The European shares are sliding down today after a two-days growth. Despite the major fluctuations, the all European FTSEurofirst 300 index weekly change may be insufficient. Instead, chances are that the Stoxx Europe 600 Index monthly slump is the biggest since August 2011. At 14:00 CET today the German Consumer Price Index of August is to be released. In our opinion, the outlook is negative as deflation is expected.The Nikkei Index kept growing today due to the positive macroeconomic data. The National Consumer Price Index ex-fresh food turned out to be 0,0% in July instead of the expected deflation. The jobless rate has decreased and the retail trade went up. The Yen has become cheaper to the US Dollar which triggered the growth of the exporters shares: Toyota Motor ( 4,6%) and Panasonic ( 4,2%). The metals’ increase in price has led to the shares prices growth of Nippon Steel and Sumitomo Metal of 7,6% and of Toho Zinc of 7,1%. The majorJapanese fund Next Funds Nikkei 225, trading the weighted ETF on the stock index, has started operation again after the limit surge from 700 bln. Yens to 1 trn. Yens. In our opinion, it may start buying shares which will be a positive factor for the Japanese market. The fund is managed by the Nomura Asset Management. The industrial production and the housing starts are to be released early in the morning on Monday morning. Our outlook is negative.
The gold price has diminished slightly amid the positive economic statistics from the US and is supported by the low probability of the rate hike in September by the Fed. The copper is struggling for the correction after hitting the six-year low on Monday. Yesterday it showed the maximum daily growth since May 2013.
The rice quotations have corrected down slightly during the last two weeks and resumed their growth today. The Asian countries increase the rice stocks on the concerns that El Nino may damage the crop. Let us emphasize that the crop futures quotations are a bit behind the rice price growth.
The soy price hit a fresh 6-year low on Monday and have rebounded more than 2% for the last two days. The US Agricultural Department has increased its expected export volume for the 2015/2016 season.