• US stock market, economy and companies update (August 13, 2015)

    The PBoC set the USD/CNY level lower for a third consecutive day, however the rate of decline eased to -1.1%. At the press conference held after the fixing, the PBoC said its yuan adjustments were almost complete and dismissed talk that it was looking for a 10% total devaluation (USD/CNY has been devalued by a total of 4.7% so far). Fed fund futures still see a 55% chance of a 0.25% rate hike in September. In Europe, the CAC and DAX are seeing a solid bounce higher after yesterday's slaughter, although the FTSE has given up earlier gains and is looking to close in the red. As of writing, the DJIA is flat, the S&P500 off 0.11% and the Nasdaq is up 0.11%.

    US July retail sales report indicated the US consumer continues to boost spending. The June ex auto, ex auto and gas, and control group components were revised up to modest grow from small declines, however the headline June retail sales were left at -0.3%. The weekly jobless claims were slightly higher than expected, but the four-week average of initial claims remains at 15-year lows.

    WTI crude fell as low as $42.10 this morning, cents away from the six-year low of $42.03 seen in March. After rising to around $50.80 yesterday, Brent has fallen back to around $49.45 today. EUR/USD topped out around 1.1214 midway through yesterday's US session and then steadily pulled back, hitting 1.1080 after the US data out before the open of trading today.

    European institutions aired their concerns about Greece's debt sustainability, putting pressure on Germany to offer some form of debt relief. A European Commission report said the third bailout package would total 91.7B, comprised of 85.5B in aid and 6.2B in privatization revenues. Separately, an EU debt sustainability analysis said that even with better-than-expected implementation of reforms, Greece's debt would stand at 148% of GDP in 2022. Partial implementation would put Greek debt to GDP at 174% in 2022. This analysis is right in line with numbers offered by the IMF in July. The Greek parliament will vote on whether to support the bailout program later today.

    Shares of retailer Kohl's are down 9.7% today after the firm missed top- and bottom-line expectations its its second-quarter report and downgraded its FY view. Cisco is up 3.7% after reporting positive fourth-quarter numbers and offering good first-quarter guidance. Growing software sales revenue suggested Cisco continues to make progress in its effort to reorient to cloud services from hardware sales. Tesla is up 2.6% after filing to offer 2.1 million common shares, about 1.6% of shares outstanding. The equity sale is targeted at investments in its supercharger network, manufacturing plant and the Gigafactory.

    ***Looking Ahead***
    - 12:00 (IS) Iceland July International Reserves (ISK): No est v 605B prior
    - 13:00 (US) Treasury to sell $16B in 30-Year Bonds
    - 17:00 (CL) Chile Central Bank (BCCh) Interest Rate Decision: Expected to leave Overnight Rate Target unchanged at 3.00%
    - 18:45 (NZ) New Zealand Q2 Retail Sales Ex Inflation Q/Q: 0.5%e v 2.7% prior
    - 19:00 (PE) Peru Central Bank (BCRP) Interest Rate Decision: Expected to leave Reference Rate unchanged at 3.25%


    ***Economic data***
    - (IE) Ireland July CPI M/M: -0.3% v +0.3% prior; Y/Y: -0.2% v -0.1% prior
    - (IE) Ireland July CPI EU Harmonized M/M: -0.3% v +0.4% prior; Y/Y: 0.2% v 0.4% prior
    - (PL) Poland Jun Current Account Balance: -0.9B v +0.3Be; Trade Balance: 0.0B v 0.9Be
    - (PL) Poland July CPI M/M: -0.1% v -0.2%e; Y/Y: -0.7% v -0.8%e
    - (RU) Russia Gold and Forex Reserve w/e Aug 7th: $358.0B v $357.6 prior
    - (US) July Advance Retail Sales M/M: 0.6% v 0.6%e; Retail Sales Ex Auto M/M: 0.4% v 0.4%e; Retail Sales Ex Auto and Gas: 0.4% v 0.4%e; Retail Sales Control Group: 0.3% v 0.5%e
    - (US) July Import Price Index M/M: -0.9% v -1.2%e; Y/Y: -10.4% v -10.7%e
    - (US) Initial Jobless Claims: 274K v 270Ke; Continuing Claims: 2.273M v 2.25Me
    - (CA) Canada Jun New Housing Price Index M/M: 0.3% v 0.1%e; Y/Y: 1.3% v 1.2% prior
    - (US) Jun Business Inventories: 0.8% v 0.3%e
    Minutes
    - (US) Weekly EIA Natural Gas Inventories: +65 bcf vs. +54 to +56 bcf expected

    [I]Contributed by Trade The News[/I]
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