Germany Retail Sales Performed Worst Than Expectations

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From Trading Economics: Retail sales in Germany fell 0.4 percent month-on-month in August of 2016, compared to a downwardly revised 0.5 percent gain in July while market estimated a 0.3 percent drop. Year-on-year, retail sales rose 3.7 percent, compared to a 1.5 percent decline and beating consensus of a 1.3 percent growth. Retail Sales MoM in Germany averaged 0.02 percent from 1994 until 2016, reaching an all-time high of 4.10 percent in November of 2001 and a record low of -4.80 percent in May of 2007. Retail Sales MoM in Germany is reported by the Federal Statistical Office.

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In Asian Equity Markets, stocks extended losses on Friday as worries about the health of Deutsche Bank weighed on financial shares and as oil prices inched back from near-one-month highs on scepticism over OPEC's new plan to curb output. MSCI's broadest index of Asia-Pacific stocks outside Japan lost almost 1 percent and was on track for a 0.8 percent fall for the week. Japan's Nikkei retreated 1.6 percent after weaker-than-expected consumption and inflation data.  It is on track for a loss of 2.7 percent for the month but could end the quarter 5.5 percent higher. China's CSI 300 index bucked the regional trend to rise 0.4 percent, paring losses for the month to 2.1 percent. Chinese markets are closed for a holiday all next week.

In Currency Markets the safe haven Swiss franc held firm on Friday as concerns about the health of Deutsche Bank undermined risk sentiment, while the Japanese yen looked set for its third straight quarter of gains despite suffering a slight loss on the day. The dollar later pared some of its gains and was last trading at 101.28 yen, up 0.2 percent yen on the day. The Swiss franc hit a six-week high against the euro at 1.0832 francs earlier on Friday. Against the dollar, the Swiss franc  stood at 0.9661 francs, having set a one-month high of 0.9640 francs on Thursday. The euro eased 0.1 percent to $1.1217. The British pound eld steady at $1.2969. Expectations that the Bank of England might further ease monetary policy in coming months have weighed on sterling.

In Commodities Markets oil prices fell on Friday as investors took profits following a 7-percent rise in the last two sessions, amid doubts that OPEC's first planned output cut in eight years would make a substantial dent in the global crude glut. Brent crude futures had fallen 31 cents to $48.93 a barrel, after settling the previous session up 1.1 percent. U.S. crude, was down 28 cents at $47.55, after closing up 78 cents and having touched a one-month high of $48.32 that session. The OPEC agreed on Wednesday to cut output to 32.5-33.0 million barrels per day from around 33.5 million bpd.  Spot gold had risen 0.2 percent to $1,322.80 an ounce and silver was down 0.2 percent at $19.05 an ounce.

In US Equity Markets stocks fell on Thursday, weighed down by Apple as well as selling in Wells Fargo, Citigroup and other major banks as investors worried about the health of Deutsche Bank. The S&P 500 lost 0.93 percent to end at 2,151.13 and the Nasdaq Composite fell 0.93 percent to 5,269.15. The S&P 500 financial index declined 1.49 percent after Bloomberg reported that some hedge funds have withdrawn excess cash and positions held at the German lender.  Wells Fargo & Co lost 2.07 percent after U.S. lawmakers rebuked CEO John Stumpf over his handling of sales abuses. Citigroup lost 2.28 percent and JPMorgan Chase fell 1.59 percent. Apple fell 1.55 percent after Barclays cut its price target

In Bond Markets the yield on benchmark 10-year Japanese government bonds edged up on Friday as the Bank of Japan trimmed the amount of long-term debt it buys at its regular market operations. The 10-year JGB yield was last up 1.5 basis points at minus 0.075 percent. The BOJ said it reduced its purchases of JGBs with five to 10 years of maturity to 410 billion yen ($4.04 billion) from 430 billion on Wednesday.

Source: Institute of Trading and Portfolio Management