UK Unemployment Claimant Change Decreased in July

The number of people claiming unemployment benefits in the UK decreased by 8.6 thousand in July 2016, following an upwardly revised 0.9 thousand gain in the previous month. It was the first fall since February while markets were expecting a 10 thousand rise.

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Market Opening Wrap

In Asian Equity Markets stocks pulled back from a one-year high and the dollar strengthened on Wednesday, after an influential Federal Reserve official said interest rates could rise as soon as September. MSCI's broadest index of Asia-Pacific stocks outside Japan lost 0.3 percent, while the Nikkei rose 0.6 percent to 16,691.58. The broader Topix gained 0.5 percent to 1,305.20 and the JPX-Nikkei Index 400 advanced 0.6 percent to 11,751.46. China's CSI 300 index, the Shanghai Composite both lost 0.6 percent after authorities approved the launch of a long-awaited scheme to allow stock trading between Shenzhen and Hong Kong and lifted quota limits for the existing Shanghai-Hong Kong Stock Connect.

In Currency Markets the dollar edged off 7-week lows against the yen and euro on Wednesday following hawkish comments from Federal Reserve officials, but scepticism about the Fed's willingness to tighten policy limited the bounce. The dollar nudged up 0.2 percent to 100.530 yen after falling to 99.550 overnight. The euro was steady at $1.1279 following an overnight rise to $1.1323, its highest since June 24. The pound fell 0.1 percent to $1.3033. The Australian dollar fell 0.1 percent to $0.7686 and the New Zealand dollar was flat at $0.7275. The loonie fetched C$1.2860 per dollar after touching a 7-week high of C$1.2798 on Tuesday, helped by crude oil's advanced to 1-month highs. The dollar index was little changed at 94.822.

In Commodities Markets oil prices fell away from 5-week highs early on Wednesday, as analysts doubted possible producer talks to rein in ballooning oversupply would be successful. Brent crude futures were trading at $48.92 per barrel, down 31 cents from their last settlement. U.S. WTI crude was at $46.38 per barrel, down 20 cents from its last close, but still up 18 percent from early August. The OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month, with sources citing Saudi Arabia's wish for higher prices.  Spot gold was down slightly at $1,343.78 an ounce. Silver was up 0.3 percent at $19.83 an ounce on Wednesday. Platinum was up 0.4 percent at $1,117.30, while palladium fell 0.5 percent at $696.72.

In US Equity Markets  stocks eased from record highs on Tuesday after comments from Federal Reserve officials fueled speculation of an interest rate hike this year. The Dow Jones industrial average was down 0.45 percent, to 18,552.02, the S&P 500 lost 0.55 percent, to 2,178.15 and the Nasdaq Composite fell 0.66 percent, to 5,227.11. Shares of TJX were down 5.8 percent and among the biggest drags on the S&P 500 after the company forecast fiscal-year earnings below analysts' estimates. Among the day's gainers, shares of industrial gas supplier Praxair rose 2.7 percent after the company announced it was in early-stage talks on a merger with German peer Linde.

In Bond Markets  Japanese government bond prices fell on Wednesday, with the market tracking an overnight retreat by U.S. Treasuries.  Mid-term JGBs also sagged on caution ahead of Thursday's five-year debt auction, with the five-year yield rising 1.5 basis points to minus 0.160 percent. The benchmark 10-year JGB yield rose 1.5 basis points to minus 0.085 percent. The 20-year yield also climbed 1.5 basis points, to 0.285 percent.

Source: Institute of Trading and Portfolio Management