Global Macro Perspectives
China Consumer Price Index was up 6.5% in July, vs. 6.4% consensus and 6.4% June reading. Food inflation jumped 14.8%, up from June’s 14.4%. The government’s target for the year was at 4%.
China Producer Price Index was up 7.5% vs. 7.5% consensus and 7.1% June reading. This suggests rising CPI.
Difficult position for China, the economy is slowing down and inflation is rising.
Number of crude oil drilling rigs in the U.S. rose for 24 in July; Number of natural gas drilling rigs rose for 6.
On world scale number of oil & gas drilling rigs rose for 140 in July.
Baltic Dirty Tanker Index fell 1.0%; Baltic Clean Tanker Index fell 1.2%.
Baltic dry index rose 0.3% last week; Capesize Index was up 3.1%; Panamax Index fell 2.2%; Supramax Index was down 0.7%; Handysize Index fell 2.4%.
Iron ore and steel inventory not reported; prices stable. Thermal coal inventory and price stable.
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Nonfarm payrolls rose 117.000 in July; Consensus was at 75.000; June reading was an increase of 18.000. The unemployment was reported at 9.1% vs. prior reading and consensus of 9.2%.
Private payrolls were up 154.000 vs. 108.000 consensus and 57.000 reading in March.
By all means this is not a strong report, but is much, much better than feared.
U.S. railroads originated 292,812 carloads, down 2.5% compared with the same week in 2010 and down 5.1% compared with 5-year average. Week over week change was +0.3%.
Working gas in storage rose 44 Bcf from previous week.
Storage level is 190 Bcf lower than same time year ago and bellow 5-year average.
Initial jobless claims in the U.S. were reported at 400.000 vs. 405.000 consensus and last week revised (up 3.000) reading of 401.000.
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Technically crude oil (WTI) looks heavily oversold. On the other side crude oil demand is closely following 2008 path…
U.S. total motor vehicle sales rose 6.9% to 12.2 million SAAR in July. On year level motor vehicle sales are up 5.4%.
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MBA mortgage applications rose 7.1%; Prior reading was a fall of 5.0%; On year level MBA Basic Index is down 22.6%.
ADP Employment rose 114,000 in July vs. revised (down 12,000) gain of 145,000 in June.