Existing home sales fell in June

(Reuters) - Economists polled by Reuters were expecting home resales to fall to a 5.88 million-unit pace from the 5.99 million-unit rate initially reported for May. Sales were revised in May to 5.98 million units.




The inventory of homes for sale fell 4.2 percent to 4.196 million units at the end of June, which represents an 8.8 months' supply.


Read more at Reuters.com Business News

WRAPUP 1-U.S. jobless claims, leading index fall

(Reuters) - First-time claims for state unemployment benefits fell to
301,000 in the week ended July 14 from an upwardly revised
309,000 claims the prior week, the Labor Department said.
Economists had expected them to rise slightly.




It was the second consecutive weekly decline and took
initial claims to their lowest level since mid-May.


Read more at Reuters.com Bonds News

Euro Falls on View Recent Gains Already Reflect Outlook for Interest Rates

(Bloomberg) -- The euro declined from a record
against the yen on speculation recent gains already reflect
expectations the European Central Bank will raise interest rates
this year.

The European currency rose to the highest level in two
months yesterday versus the dollar before the ECB's monthly rate-
setting meeting this week. Economists surveyed by Bloomberg News
forecast policy makers will hold borrowing costs at 4 percent
July 5. The euro's rally this year is putting European
manufacturers at a disadvantage, French President Nicolas Sarkozy
said yesterday.


Read more at Bloomberg Currencies News

Australian Dollar Falls as Retail Spending and Building Approvals Decline

(Bloomberg) -- The Australian dollar fell from an
18-year high after government reports showed retail sales and
building approvals declined in May. Bonds rose.

The currency pared gains as traders cut odds the Reserve
Bank of Australia will increase its key interest rate this year.
Economists had expected retail sales to rise and building
approvals to drop by less. Australia's dollar earlier climbed on
speculation investors may be lured to the yield advantage of the
country's government bonds.


Read more at Bloomberg Currencies News

UPDATE 1-Midwest expansion slows in June but still strong

(Reuters) - The National Association of Purchasing Management-Chicago
business barometer eased to 60.2 from 61.7 in May.




Economists had forecast the index at 58.0. A reading above
50 indicates expansion.


Read more at Reuters.com Bonds News

WRAPUP 1-Asia growth outlook brightens with resilient exports

(Reuters) - Economists canvassed in the quarterly survey have ramped up
growth forecasts for 12 economies in the Asia-Pacific after
output, exports and consumption data have consistently
outstripped expectations. Japan was not included in the poll.




As a result, several Asian economies are now expected to
match or even top last year's economic performance.


Read more at Reuters.com Economic News

U.S. securities industry group sees moderate growth

(Reuters) - Rising energy prices and a sudden rise in long-term
interest rates are likely to weigh on the consumer and drag out
the moderate growth.




"It's likely to prolong the housing contraction," said
David Resler, Chief Economist at Nomura, of the recent rise in
long-term rates. "I think the jump in long-term rates may
prolong the period that the U.S. is not out of the woods."


Read more at Reuters.com Economic News

European Government Bonds Gain; German Sentiment Index Unexpectedly Drops

(Bloomberg) -- European government bonds rose after
a report showed investor confidence in Germany, the continent's
biggest economy, unexpectedly fell this month.

Two-year yields fell from near a six-year high after the ZEW
Center for European Economic Research said its index of investor
and analyst expectations dropped to 20.3, from 24 in May.
Economists surveyed by Bloomberg News had expected confidence to
improve, predicting a reading of 29.


Read more at Bloomberg Bonds News

Mexico's Bolsa Advances on Tax Bill's Prospects, Led by America Movil, ICA

(Bloomberg) -- Mexico's Bolsa index rose for a fourth
day on expectations that President Felipe Calderon has the support
to pass legislation that will boost tax collection and spur
government spending.

``The fact that there's growing consensus that a fiscal reform
is going to be submitted has investors optimistic,'' said analyst
Mauricio Brocado at Actinver SA in Mexico City, after El Economista
reported that Calderon will propose a flat 15 percent tax rate and
a 2 percent fee on cash deposits as part of a bill to be presented
this week.


Read more at Bloomberg Stocks News

U.S. May small business optimism index up slightly

(Reuters) - Employment gains were solid in May but not spectacular. The
unemployment rate will stay low, but might rise a few tenths of
a point, NFIB said.




"This year's May employment gains were as expected," said
NFIB Chief Economist William Dunkelberg. "The NFIB survey has
anticipated solid gains all year."


Read more at Reuters.com Economic News

India's Industrial Production Increases by 13.6 Percent, Beating Estimates

(Bloomberg) -- India's industrial production growth
beat expectations in April, suggesting the central bank may need
to raise borrowing costs further to contain inflation stoked by
consumer demand.

Output gained 13.6 percent from a year earlier after a
revised 14.5 percent increase in March, the Central Statistical
Organisation said in a statement in New Delhi today. Economists
expected a rise of 11.3 percent.


Read more at Bloomberg Emerging Markets News

WRAPUP 1- U.S. Q1 non-farm productivity rose 1.0 pct

(Reuters) - The Labor Department reported on Wednesday that non-farm
productivity, a measure of how much any given worker can
produce in an hour, advanced at a 1.0 percent annualized pace
during the first quarter of this year, driving up unit labor
costs by 1.8 percent.




Economists polled ahead of the Labor Department report had
revised down their forecasts for productivity, expecting
non-farm productivity to advance by 1.1 percent and unit labor
costs to rise by a bigger 1.2 percent after the government
reported scant gross domestic product growth of just 0.6
percent during the first quarter.


Read more at Reuters.com Bonds News

Thai Bonds Decline as Economic Growth Beats Forecast; Baht Little Changed

(Bloomberg) -- Thailand's bonds fell after a
government report showed the economy grew faster than expected in
the first quarter. The baht was little changed.

Yields on benchmark 10-year notes rose to the highest in more
than six weeks. Gross domestic product rose 4.3 percent in the
first three months from a year earlier, the National Economic and
Social Development Board said in Bangkok today. Economists had
expected a 3.7 percent growth in a Bloomberg survey.


Read more at Bloomberg Bonds News

Swiss Franc Holds Near Two-Week High Versus Dollar as GDP Growth Quickens

(Bloomberg) -- The Swiss franc traded near its
highest in two weeks against the dollar after a report showed
first-quarter growth in the Swiss economy quickened faster than
estimated.

Switzerland's currency yesterday touched the highest versus
the euro in more than two weeks as falling global stocks caused
investors to dump riskier assets. A report today showed gross
domestic product in the Alpine economy rose 0.8 percent from the
fourth quarter. Economists surveyed by Bloomberg News had
expected 0.6 percent growth.


Read more at Bloomberg Currencies News