Eurozone economy is growing the slowest pace since the end of the recession

Eurozone economy is growing the slowest pace since the end of the recession, as business and consumer confidence waned and stock prices fell, according to the measure of activity compiled by the Centre for Economic Policy Research (CEPR) and Bank of Italy. CEPR and Bank of Italy on Friday said that their indicator of economic activity fell Eurocoin to 0.03% from 0.22% in August, dropping the fourth consecutive month. It was the lowest level since August 2009.
Eurocoin indicator designed to assess the gross domestic product growth from quarter to quarter, with the exception of unstable components, such as seasonal fluctuations and short-term volatility.
"The decline mainly reflected trends in stock prices and growing pessimism on the results of surveys of consumers and businesses," - said the Bank of Italy and CEPR.

Euro / Pound. Comments dealers, Foreign Exchange Market

Euro / pound in European trading is under pressure. At the moment the couple kept in stg0.8680. As noted by one of the dealers, the level of stg0.8675 strike has now expiring option. Market participants believe that the end of the month associated with the payment of the EU the UK will take place during the fixing the ECB. However, the expected strong demand for euro / pound by the Bundesbank, as well as active selling the pound to the dollar model accounts. Interest in buying a pair of felt stg0.8670/60, and then to stg0.8650. The breakthrough of this level may open the way to move toward stg0.8640/30. The nearest resistance is a pair of runs on stg0.8740, and then at the 100-day moving average at stg0.8795. The current euro / pound stg0.8677.

Data on retail sales in Germany did not add optimism

The single European currency once again managed to find support near $ 1.3520, and against the background of the profit is adjusted higher. However, near the $ 1.3565 the bears became more active, and the publication of a weak report on retail sales in Germany has provoked a new wave of sales, resulting in the pair is trading now around $ 1.3535. Dealers say that while the bulls keep a stiff upper lip, but a break below $ 1.3520 threatens to turn into a more active falling euro / dollar, and they warn that such an event would entail the development of lower to $ 1.3500 and $ 1.3480, while below the last mark will have another series of pretty good stops. Ofer now appear in the $ 1.3550/60, further orders are placed on the Bears $ 1.3580, larger - on $ 1.3595/05 with stops above. Source: Forexpf.Ru

Asia Stock chose the red zone

During today's trading stock index Asia-Pacific region fell for the first four sessions and complete the quarter the most significant decline for almost 3 years, reported Bloomberg. Statistical data from the U.S. not calmed investors' fears concerning the threat of recession, world's largest economy.

Composite stock index MSCI Asia Pacific region fell by 0.5% - to 113.56 points. Since the beginning of the week indicator gained 1.7%. Japan's Nikkei 225 fell 0.5%, South Korea's Kospi - 1.2%, Hong Kong's Hang Seng - by 2.1%.

Stock quotes a Hong Kong company Li & Fung Ltd., A supplier of clothing and toys to retailers in the world, including Wal-Mart, have fallen by 5.1% due to fears of demand reduction.

Paper concern the world's leading automotive Japanese Toyota Motor Corp. fell 0.9%.

Samsung Electronics Co. reduced the capitalization of 1.9%.

Price of securities of the second-largest oil company Australian Woodside Petroleum Ltd. increased by 0.8% following the increase in oil prices.

Since the beginning of the month MSCI Asia Pacific has fallen off by 9.1%, bringing the decline this quarter, up 16% - a maximum of three months ended in December 2008, in the midst of a global crisis. In selected markets in the region is a quarterly decline of 11% to 21%.

The preliminary consumer price index / CPI / Italy in May, 0.1% m / m, 2.6% y / y

ROME, May 31. Inflation in Italy in May slowed down compared to the previous month, although it remained unchanged compared with the same period last year. At this point released Tuesday, preliminary data from a national statistics agency Istat.
According to the data, the consumer price index / CPI / in May rose by 0.1% compared to the previous month and 2.6% over the same period last year. In April the consumer price index rose by 0,5%.
Annual price increases in May coincided with an increase in April, when the consumer price index grew at the fastest pace since November 2008.
These data are roughly coincided with the forecast of economists surveyed by Dow Jones Newswires, according to which the index would grow by 0,2% compared to the previous month and 2.6% over the same period last year.
Harmonised index of consumer prices in Italy, which allows for more discounts offered for promotional purposes, and is a key indicator of inflation for the European Central Bank / ECB / in May rose by 0.2% compared to the previous month.
Annual core inflation, which ignores volatile energy prices and fresh food, in May was 1.8%, remained unchanged compared with April.
Without taking into account energy price inflation was 2.1% versus 2.0% in April.
In the spring of this year, the ECB would raise interest rate to 1.25%, seeking to prevent the growth of inflationary expectations.
Annual inflation in commodity prices in May was 3.0%, while prices of services rose by 2,3%.
Rising energy prices, which account for about 8% of the total price growth slowed in May. They rose 0.1% compared to the previous month and 9.8% compared with the same period last year. In April, prices jumped by 1.9% compared to the previous month and 10.7% compared with the same period last year.

EUR /CHF:The direction of EUR /CHF 1.2099 and indicates 1,2256 - UBS

Key technical signals the direction for the euro / Swiss franc at 1.2099 are 1.2256 and say to UBS. "Given that the euro / dollar has stabilized recently, the fall of the euro / franc also slowed, and the first time in a long time Frank was not able to reach new record highs on Monday" - economist says Reto Hyunervadel. "The illiquid market currency pairs with the Franks were unable to grow, " - he adds. As at 09.34 GMT, the euro / franc was trading at 1.2270.