USA

Rise In U.S. Retail Sales Points To Pickup In Spending. Retail sales rose in July for a fourth consecutive month, showing American households are regaining momentum as employment climbs. The 0.2 % increase in purchases followed a 0.6 % June gain that was larger than previously reported, Commerce Department figures showed today in Washington. The numbers in the report that feed into gross domestic product climbed by the most this year, prompting some economists to boost growth estimates. (Bloomberg)

Companies In U.S. Kept Inventories Lean In June As Sales Rose. Inventories at U.S. companies were little changed in June as sales improved, signaling manufacturers will be growing orders. Stockpiles held at around $1.66 billion after dropping 0.1 % in May, the Commerce Department reported today in Washington. The median estimate in a Bloomberg survey projected a 0.2 % advance. Sales rose 0.2 % in June. (Bloomberg)

Import Prices In U.S. Increase Less Than Forecast On Auto Plunge. The cost of goods imported into the U.S. rose less than forecast in July, reflecting the biggest drop in automobile import prices in more than 20 years. The 0.2 % increase in the import-price index followed a revised 0.4% drop the prior month that was more than initially reported, according to Labor Department figures released today in Washington. The value of imported automobiles, parts and engines fell 0.5 % from the prior month, the most since a 1.1 % decline in December 1992. Import prices rose 1 % in July from the same month in 2012. (Bloomberg)

Europe

UK Inflation Rate Falls To 2.8% In July. The rate of consumer prices index (CPI) inflation fell to 2.8% in July, down from 2.9% in June, according to the Office for National Statistics (ONS). The fall came after the cost of clothing and leisure and cultural activities decreased. The rate of retail prices index (RPI) inflation fell as well, to 3.1%, from 3.3% in June. (BBC)

U.K. Home-Price Index Rises To Seven-Year High, RICS Says. A U.K. house-price gauge rose to the highest in almost seven years in July as government measures to stimulate the property market boosted demand, the Royal Institution of Chartered Surveyors said. The index rose to 36 from 21 in June, the highest reading since November 2006, London-based RICS said in an e-mailed report today, citing a monthly poll of property surveyors. A positive number means more respondents saw values increase rather than decline. A measure of inquiries from new buyers rose to 53 from 38, the most in four years. (Bloomberg)

German Investor Confidence Up As Euro Area Resumes  Growth. German investor confidence increased more than economists expected in August as the recovery in Europe’s largest economy helped pull the euro area out of its longest-ever recession. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, rose to 42 from 36.3 in July. That’s the highest level since March. Economists predicted 39.9, according to the median of 42 estimates in a Bloomberg News survey. (Bloomberg)

Eurozone Manufacturing Output Rises Ahead Of GDP Data. Factories in the eurozone saw output rise in June, reinforcing hopes the bloc may have exited recession in the second quarter. Industrial production grew by 0.7% from the previous month, according to official data from Eurostat. The rise was driven by a 4.9% surge in the production of durable consumer goods, such as cars and computers. (BBC)

Currencies

U.S. Dollar Adds To Gains After Retail Sales. The U.S. dollar extended gains Tuesday after retail sales rose for the fourth consecutive month in July. The euro fell to $1.3259 from $1.3308 late Monday in North America. The dollar climbed more than 1.5% to 98.22 Japanese yen from ¥96.66 late Monday. The ICE dollar index, which tracks the U.S. currency’s movement against six rivals, rose to 81.772, up from 81.331 late Monday in North American trade. The British pound, or sterling traded at $1.5444, lower than $1.5471 late Monday. The Australian dollar bought 90.95 U.S. cents, pulling back from 91.50 U.S. cents. (Market Watch) 

Commodities

Gold Down 1 Pct On U.S. Retail Data, India Duty Hike. Gold fell 1 % on Tuesday, snapping a four-day winning streak, weighed down by better U.S. consumer spending data and after top market India hiked its import duty on gold to a record 10 %. Spot gold fell 1 % to $1,322.40 by 2:14 p.m. EDT (1814 GMT).   Silver sharply erased its early gains, largely tracked gold's move. It last traded 0.3 % higher at $21.42 an ounce, having earlier risen to a two-month high of $21.76 an ounce. Among platinum group metals, platinum edged up 0.2 % to $1,495.24 an ounce, while palladium gained 25cents to $736.25 an ounce. (Reuters)

Oil Up For Third Session On Supply Problems In Libya, Iraq. Oil prices on both sides of the Atlantic rose for a third straight session on Tuesday because of worries over supplies from OPEC  nations Libya and Iraq. Front-month  Brent crude  oil futures for September delivery rose 85 cents to settle at $109.82 a barrel after touching an intraday high of $110.06, its highest since it hit a four-month high of $110.09 on Aug. 2. In the United States, front month crude oil futures rose 72 cents to settle at $106.83 a barrel after trading as low as $105.56 during the session. U.S. crude's discount to Brent settled at $2.99 a barrel. (Reuters)