Economic and company news by ForexMart

January 3, 2017
Singaporean GDP Surges as Economic Growth Exceeds Expectations
The economic growth of Singapore has heightened significantly and has recently recorded its fastest growth within a three-year span during the previous quarter as a result of services and manufacturing data regaining some of its recent losses. The nation’s GDP increased by 9.1% during the last quarter of 2016, its fastest pace since the second quarter of 2013. Meanwhile, the overall annual growth for 2016 clocked in at a growth of 1.8%, the country’s slowest GDP growth since 2009.
 
January 3, 2017.
exico Surged Over 10 Years Due to Trump’s Victory

The Remittances to Mexico has set a record-high in November over the past ten years er induced by the victory of Trump in U.S. presidential election. He has put the confidence in peso down bringing to record lows after the unexpected win of Trump and put at risk the money transfers. Trump has threatened Mexicans that money transfers will be hampered until there’s an agreement for payment for building the enormous wall to fence off all the illegal immigrants.
Almost $2.4 billion transfers were tallied from Mexicans abroad ranking higher than last year 24.7 percent, marking as their rapid expansion since March 2006. The Central bank of Mexico publicized that the recorded $27 billion remittances to Mexico in 2016 higher than the $2 billion in 2015
 
January 3, 2017

The Outlook for the Economy in 2017

The expected economic performance for 2017 appears to be very much alike with 2016 outlook. The economists surveyed by Reuters said it would be “uneven and unspectacular”. The optimism from investors is the result of the world economy breakout. While experts also mentioned the slowdown within the global trading as it became evident amid the minor recovery in the financial depression begun almost after a decade.
The emerging market remained to be seen as susceptible. The Asian markets are expected to have lesser growth seeing the 2017 prediction for global growth is 3.2 percent whereby the calculation appeared to be slightly less confident compared with last year.
The strength of the US dollar versus other currencies had influence developing economies in regulating a higher rate of inflation and with regards the declining index of business confidence.
The American economy had a high need for improving the output of every worker in order to prosper. On the other hand, the eurozone had recently accelerated since the European Central Bank had continuously purchase bonds per month worth ten billion euro. Moreover, the ongoing elections in the countries France, Germany and Netherlands is regarded a threat to the status quo of the Euro region.
Finally, the tightening campaigns of the central banks weakened the power of the global monetary policy.
 
January 4, 2017
Positive US Economic Data Stimulates Three-Month Dollar Index Surge
The USD has recently surged to its highest levels in 14 years as a string of highly positive economic data from the US increased the bullish outlook for the said currency this 2017. The USD increased further after US manufacturing data exhibited its fastest pace during a two-year period. Traders are now waiting for the release of the minutes of the Federal Reserve’s meeting which is set on Wednesday, as well as the US employment data which is scheduled to be released this coming Friday. as these are expected to determine whether the increasing value of the US dollar would still be retained in the coming days.
 
January 4, 2017
Oil Price Climbed Due to Limited supply
Oil moved higher this day as price hikes caused by the supply reduction of crude from top oil exporters such as Saudi Arabia. Moreover, the appreciation of U.S. dollar and steady advancement of the economy have limited returns.
Physical oil supplies has been constricted since production output has significantly lessened which was enacted to end the oil glut. Hence, oil producers were propelled to raise its prices. On the other hand, imports also became expensive because of U.S. dollar strengthening. The official selling price is set to increase in February.
 
January 4, 2017
Positive US Economic Data Stimulates Three-Month Dollar Index Surge
The USD has recently surged to its highest levels in 14 years as a string of highly positive economic data from the US increased the bullish outlook for the said currency this 2017. The USD increased further after US manufacturing data exhibited its fastest pace during a two-year period. Traders are now waiting for the release of the minutes of the Federal Reserve’s meeting which is set on Wednesday, as well as the US employment data which is scheduled to be released this coming Friday. as these are expected to determine whether the increasing value of the US dollar would still be retained in the coming days.
 
January 5, 2017
US Treasuries Whipsaw as FOMC Minutes Shifts Focus on USD and Fiscal Policies
US Treasuries careened between losses and gains after the minutes from the FOMC meeting last December showed that majority of the Federal Reserve’s officials have shifted their focus on slowing down the frequency of interest rate hikes. The minutes also revealed that various risks from the central bank’s fiscal policies is seen as a catalyst for speedier economic growth. The minutes of the FOMC showed a docile hawkishness but lacked any dovishness in its stance.
 
January 5, 2017
Inflation rate in the Eurozone Rack Up
The inflation rate in the European region had increased, reaching its highest pace after three years. The surge is driven by the price hike for alcohol and tobacco, energy and food.
Based on the report from the Eurostat, the inflation percentage for December gained 1.1% which is notably higher from November’s result of 0.6%.
The highest rate occurred last 2013 in the month of September by which the result is also 1.1%. The final outcome is higher-than-expected which made the ECB’s target less than 2%.
The energy prices surge by 2.5% yearly, while the value of food and intoxicants grew by 1.2% year over year. Moreover, the energy costs rose due to OPEC’s resolution to decrease the production output.
The sharp jump lessened the fears of Europe regarding the possible deflation which could weakened the eurozone’s economic growth. Meanwhile, other core prices compelled by world markets had a limited rise from 0.8% to 0.9% only, this little progress would mean that the December’s inflation is “short-lived” according to analysts.
 
January 5, 2017
Countermeasures of China to Curb Yuan in 2017
Yuan rallied this year especially the offshore trading and China is creating its contingency plan to curb the capital outflows for 2017. The offshore yuan climbed 0.9 percent to 6.8958 against U.S. dollar which is the highest increment since January 2016.
This plan was thought to counter recovering U.S. dollar while country’s capital outflow increases. Moreover, the ongoing threat from changes in U.S. policies regarding exports under Trump’s presidency. China might also sell U.S. Treasuries this year if necessary to secure the currency. This is predicted to expand the supply for foreign exchange within the onshore market and in return would support yuan in the short term.
 
January 10, 2017

USD Surges as Traders Boost Odds for Interest Rate Hike in March

The US dollar surged in value against the Japanese yen and remained just above 117.00 points for the duration of the Asian trading session after a series of US data, including the US jobs and wage data increased the possibility that the Federal Reserve would be increasing its interest rates again this year. The market odds for an interest rate hike for 2017 increased from 31% to 35%, while the sterling pound dropped in value after UK Prime Minister Theresa May remained steadfast in her decision to remove the UK from the whole of the European Union.
 
January 10, 2017

Pound Dropped due to May’s Brexit Remarks

The British currency declined by 1% and fell sharply to its two-month low versus other major pairs due to the commentary made by Prime Minister Theresa May. The 60-year old politician announced that the country will continue conducting the hard Brexit. The weakness of the pound was felt generally by other currencies except by the Turkish lira. Furthermore, PM May also told in an interview that she prefer to embed the best arrangement to work out regarding the EU exit. She mentioned also that the idea to "keep bits of membership" is already excluded.
On Monday, the Great Britain pound is relatively lower by 1.05% compared with the U.S dollar with $1.2155 and down at 1.41% against the euro at €1.1501.
According to Neil Wilson, markets analyst at ETX Capital, the sterling retreated after May expressed her remarks which signaled that the UK government would not prioritize single market access thus will focus more on immigration border law.
 
January 10, 2017

$11 Billion Growth of Local Economic Forecast on L.A. Olympic 2024

Host of the next Olympic games is expected to increase its local economic output as much as $11.2 billion and generate over 74,000 full-time jobs. Most of these jobs are full-time but only transient. Nevertheless, these are still substantial and means money outflow.
Leaders direct its goals to cut the expenses that usually left the country with shortages and high debts. Hence, they try to utilize their existing arenas and stadiums. The reports from the bid committee give a positive outlook in 2024 Olympics with Los Angeles as one of them. The International Olympic Committee set its selection date in September.
 
January 11, 2017
World Economy could Receive Boost from Tax Cuts, Says World Bank
The World Bank has stated that Trump’s proposed tax cuts and other spending policies could possibly help in boosting the global economy in spite of the concerns surrounding his proposed trading policies. The international development lender further added that the incoming administration could possibly endanger the recent gains caused by various economic stimuli once it implements the setting up of certain trading boundaries which could trigger counter-policies from neighboring countries such as Canada and the UK.
 
January 11, 2017

President Trump’s first news conference on January 11

After the victory of Donald Trump in the U.S election two months ago, the 45th American President will conduct his first news conference on January 11 at 11 a.m. The time zone is inclined to New York City White House or commonly called as Trump Tower.

In spite of his active presence on a microblogging site, Twitter, this is the first time that he will have a formal exchange of question and answer associated with the press.

Traders supposed the late day market sell-off could weigh over the investors which trigger their angst against what might Trump will say in the presscon.

The agenda of the forum is not about anything specific about the President or his staffs. According to the general agreement, the President elect of the United States (PEOTUS) will answer the point of issues thrown by the media which includes the nullification of Affordable Care Act, confirmation of hearings for the Cabinet nominees, immigration and commercial policy in US, prospective business policies, conflicts of interest regarding his incumbency and lastly, his choice for the Special Advisor to the President.
 
January 11, 2017

Reduced Global Economic Growth Forecast of World Bank in 2017

The global economic forecast from World bank decreased by 0.1 percentage point. Reports released on Wednesday stated the figures will be 2.7% in 2017 and 2.9% in 2018. As for 2016, its global GDP forecast decreased by 0.1 percentage point to 2.3%.

On the positive side, the Emerging market and developing countries are anticipated to gain its momentum in 2017 despite concerns related to commodity exports and domestic demand for commodity imports. Although there are associated risks such as uncertainty to policies of developed economies and sluggish growth. Moreover, the effects of fiscal stimulus and other policies could have a heavier effect more than expected.
 
January 12, 2017

USD Plummets, Stocks Rise as Trump Disappoints Market Anew

The USD weakened dramatically during the previous trading sessions while stocks surged in value following president-elect Donald Trump’s first press conference since last July, wherein he disappointed a lot of market players after he merely talked about his personal interests and business enemies, including his plans to build a Mexican border in the next two years instead of outlining his administration’s economic and fiscal policies for the next four years. Meanwhile, US Treasuries recovered its losses and the Mexican peso dropped further in value following Trump’s statement regarding US business relations with Mexico.
 
January 12, 2017

Aggressive Rate Cut of Brazil Giving Positive Outlook to the Economy

The Central Bank of Brazil reduced its Selic rate benchmark abruptly in their attempt to boost the weak economy of the country as a result of the unanimous vote on Wednesday. It lowered by three quarters of a point to thirteen percent instead of the forecasted four points. This has been the lowest rate cut since October last year.
According to the central bank, the inflation aligns with the target although the economic growth is still poor. Even though inflation has slower pace of growth for more than two years, there are still pile of debts and wavering confidence from businesses and consumers as consumer prices increase more that hamper progress in the economy.
 
January 12, 2017

BOE’s Carney Reversed Warnings on Brexit Danger to UK

Brexit poses no risk at all towards the UK economy, BOE’s Governor Mark Carney told the Members of Parliament. The governor confirmed the perils about the Bank’s decision to leave the European Union were already reduced. However, the likelihood of risk is considered to be “elevated” since the danger weigh more within the continent of Europe than the UK.
Carney also mentioned there is a need to undertake the transition period and further marked it as "highly advisable". Failure to carry out the stage for transition will bear consequences by which this major changes will be the support in alleviating the possible fallout.
The Canadian economist said the country should focus on stabilizing the access in financial services industry as Brexit took place eventually. The financial market is subjected to endure extreme consequences in case it lose some of its elements.
 
January 16, 2017

Oil prices Amp Up as the Dollar Weakens

Oil prices edged higher as the dollar weaken and the expectations about Organization of the Petroleum Exporting Countries (OPEC) en masse with other producers will reduce its output since it's part of the deal in curbing the worldwide overproduction.


According to traders the prices appears to be buoyant due to the sluggish stance of greens which made fuel cost cheaper for countries that utilize foreign currencies
The oil further accumulated support from the issued reduction for crude production which includes major producers in Russia.

OPEC also mentioned that they would cut down the quantity they produced with 1.2 million barrels each day to 32.5 million bpd starting 1st of January. However, there are assumptions that the Austria-based company will not totally execute the declared cutback whereas the agreement of 50 to 80 percent are adequate to support petroleum purchase.
 
January 16, 2017

Economic Assessment Shows a Moderate Growth of Japan’s Economy

The Bank of Japan economic assessment shows a positive outlook in its quarterly report on Monday. Three out of nine regions saying giving a moderate economic recovery while other regions stay the same because of higher private consumption and increase in demand from Emerging Asian countries. On the other hand, retails sales increased in November with the tightening of the labor market as wages rises as well.

This the first time after seven quarters passed with BOJ raising its assessment for different regions implying that the country is in its way to recovery at a moderate pace. It is anticipated by the analysts that the central bank will delay its planned stimulus in the next months as the economy moves having an optimistic future for the country.
 
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