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Toshiba Eyes $8.8 Billion in Chip Unit Stake Deal

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Toshiba Corp. is seeking to gain a minimum of 1 trillion yen or $8.8 billion from the sale of a majority share in its memory chip business and will attempt to finish the deal by March 2018, according to sources.

The sale comes as the Japanese conglomerate issued a warning of a $6.3 billion writedown that will hit its U.S. nuclear business earlier this month. As it looks for a buffer against any fresh financial setbacks, Toshiba states it is now ready to put up for sale a majority stake or even all of the NAND memory unit.

The deal is seen to result in Toshiba ceding is majority hold over the unit which could have a market valuation as high as 2 trillion yen. Sources said the company wants to carefully consider its options and negotiate the best price before mapping a final timetable, although it is aiming to reach a deal before the end of the next financial year.

The company has not yet finalized the size of the stake to be put up for sale and is centering its focus on the total amount that can be raised. The person privy to the matter added that Toshiba would like to maintaining a one-third holding that would allow it a certain position of control over the business.

Toshiba's shares were up 2% in morning trade.

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Fxwirepro: Eur/krw Hovers Around Key Support at 1,200 Mark, sustained Close Below Targets 1,184

EUR/KRW is currently trading around 1,201 mark.

Pair made intraday high at 1,202 and low at 1,199 levels.

Intraday bias remains neutral till the time pair holds key support at 1,200 mark.

A daily close below 1,200 will drag the parity down towards key supports around 1,184, 1,178 and 1,163 marks respectively.

Alternatively, a sustained close above 1,200 will take the parity higher towards key resistances around 1,209, 1,221, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.

Seoul shares open up 0.17 pct at 2106.42.

We prefer to take short position in EUR/KRW only below 1,200, stop loss at 1,210 and target of 1,190/1,184.

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Gold Steady as Investors Await for Clues on U.S. Rate Hikes

Gold prices were steady on the latest weaker-than-expected U.S. data, after dropping one percent on restored expectations of U.S. interest rate hikes in March that pushed the dollar higher. Spot gold was stable at $1,236 per ounce while U.S. gold futures settled 0.1 percent lower at $1,237.

Traders are currently eyeing the release of minutes from the Federal Reserve's Jan. 30-Feb. 1 meeting. President Donald Trump's address to the Congress on Feb. 28, will also be eyed as analysts and traders hope that it will provide more details on infrastructure spending and tax cuts. "Gold is capped by the likelihood that U.S. monetary policy will be tighter at some stage, potentially in March," according to Societe Generale analyst Robin Bhar. Switzerland's gold exports reached a 10-month low in January, as stated in the data from the Swiss customs bureau, due to declines in shipments to China and Hong Kong.

In other metals, silver dropped 0.4 percent to $17.94 per ounce. Platinum shed 0.3 percent to $997.95 while palladium climbed 0.6 percent to $776.75.

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Fxwirepro: Aussie falls Against Major Peers As Australia’s Private Capital Expenditure Data Fails to Meet Expectations

AUD/NZD is currently trading around 1.0673 marks.

Pair made intraday high at 1.0721 and low at 1.0673 marks.

Intraday bias remains bearish till the time pair holds immediate resistance at 1.0748 marks.

A daily close below 1.0710 will take the parity down towards key supports around 1.0648, 1.0594, 1.0552, 1.0516, 1.0460, 1.0412, 1.0370, 1.0326, 1.0237, 1.0184, 1.0109 and 1.0053 marks respectively.

On the other side, a sustained close above 1.0710 will drag the parity higher towards key resistances at 1.0735/1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.

Australia’s Q4 capital expenditure increases to -2.1 % (forecast -0.4 %) vs previous -3.3 % (revised from -4 %).

Australia’s Q4 building capex decreases to -4.1 % vs previous -3.6 % (revised from -5.7 %).

Australia’s Q4 plant/machinery capex increases to 0.4 % vs previous -3 % (revised from -1.9 %).

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Dollar Recovers After Initial Fed Minutes Jolt

The dollar rebounded from overnight lows and steadied, as the market digested the minutes of the Federal Reserve's last policy meeting, which held the possibility of a March rate hike in play. The minutes of the Fed's Jan. 31-Feb. 1 meeting noted several policy makers saying that it was appropriate to hike interest rates again “fairly soon”, given that the jobs and inflation data come in line with expectations.

Dollar bulls were disappointed as they were hoping for a more hawkish tone from Fed Chair Janet Yellen. The greenback also weakened as policymakers brought up the downside economic consequences of a firmer dollar. The dollar index versus a basket of six major currencies climbed from overnight losses and was 0.15 percent higher at 101.380. The greenback dropped to a low of 112.905 yen overnight in an automatic response to the Fed minutes meeting but eventually pulled back to 113,420 for a gain of 0.1 percent.

The euro edged down 0.1 percent at $1.0548, as it retreated from a 1-½ month low of $1.094 the previous day. Sterling was flat at $1.2450 after slipping the day earlier as latest data showed that the UK business investment declined during the fourth quarter of 2016.

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Singapore Industrial Production On Tap For Friday

Singapore will on Friday release January figures for industrial production, highlighting a light day for Asia-Pacific economic activity.

Output is expected to gain 2.8 percent on month and 7.5 percent on year after spiking 6.4 percent on month and 21.3 percent on year in December.

Taiwan will see January figures for unemployment, with the jobless rate expected to ease to 3.8 percent from 3.82 percent in December.

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Trump Uncertainty Drives Bitcoin to Historic High

Bitcoin scaled a historic high as investors' risk aversion and impetus to hedge was triggered by the global uncertainty linked to President Donald Trump's policies and due to speculations that the new administration will ease regulations that governing the cryptocurrency.

The digital currency surged 3.1 percent and ended at $1,164.10 in New York trading, beating the record high of $1,137 notched in November 2013.

Prices of the e-currency has been volatile in the previous weeks. It nosedived as low as $789 earlier on January as Chinese regulators imposed stricter management and regulation of the domestic bitcoin exchanges, where global majority of bitcoin trading occurs. It has now remained above the $1,000 level for its longest-ever period, CoinDesk stated.

The latest rally was prompted by the political uncertainty stemming from President Trump's remarks and directives, analysts said. They added that the surge may be due to some investors driving digital currency prices up on hopes that the administration will loosen financial-industry rules and in turn make bitcoin more flexible to utilize.

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Australia Q4 Company Operating Profits Soar 20.1%

Company operating profits in Australia climbed a seasonally adjusted 20.1 percent on quarter in the fourth quarter of 2016, the Australian Bureau of Statistics said on Monday.

That easily beat forecasts for an increase of 8.0 percent following the 1.0 percent gain in the previous three months.

Profits spiked 26.2 percent on year.

Company inventories gained just 0.3 percent on quarter in Q4, shy of expectations for 0.5 percent and down from 0.8 percent in the three months prior.

Inventories were up 1.6 percent on year.

Sales of manufacturing goods and services added 0.1 percent on quarter but fell 2.4 percent on year.

Sales in wholesale trade gained 3.1 percent on quarter and 9.0 percent on year.

Wages and salaries dipped 0.5 percent on quarter but climbed 1.0 percent on year.

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Samsung Hints at Release of Galaxy S8 Release

Samsung Electronics Co. has hinted on the upcoming release of its Galaxy S8 smartphone and launched new tablets that target video-gamers and professionals as the firm seeks to regain ground lost after its previous disadvantage of pulling out the Note 7. The defeat cost the Korean company an estimated $6 billion and caused a severe blow to the firm.

The Galaxy Tab S3 has a 9.7 inch Amoled screen, quad-stereo speakers and allows users to play 4K video, according to Samsung ahead of the annual Mobile World Congress event in Barcelona. The Galaxy Book, is directed towards professionals, comes in with 10.6-inch and 12-inch models and runs the Windows 10 operating system. Samsung has finally confirmed a March 29 release date for the next smartphone.

For the time being, Samsung will launch the new tablets as well as a new virtual-reality viewer which the company has showed. The tablet portfolio “is built with premium technology that delivers a productive and versatile experience to consumers,” according to D.J. Koh, the head of Samsung's mobile communications business.

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Fxwirepro: South Korean Won Marginally Higher Against Euro on Robust Manufacturing Bsi Index

EUR/KRW is currently trading around 1,197 mark.

Pair made intraday high at 1,199 and low at 1,197 levels.

Intraday bias remains bearish till the time pair holds key resistance at 1,205 mark.

A daily close below 1,198 will drag the parity down towards key supports around 1,191, 1,184, 1,178 and 1,163 marks respectively.

Alternatively, a sustained close above 1,198 will take the parity higher towards key resistances around 1,205, 1,221, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.

Seoul shares open up 0.08 pct at 2087.26.

South Korea’s BOK manufacturing BSI index increases to 79 vs previous 78.

We prefer to take short position in EUR/KRW around 1,199, stop loss at 1,205 and target of 1,184.

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Dow Jones closes at 12th consecutive record high

US shares ended slightly higher while the Dow Jones ended at a 12th straight record close as traders are anticipating President Donald Trump's first speech to a joint session later on Tuesday.

Investors seek to search hints about the Trump government's policies for tax reform and easing regulations. He previously implied he wanted to beef up army spending by over 9%.

On Monday, the Dow Jones Industrial Average traded at 20,837.44, up 0.08%. The S&P 500 stood at 2,369.73, up 0.10%. The Nasdaq Composite closed at 5,886.90, up 0.28%.

The key stock indexes logged fresh record highs in the previous week but did not record advances as sturdy as the week before.

Trump's pledge of a breakthrough tax announcement helped revitalize the post-election surge, gliding the key US stocks to post new records.

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Myanmar Manufacturing PMI Jumps To 51.9 - Nikkei

The manufacturing sector in Myanmar continued to expand in February, and at a faster rate, the latest survey from Nikkei showed on Wednesday with a manufacturing PMI score of 51.9.

That was up from 51.7 in January, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, the growth was spurred by solid growth of output and new work although optimism weakened to a survey-record low.

The exchange rate fluctuations contributed to another steep rise in input costs.

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Australia Has A$1.302 Billion Trade Surplus

Australia had a seasonally adjusted merchandise trade surplus of A$1.302 billion in January, the Australian Bureau of Statistics said on Thursday.

That was shy of expectations for a surplus of A$3.80 billion and was down from A$3.334 billion in December.

Exports were down 3.0 percent on month to A$31.796, while imports advanced 4.0 percent to A$30.494 billion.

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Yahoo executives familiar with 2014 hack prior to Verizon deal

Yahoo admitted its senior executives were knowledgeable about a hack by a state-backed attacker in 2014 before it struck a $4.8 billion agreement with Verizon last summer.

Based on a probe by a separate panel, the technology company's senior officials and relevant legal staff were familiar with the incident but did not investigate it to the full extent of what was known by the firm's information security group.

It did not conclude that concealing these details was done intentionally.

Chief Executive Marissa Mayer announced she will relinquish her annual bonus and equity grant to Yahoo employees to compensate for the security breaches that took place in 2013 and 2014.

Yahoo's general counsel Ronald Bell left the company without any payoffs.

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China Services PMI Falls To 52.6 In February - Caixin

The services sector in China continued to expand in February, although at a slightly slower pace, the latest survey from Caixin showed on Friday with a PMI score of 52.6.

That was down from 53.1 in January, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.

The composite index also checked in at 52.6, up from 52.2 in the previous month.

Individually, new business picked up, while employment also expanded but at a slower pace.

Inflationary pressures continued to ease, while business sentiment ticked slightly higher.

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Dollar Firms as Investors Price in March Fed Hike

The dollar maintained its strength on Friday as the rising probability of a U.S. interest rate hike hurt appetite for sovereign bonds and commodities.

The dollar held broad gains at 114. 28 yen and bordered a peak of 114.95 versus the Japanese currency. A dollar index slipped by a fraction to 102.070 after hitting its peak level since January 11.

Hawkish remarks echoed by several influential Fed officials caused the implied probability of a move from the U.S. central bank to further tighten monetary policy during a policy meeting on March 14-15 to shoot up to 74 percent, from just 30 percent at the beginning of the week.

Market participants are expected to closely observe Fed Chair Janet Yellen and Vice Chair Stanley's speeches later on Friday whether they will reiterate the hawkish stance. But traders are already expecting the top Fed officials to stick to the same tune.

Analysts said that the markets are now locking on their bets, with the assumption that a rate hike “soon” can be as early as this March and that perhaps 3 rate hikes will be seen this year, in line with Fed's set pace of rate increases.

The rise in the greenback hurt demand for commodities which are usually traded in dollar terms.

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Fxwirepro: Eur/krw Hits Fresh 4-Week High at 1,225 Mark, Faces Strong Resistance at 1,228

EUR/KRW is currently trading around 1,224 mark.

Pair made intraday high at 1,225 and low at 1,219 levels.

Intraday bias remains bullish till the time pair holds key support at 1,221 mark.

A daily close below 1,221 will drag the parity down towards key supports around 1,207, 1,199, 1,191, 1,184, 1,178 and 1,163 marks respectively.

Alternatively, a sustained close above 1,221 will take the parity higher towards key resistances around 1,228, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.

Seoul shares open down 0.27 pct at 2073.20.

South Korea’s February FX reserves increase to 373.91 bln $.

We prefer to take short position in EUR/KRW around 1,225, stop loss at 1,235 and target of 1,205.

News are provided by InstaForex
 
U.S. Energy Sector Slides in 2017

The energy sector is the stock market's biggest failure so far this year after it showed a stellar performance the previous year, as the rest of 2017 might also be a rough period for investors due to uncertainty. Shares of energy have been weak after surging in mid-December and have been the worst-performing of the S&P 500's 11 stock sectors this year.

Producers of oil have been the weakest among energy sub-industries, due to skepticism regarding the demand outlook as well as the unexpectedly high level of crude and finished product inventories. This year, energy has declined five percent, compared to the six percent increase for the overall S&P 500. However, analysts claim that production firms might be in the best position for gains. Investors have raised their wages on the sector, around $263 million has flowed into U.S.-listed energy mutual and exchange-traded-funds this year through February, according to data from Lipper. The Energy Sector Select SPDR Fund has attracted $400 million of new investment, it said.

Energy surpassed all other sectors in 2016, up by almost 24 percent due to the late-year rally following the election of Donald Trump as U.S. president which fuelled investor hopes for industry-friendly policies. Since the election, refiners have gained over 9.5 percent, while oil producers added less than two percent, the weakest energy sub-sector.

News are provided by InstaForex
 
Fxwirepro: Aussie Marginally Higher Against Major Peers ahead of Rba’s Cash Rate Decision

AUD/NZD is currently trading around 1.0852 marks.

Pair made intraday high at 1.0856 and low at 1.0829 marks.

Intraday bias remains bullish till the time pair holds immediate support at 1.0779 marks.

A daily close below 1.0838 will take the parity down towards key supports around 1.0779, 1.0713, 1.0670, 1.0616, 1.0594, 1.0552, 1.0516, 1.0460, 1.0412 and 1.0370 marks respectively.

On the other side, a sustained close above 1.0838 will drag the parity higher towards key resistances at 1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.

RBA will release cash rate decision at 0330 GMT.

News are provided by InstaForex
 
Snap Shares Experience First Slide on Analysts’ Downgrade

Following a strong market debut, Snap Inc. fell for the first time and edged down below the opening price of $24 during its first day of public trading after analysts started expressing their stance regarding the firm's true valuation.

The Snapchat-parent prices shares in its IPO which was warmly received by the market, surging by 44% on their first day of trading due to the strong demand. Its dramatic rally continued on Friday, rising further by 11%.

However, by Monday, majority of the seven analysts who are assigned to Snap had a sell recommendation on the stock, while two adviced to hold. Data showed no analyst stamped the stock with a 'buy' rating.

An analyst at Needham & Co. said the shares were overpriced during its IPO and estimated the firm will see a declining trend in earnings and valuation adjustments in the first two years of its public trading, stating that Snap's value was actually at $19 to $23 per share. A Morningstar Inc. analyst said that the company's monetization capabilities are not as strong as its valuation implies, and priced it at $15.

Snap sank 12 percent to trade at $23.77 at the close of New York trading, bringing down its value to around 28 billion.

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