Forex News from InstaForex

HP Inc. Lifts Profit Guidance as PC, Printer Units Outperform

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HP Inc.'s sales strongly performed in the second quarter, posting growth in both PC and printer units for the first time in over five years.

The company also reported better-than-anticipated revenue on stronger consumer demand, prompting it to lift its annual profit projection. Shares of the firm climbed 3.6 percent to $19.7 in extended trading.

Revenue from the personal computer business surged 9.6 percent to $7.66 billion in the period ending April 30. The unit represents almost two-third of the firm's overall sales. The firm's printer and copier division also posted its first increase in revenue since 2011, driven partially by the strong demand for its handheld photo printer, HP Sprocket.

Total revenue jumped 6.9 percent to $12.4 billion during the second quarter, as strong consumer demand caused a 12 percent jump in laptop deliveries. Earnings before adjustments registered at 40 cents per share, marginally higher than the expected 39 cents per share.

The firm also lifted its projection for third-quarter profit that beat estimates and also raised its outlook for the entire fiscal year. Full-year adjusted profit is seen to clock in between a range of $1.59-$1.66 per share, exceeding average estimates of $1.62 per share.

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Fxwirepro: Usd/thb Hits Fresh 5-Week Low at 34.27 Mark, Bias Remains Bearish


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USD/THB is currently trading around 34.28 marks.

It made intraday high at 34.34 and low at 34.27 marks.

Intraday bias remains bearish till the time pair holds key resistance at 34.48 marks.

On the top side, key resistances are seen at 34.48, 34.55, 34.67, 34.74, 34.82, 34.97, 35.11, 35.20, 35.32, 35.42, 35.62, 35.74, 35.84, 35.93, 36.01, 36.08 and 36.39 marks respectively.

Alternatively, a daily close below 34.34 will drag the parity down towards key supports around 34.14 and 34.02 marks respectively. Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.

Yesterday BOT released interest rate decision.

Thailand’s Central Bank kept policy rate unchanged at 1.50 pct (poll 1.50 pct). We prefer to take short position in USD/THB around 34.30, stop loss at 34.48 and target of 34.02.

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Japan Producer Prices Rise 0.7% In April

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Producer prices in Japan were up 0.7 percent on year in April, the Bank of Japan said on Friday.

That was shy of expectations for an increase of 0.9 percent, and was down from 0.8 percent in March.

On a monthly basis, producer prices dipped 0.2 percent after jumping 0.6 percent in the previous month.

Prices for advertising, insurance and engineering all were down, while prices were up for communications and leasing.

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Gold Prices End Lower as Dollar Stabilizes

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Gold Prices eased as the dollar pulled away from lows and steadied, while world stock markets reached fresh highs, reversing some gains from the prior session when U.S. Federal Reserve meeting minutes indicated it is more cautious on pulling the trigger on another rate hike.

Spot gold ended ended down 0.2 percent at $1, 255.91 per ounce, while U.S. gold futures ended up 0.3 percent at $1, 256 .50.

Economists anticipate the gold's resilience to fluctuate in the following weeks, citing hints in the Fed minutes that further monetary policy tightening is on the table as early as June.

Minutes of the May policy meeting showed policymakers generally agreed that they should postpone raising rates until it is sure that a recent U.S. economic slump is only transitory. Despite the cautious tone, majority of the rate-setting committee said a hike is coming soon.

Federal fund futures indicated traders are pricing in an 83 percent odds of a quarter percentage point rate hike during the Fed's june meeting.

Bets for U.S. interest rates to increase next month and possibly rise once more in the year have helped kept gold prices under $1,300.

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Fitch: Interest Rate Risk Main Threat for Japanese Life Insurers

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Interest rate risk is likely to remain the primary threat for Japanese traditional life insurers, as a majority of the country's life insurers will be unable to lengthen asset duration due to persistently low bond yields, says Fitch Ratings in a new report.

Fitch expects that Japan's life insurers will aim to secure a buffer against the interest rate risk by continuing to strengthen their capitalisation through retained earnings and accumulated reserves.

The agency also expects Japan's life insurers to maintain sufficient capital adequacy for their credit ratings, partly backed by their continuous issuance of hybrid debt; which is used to make large overseas acquisitions to take advantage of the extremely low global bond yields and investor appetite for yield.

The agency saw an improvement in the economic solvency ratios of insurers that disclosed the ratio for the financial year ending March 2017 (FYE17), helped by a steeper yield curve compared with the previous financial year. Consolidated profits of Japanese life insurance groups are also likely to remain strong, boosted by solid earnings growth from international insurance following some acquisitions of US-based life insurers.

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Lenovo Turns to Pricier Models to Stop Bleeding in its Smartphone Business

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Chinese multinational technology firm Lenovo Group Ltd is currently relying on a push upmarket to stop the losses incurred in its smartphone business following its acquisition of Motorola three years ago.

The company announced that it will reorganize its China business which is aimed at sharpening the PC brand's consumer focus amid the effort to strengthen its mobile branding and also shift the focus to more expensive models under the Moto brand.

The group's smartphone concerns began after it acquired Motorola Mobility from Google for $2.9 billion back in 2014 but have since then struggled to integrate the assets. Although the company returned to profit in the year to March, the group's phone problems worsened as marketing expenses for new products and key components costs increased.

In its home base of China, Lenovo's shipments have domestically dropped 80 percent year-on-year or 55 percent quarter-on-quarter during the first three months of 2017, according to Canalys data.

However, shipments in Brazil climbed 56 percent in the first quarter of this year according to Lenovo, exceeding India as its largest market, where volumes rose 34 percent.

Chairman Yang Yuanqing said Lenovo is poised to reach its goal of turning around the mobile business by the second half of the fiscal year starting in April. He added that the company will also have three more telecom partners in the U.S. in 2017 as its performance in Western Europe continues to improve.

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Announcement: Moody's: New Zealand's 2017 Budget Highlights Fiscal Flexibility and Shock Absorption Capacity

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Moody's Investors Service says that New Zealand's (Aaa stable) budget for the fiscal year ending June 2018 (2017 budget) demonstrates very strong public finances, underpinned by ongoing fiscal discipline and robust economic growth prospects, providing the government with significant fiscal flexibility to buffer potential shocks.

Ahead of the September election, Moody's expects the broad consensus on fiscal discipline, regardless of the party in power, will continue to deliver on the goals of maintaining budget surpluses and reducing debt in the coming years, a credit positive commitment.

Moody's conclusions are contained in its in-depth report "Government of New Zealand: 2017 Budget Highlights Fiscal Flexibility, Credit-Positive Commitment to Increasing Surpluses and Reducing Debt".

In its budget, the government maintains its commitment to increasing fiscal surpluses, which Moody's expects will help reduce gross government debt towards 28% of GDP by 2018, significantly lower than the median for Aaa-rated sovereigns.

The government's track record of fiscal prudence affords it significant fiscal policy flexibility, such that it can fund spending on new measures like the Family Incomes Package while maintaining fiscal surpluses.

Additionally, the government's commitment to resuming contributions to the Superannuation Fund in the fiscal year ending June 2021 (FY 2020-21) will help limit the future fiscal burden from an aging population and support public finances in the longer run.

Finally, the increase in the Earthquake Commission levy will help rebuild the depleted Natural Disaster Fund and boost the sovereign's ability to counter disaster-related shocks.

Moody's expects robust population growth, strong Asian demand for New Zealand dairy, tourism and education and solid investment spending to support real GDP growth of around 3.0% in 2017 and 2018, broadly consistent with the government's projections.

New Zealand will be among the fastest growing Aaa-rated economies in coming years, says Moody's. The government's robust fiscal position and prospects for it to strengthen provide ample room to pursue expansionary fiscal policy to buffer the economy against potential future shocks.

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Euro Weighed Down by Greece Bailout as Stocks Retreat

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The euro slipped on Tuesday following a media report that revealed prospects of Greece relinquishing its next bailout payment if creditors fail to meet a debt relief deal. Asian stocks continue to trade in thin volume due to holidays in some regional markets, the United States and the U.K.

The common currency fell 0.2 percent to $1.1136 in its third session in a row of declines following a German press report which stated that Athens might forego its next bailout payment.

Eurozone finance ministers have yet to reach an agreement with the International Monetary Fund regarding Greek debt relief to release fresh loans to Athens however, it did come close enough to do both at their meeting next month.

"The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro-zone," according to James Woods, global investment analyst at Rivkin in Sydney.

Other factors that added pressure on the euro were European Central Bank President Mario Draghi reiterating the need to extend stimulus as well as the possibility of an early elections in Italy.

European blue-chip stocks dropped 0.2 percent the previous day, as Italy's banking index tumbled 3.4 percent, its largest loss in almost four months, after two banks sought help to cover a capital deficit.

MSCI's broadest index of Asia-Pacific shares excluding Japan was little changed early on Tuesday.

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Japan Industrial Output Rises 4.0% In April

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Industrial output in Japan advanced 4.0 percent on month in April, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading.

That was shy of expectations for an increase of 4.2 percent following the 1.9 percent decline in March.

On a yearly basis, industrial production climbed 5.7 percent - again missing forecasts for a gain of 6.1 percent following the 3.5 percent increase in the previous month.

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Wall Street Retreats as S&P, Nasdaq Ends 7-Day Winning Streak

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U.S. stocks finished lower on Tuesday, as tech's gains were not enough to keep the S&P and Nasdaq from breaking a seven-day winning streak. Investors priced in key economic data while weakness in the energy and financial sectors added pressure.

The Dow Jones industrial average dropped 0.24 percent to end at 21,029.47, with Goldman Sachs leading losses and Verizon was the best performer. The S&P 500 fell 0.12 percent to 2,412.91, as energy led seven sectors down while telecommunications was the largest gainer. The Nasdaq Composite shed 0.11 percent to finish at 6,203.19.

The energy sector's 1.31 percent decline made it the worst performer among the major S&P 500 sectors. Shares of Exxon fell 0.6 percent.

Financial stocks, which slipped 0.8 percent, also weighed on the S&P 500. JPMorgan dropped 1.7 percent while Bank of America fell 1.4 percent.

Telecoms rose 1.4 percent following an upgrade from MoffettNathanson to “neutral” from “underweight”, citing a lack of negative near-term catalysts.

The technology sector climbed 0.31 percent, lifted by advances in Apple and Microsoft, both rising 0.6 percent.

Amazon gained 0.1 percent at $996.70, after briefly hitting the $1,000 mark. Alphabet's Class A followed suit by touching a record of $997.62 before closing the session 0.3 percent higher at $996.17.

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Japan Capex Jumps 4.5% In Q1

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Capital spending in Japan was up 4.5 percent on quarter in the first three months of 2017, the Ministry of Finance said on Thursday.

That beat forecasts for an increase of 4.0 percent following the 3.8 percent gain in the previous three months.

Excluding software, capex climbed 5.2 percent - again exceeding expectations for 4.1 percent and up from 3.3 percent in Q4.

Company profits surged 26.6 percent after jumping 16.9 percent three months earlier, while company sales climbed 5.6 percent - up from 2.0 percent in Q4.

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Wall Street Flat as Defensive Stocks Rise, Financials Slip

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Wall Street was flat on the final trading day of May, as a decline in the financials sector counterbalanced gains in defensive plays. The tech-heavy Nasdaq gained 2.5 percent in May and touched a seven-month winning streak, its longest since 2013.

The Dow Jones industrial average slipped 0.1 percent to end at 21,008.65, as Goldman Sachs led losses while Pfizer was the best performer. The S&P 500 fell 0.05 percent to close at 2,411.80, as financials led four sectors down while utilities outperformed. The Nasdaq Composite shed 0.08 percent to 6,198.52.

Financials rallied over 20 percent in the aftermath of the U.S. presidential election on prospects of fiscal stimulus and deregulation under President Donald Trump. However it is currently struggling. The sector is 0.3 percent lower on the year.

JPMorgan blamed lower volatility for the 15 percent loss in trading revenue in the second quarter compared to 2016. Bank of America said trading revenue in the current quarter is poised to be 10 to 12 percent off than the previous year.

Shares of JPMorgan fell 2.1 percent and Bank of America slipped 1.9 percent, as both weighed on the S&P 500 the most. Goldman Sachs tumbled 3.3 percent, adding the most pressure on the Dow.

Defensive plays like utilities rose 0.46 percent while telecoms gained 0.35 percent. Energy stocks dropped 0.4 percent as oil prices notched a three-week low.

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China Imposes Tighter Cybersecurity Law

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China has started enforcing its new cybersecurity law overseeing data gathering, amid backlash and concerns from the global community.

Essentially, the new law is requiring companies to maintain collated client information within China. Entities need to secure approval before transmitting these details outside the Asian country.

The decree, ratified in November by the country's legislative body, intends to strengthen the security of the Internet and data in response to the increasing number of firms which collect and review such details to either render services or create business plans.

Foreign entities requested for delaying the implementation of this legislation, but it did not push through. Chinese officials and non-Chinese companies are awaited to discuss the new law soon.
 
Australia Q1 Inventories Jump 1.2% On Quarter

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Inventories in Australia were up a seasonally adjusted 1.2 percent on quarter in the first three months of 2017, the Australian Bureau of Statistics said on Monday.

That beat forecasts for a rise of 0.5 percent following the 0.3 percent gain in the previous three months.

Inventories were up 2.5 percent on year. Company operating profits advanced 6.0 percent on quarter - also exceeding expectations for 5.0 percent but down from 20.1 percent in the three months prior.

Profits were up 39.7 percent on year.

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Dollar Nurses Losses after Weak U.S. Data, Pound Slips after London Attacks

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The dollar came close near a seven-month low touched after latest U.S. jobs growth in May fell short of expectations while terror attacks in London which left nearly seven people dead and 48 injured ahead of the national election dented the sterling.

The dollar index against a basket of six major currencies touched its lowest level since the November election. It last stood little changed in early Asian trading at 96.736, but not far from Friday's low of 96.654, its weakest since Nov. 9.

The sterling inched down, under pressure after the third terrorist attack in Britain. It fell as much as 0.3 percent against the dollar. Sterling trimmed losses to trade 0.2 percent lower at $1.2871 early on Monday.

The pound was battered over the past two weeks with polls showing a tightening race, which raises the possibility of a hung parliament. Leveraged clients await the results of new polls taken after the incident, according to a trader.

The greenback was stable at 110.40 yen, after slipping 0.8 percent on Friday.

The U.S. 10-year Treasury yield was at 2.1547 on Monday, having dropped from Thursday's close of 2.217 before the jobs data was released.

The euro was down 0.1 percent to $1.12745 on Monday, holding on to most of Friday's 0.6 percent gain.

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New Zealand Building Volume Slides 3.5% In Q1

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The total volume of building in New Zealand was down a seasonally adjusted 3.5 percent on quarter in the first three months of 2017, Statistics New Zealand said on Tuesday.

That misses forecasts for a gain of 0.3 percent following the downwardly revised 1.3 percent increase in the previous three months (originally 1.9 percent).

Residential building activity shed 0.8 percent on quarter, while non-residential building activity skidded 7.2 percent.

The value of building work on new homes was NZ$2.7 billion in Q1.

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Treasury Yields Jumps Amid Mixed Economic Data

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U.S. government bond yields rallied amid a string of data that did not help clarify U.S. economic prospects after a disappointing jobs report helped trim growth expectations.

The 10-year Treasury note yield advanced 2.2 basis points to 2.182 percent. Despite its rally, the benchmark yield's closing was still its lowest close this year. Yield on the two-year note rose 1.8 basis point to 1.308 percent, while the yield on the 30-year bond or the long bond advanced 3.1 basis point to 2.840 percent.

The movement in yields came after the ISM services index for May slid to 56.9 percent against the 57.5 percent seen in the previous month. However, April's reading marked a 12-year high and the index continued to be above the adjusted annual average of 55.9 percent.

Another report showed that U.S. productivity growth during the first quarter of the year was revised upward from 0.6 percent, indicating that economic data in Q1 was not as soft as initially reported.

In the last few weeks, muted economic data, underlined by a dismal May nonfarm payrolls report, has barely discouraged investors from betting a June rate hike. Traders are now wagering in a 95.8 percent odds of a rate increase during the Fed's next policy meeting, based on the Chicago Mercantile Exchange's FedWatch tool.

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Australia Manufacturing Sector Picks Up Steam In May - AIG

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The construction sector in Australia continued to expand in May, and at a faster rate, the latest survey from the Australian Industry Group revealed on Wednesday with a Performance of Construction Index score of 56.7.

That's up sharply from 51.9 in April, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

It also marks the fastest rate of expansion in more than two and a half years.

Individually, apartment building saw the biggest jump, although house building fell back into contraction.

Engineering construction and commercial construction were firmly in expansion territory.

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Macy’s Warning Triggers Retail Sector Selloff

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Macy's finance chief Karen Hoguet cautioned analysts that the department store's gross margin might continue to erode in February, triggering renewed panic in the already struggling retail sector.

Hoguet warned that gross margins of the retailer would decline by around 1 percent in its current quarter compared to the same period a year prior. She added that it will drop less than 1 percent for the full fiscal year.

In February, the firm said it expected margin declines but did not specify the level of the drop. It assured that it is not downgrading its sales and profit targets and looks to make up the difference via cost-cutting and efforts to enhance the performance of its stores.

The executive said margins are under pressure because Macy's is taking a longer time than expected to get rid of surplus inventory. She also noted that Macy's was experiencing the impact of increased promotions of beauty products and stagnant watch sales.

The comments caused Macy's shares to tumble 8.2 percent to trade at $21.90, the company's lowest close in over six years. The remarks also triggered a selloff in the sector, underlining the sector's fragility. Other retailers were dragged down by the dim guidance, as J.C. Penney Co., Kohl's Group, Nordstrom Inc., Target Corp. and Wal-Mart Stores Inc. all experienced declines during the session.

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Japan Overall Bank Lending Climbs 3.2% In May

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Overall bank lending in Japan was up 3.2 percent on year in May, the Bank of Japan said on Thursday - coming in at 513.269 trillion yen.

That topped expectations for an increase of 3.0 percent, which would have been unchanged from the April reading.

Excluding trusts, bank lending was up an annual 3.3 percent to 446.592 trillion yen. That also beat forecasts for 3.0 percent, which would have been unchanged.

Lending from foreign banks gained 2.9 percent on year to 66.676 trillion yen after rising 2.8 percent in the previous month.

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