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European Markets Climb as Retailers Soar

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European stocks advanced for the second time in three days as a rally in financial service firms and retailers counterbalanced drops in oil and gas companies.

The Stoxx Europe 600 Index closed 0.2 percent higher. It slipped 0.3 percent in muted trading on Tuesday, extending declines in the final minutes before closing.

Retailers bounced 0.9 percent and financial services firms reported their largest gain in nearly three weeks. Energy shares dropped the most in the index while oil fell for the first time in nine days.

Investors were focused on the minutes from the Federal Reserve meeting. According to Fed fund futures, traders are implying at least seven odds of a rate hike in December.

Among shares active on corporate new, Persimmon rose 2.4 percent as the company expects its first-half operating margin to “comfortably exceed” that of the preceding six months.

Drugmaker GlaxoSmithKline fell 0.2 percent after a downgrade to neutral from buy at Citigroup. Novartis dropped 0.3 percent after it was downgraded to underperform from neutral at Credit Suisse.

Electricite de France tumbled 1.3 percent after HSBC Holdings slashed its ratings, saying recent gains have gone too far. Enagas fell 0.8 percent after Deutsche Bank trimmed its rating to hold from buy.

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Wall Street Drops Amid a Rise in Global Bond Yields

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U.S. stocks fell on Thursday as technology stocks dropped amid an increase in global bond yields. The S&P 500 market its largest one-day decline since May 17.

In recent week, government bond yields have increased as central banks indicated that the end of monetary stimulus is approaching.

The Dow Jones Industrial Average dropped 0.74 percent to 21,320.04. The S&P 500 fell 0.94 percent to 2,409.75 while the Nasdaq Composite lost one percent to 6,089.46, weighed down by losses in technology and biotech shares.

UnitedHealth, Walt Disney, 3M and Apple added the most pressure on the Dow.

Energy closed 1.8 percent lower as the second-worst performer in the S&P 500. Shares of Newfield Exploration, Apache and Noble Energy were among the largest decliners.

Consumer-discretionary shares fell one percent in the S&P 500. Victoria's Secret L Brands, which posted a loss in same-store sales for June, tumbling 14% to $46.49.

The S&P 500 health-care sector dropped 1.3 percent. Shares of medical-supplies Patterson Cos fell 6.9 percent to 44.15, reporting its sharpest one-day percentage loss in the sector, after brokerage Stifel Nicolaus downgraded its rating for the stock from hold to sell.

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Japan Labor Cash Earnings Rise More Than Forecast

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Total labor cash earnings in Japan increased for the second straight month in May, and at a faster-than-expected pace, preliminary report from the Ministry of Health, Labor and Welfare showed Friday.

Gross earnings rose 0.7 percent year-over-year in May, faster than the 0.5 percent climb in April. Economists had expected a 0.4 percent gain for the month.

Contractual gross earnings also grew 0.7 percent annually in May, while special cash earnings dropped by 1.6 percent.

Real cash earnings went up 0.1 percent in May after remaining flat in the preceding month.

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Japan Overall Bank Lending +3.3% On Year

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Overall bank lending in Japan was up 3.3 percent on year in June, the Bank of Japan said on Monday - standing at 513.772 trillion yen.

That exceeded expectations for a gain of 3.2 percent, which would have been unchanged from the May reading.

Excluding trusts, bank lending also was up an annual 3.3 percent to 446.927 trillion yen. That was unchanged and in line with expectations.

Lending from trusts was up 2.8 percent on year to 66.844 trillion yen after rising 2.9 percent a month earlier.

Lending from foreign banks climbed 9.1 percent to 2.085 trillion yen - slowing from 13.1 percent in May.

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Apollo to Acquire ClubCorp for $1.1 billion

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Private equity firm Apollo Global Management LLC announced it will acquire ClubCorp Holdings Inc, which is the biggest owners and operators of private golf and country clubs in the United States, for $1.1 billion.

Apollo said it will pay $17.12 a share in cash for ClubCorp, a 30.7 percent premium over its closing price on Friday, but less than the 12-month peak of $17.50, the shares touched in February, on investor expectations that a sale process that was initially posted by Reuters in January will be successful.

Dallas-based ClubCorp also announced a one-time dividend of 13 cents a share that will be paid later this month. It said the sale to Apollo is seen to close in the fourth quarter of this year.

ClubCorp has been a sequential acquirer in the golf industry, as it bought dozens of courses in the last three years. KSL Capital, another private equity firm, procured ClubCorp for $1.8 billion in October 2006 and took it in public in 2013.

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PETROBRAS: Company To Sell Fuel Distribution Assets In Paraguay

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Petrobras intends to sell its stake in companies that distribute and sell fuels, cooking gas and lubricants in Paraguay. Ita? BBA was hired to be the financial advisor of the potential divestment.

The transaction will involve the subsidiaries Petrobras Paraguay Distribuci?n Limited, Petrobras Paraguay Operations and Logistics and Petrobras Paraguay Gas.

Petrobras, through the companies listed above, has a network of 197 service stations and 113 convenience stores and is also present in the aviation sector, operating in three airports. The company is also the largest fuel distributor in the country. Regarding logistics, it owns a distribution terminal, in the city of Villa Elisa.

According to the company, the fuel distribution assets it owns in Paraguay were purchased from Shell and had their brand image improved since then.

Petrobras will accept offers from distributors with at least 50 stations operating in Paraguay, or with consolidated revenues of at least US$ 200 million. Trading companies can also bid for the assets, as long as they have at least one representative office in South America and reported net revenue of at least US$ 200 million per year.

The companies invited by Petrobras to buy the assets should show interest in the transaction until July 24.

In June, Petrobras said that it would start a divestment process to sell 30 assets until the end of this year, and added that it would disclose half of those assets in the next three months.

The assets are part of a US$ 21 billion sale plan for 2017 and 2018. According to Pedro Parente, Petrobras, chairman, the Pasadena Refinery, in the United States, will be among these assets.

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British Consumers Spend More on Essentials as Inflation Climbs

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UK consumers spent more money on food and other essentials in June but cut back on less urgent purchases amid growing prices, according to two sets of industry figures.

Payments firm Barclaycard said year-on-year consumer spending growth softened to a 15-month low of 2.5 percent in June from 2.8 percent in May, while spending on household goods and entertainment also slowed.

According to the British Retail Consortium, its gauge of retail spending growth climbed to 2.0 percent in June from 0.2 percent in May, above its average of 1.4 percent in the previous six months.

However, BRC's chief executive, Helen Dickinson, said the pick-up emulated a temporary boost from warmer weather lifting clothing sales, along with the higher costs of food.

On a like-for-like basis, the BRC said sales rose by 1.4 percent year-on-year following a 0.4 percent decline in May.

Both figures from Barclaycard and BRC are not adjusted for inflation, which is running at an almost four-year peak of 2.9 percent as stated in the consumer price index. Therefore, the contribution of consumer spending to second-quarter economic growth could be limited.

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Australia Consumer Confidence Rebounds In July - Westpac

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Consumer confidence in Australia saw a positive bounce in July, the latest survey from Westpac Bank showed on Wednesday - advancing 0.4 percent to a score of 96.6.

That follows the 1.8 percent decline in June to a reading of 96.2.

The July reading snapped three months of decline.

The index is not sending encouraging signals about the outlook for consumer spending, the bank said.

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Amazon.com On Track to Break Sales Record

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Amazon.com Inc said its Prime Day sale is poised to be the largest shopping event in its history by sales. The world's biggest online retailer said customers ordered over three times as many Echo-family speakers than the previous year's Prime Day, which at the time broke records for Amazon devices.

Third-party sellers have sold over 50 percent more items on the site by noon compared with the same timeframe in 2016, according to a statement by Amazon.

Analysts estimated the previous year's event had brought in more than $500 million.

The news highlights Amazon's rapid pace of growth as more shoppers ordered online rather than going to stores.

Customers had to join Amazon Prime to get discounts in the 30-hour event. U.S. members of the club pay $99 a year for benefits like two-day shipping, and they tend to buy more goods, more often from Amazon. A timer showing when the deals will expire has encouraged shoppers to buy more.

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ARGENTINA: Merval Rises 0.61% Underpinned By Petrobras Brasil

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Merval, the benchmark Argentinean stock market index, gained 0.61%, closing at 22,262.64 points, boosted by rising oil prices after data showed a decrease in US inventories.

Petrobras Brasil increased by 4.61% in Buenos Aires after news that Brazilian former President Luiz Inacio Lula da Silva was sentenced to 9 years in prison for corruption.

Marcos Forquera, an analyst at Buenos Aires Valores, said that the stock market had a positive start today, but profit-taking hit a few shares, leading to a weaker rise at the end of the day.

He warned that Merval is near its record high and that market uncertainty is on the rise ahead of the October legislative elections in Argentina, increasing the odds of a sharp correction in the Buenos Aires Stock Exchange.

Meanwhile, the locally traded US dollar fell by 0.30%, to 16.94 Argentinean pesos. According to Fernando Izzo, an analyst at ABC Mercado de Cambio, the decline was a result of lower demand for the greenback and dollar sales from grain exporters.

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Dollar Flat After Yellen Statement, Canadian Dollar Held Firm

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The dollar was relatively flat early on Thursday after Federal Reserve Chair Janet Yellen did not deliver a much hawkish tone as many had initially expected. The Canadian dollar held firm near a 13-month peak after the Bank of Canada raised interest rates for the first time since 2010.

The greenback fell as Yellen's comments spurred a sharp drop in U.S. Treasury yields.

The dollar index versus a basket of major currencies was little changed at 95.758 after pulling back to as low as 95.511 the day earlier, its weakest in 12 days.

The U.S. currency edged up 0.2 percent at 113.440 yen after falling nearly 0.7 percent overnight, when it retreated from a four-month peak near 114.495 touched earlier in the week on expectations of U.S.-Japan monetary policy divergence.

The Canadian dollar, also supported by an increase in crude oil prices, was at C$1.2750 a dollar, after rallying over one percent to C$1.2681 overnight, its highest since June 2016.

The BOC increased interest rates for the first time in almost seven years, claiming the economy was no longer in need of as much stimulus.

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Singapore GDP Expands 2.5% On Year In Q2

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Singapore's gross domestic product advanced 2.5 percent on year in the second quarter of 2017, the Ministry of Trade and Industry said in Friday's advance estimate.

That follows the 2.5 percent increase in the previous three months.

On a quarterly annualized, seasonally adjusted basis, GDP added 0.4 percent after sinking 1.9 percent in the three months prior.

The manufacturing sector expanded 8.0 percent on year in the first quarter, moderating from the 8.5 percent growth in the previous quarter.

Growth was supported mainly by the electronics and precision engineering clusters, the ministry said, which saw robust expansion on the back of strong external demand for semiconductors.

It added 2.4 percent on quarter, up from 0.4 percent in Q1.

The construction sector contracted 5.6 percent on year after sliding 6.1 percent in the three months prior.

The sector was weighed down by weakness in both private and public sector construction, the bureau noted.

On a quarterly basis, the sector climbed 4.3 percent after contracting 14.4 percent in the previous three months.

The services producing industries added 1.7 percent on year after gaining 1.4 percent in the first quarter.

Growth was supported primarily by transportation, storage and business services.

On a quarterly basis, the sector added 0.4 percent after contracting 2.7 percent in the three months prior.

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Oil Prices Stabilizes on Solid Chinese Demand

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Oil prices were steady as China's strong appetite for fuel eased worries of an ongoing supply overhang.

Brent crude futures traded at $47.75 per barrel, rising by 1 cent from their last settlement. Meanwhile, U.S. WTI crude futures traded at $45.48 per barrel, falling 1 cent from the previous session's close.

China imported 212 million tonnes of crude oil, equivalent to 8.55 million bpd from January to June of the year. This is up 13.8 percent during the same period last year, according to customs data, making china the biggest importer of crude products ahead of the U.S.

The solid demand from China allayed worries regarding an ongoing fuel supply glut.

On Wednesday, OPEC said that the world would require 32.20 million bpd of crude from its producer members next year, down 60, 000 bpd from the current year, as consumers have increasing options of supply from outside the cartel. But the group also said its output climbed by 393, 000 bpd in June to 32.611 million bpd, with gains led by Nigeria and Libya.

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BRAZIL: IMF Increases GDP Growth Forecast For 2017, Cuts 2018 Estimate

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The International Monetary Fund (IMF) raised Brazil's economic growth forecast for this year but reduced its expansion estimate for 2018, highlighting the political uncertainty in the country.

According to the IMF, the Brazilian Gross Domestic Product (GDP) should rise by 0.3% in 2017 and 1.3% in 2018. In April, the growth forecasts were at 0.2% and 1.7%, respectively. "The severe Brazilian economic recession seems to be nearing an end," IMF said in the report.

In the medium term, according to the IMF, Brazil's GDP should move to an annual expansion of 2%, although the recent increase in political instability could hurt the economy's predictability.

"The government's ability to deliver on social security reform, a necessary step toward securing fiscal sustainability, has become more uncertain - and, with national elections scheduled for 2018, the window for legislative action is closing," the Fund said.

Regarding inflation, the IMF projects that it will remain below the 4.5% target for this year and next. The slowdown in inflation, according to the Fund, should make room for more monetary easing.

"After almost two years of being above the ceiling of the central bank's tolerance range of 6.5 percent, inflation has declined rapidly over the past year. The impact of large increases in regulated prices in 2015 has dissipated, while a widening output gap, an appreciating exchange rate, declining inflation expectations, and a favorable shock to food prices have combined to speed disinflation since late 2016," IMF said in its report.

Nevertheless, the Fund stresses that political instability and the impact of corruption investigations are the primary sources of risks for Brazil, which could jeopardize reforms and economic recovery.

The IMF considers possible that the pension reform will be weakened or postponed until after the next presidential election. On the external side, the tightening of global financial conditions and a slowdown in China's economy are the main threats to Brazilian economic growth.

The Fund also mentions Brazil's flexible exchange rate and the high level of international reserves - at $ 365 billion at the end of last year, above the level deemed adequate by the IMF - as positive highlights.

The health of the Brazilian banking sector has also improved. "Despite the recession, profits before taxes have surged due to high interest margins and lower funding costs. To limit increases in nonperforming loans, banks have continued renegotiating the terms of loans and writing off delinquent loans," noted the Fund.

In order for Brazil to enter sustainably on a growth path, the IMF recommends that the government guarantee fiscal sustainability through the consolidation of public finances and pension reform. The Fund also stressed the importance of spending control and drew attention to the debt of the Brazilian states, suggesting that the federal government must continue to seek coordinated solutions to solve the problem.

On monetary policy, the Fund recommends that the Central Bank reduce the interest rate, although it considers that the institution has taken appropriate decisions so far. For the IMF, the Central Bank must constantly monitor the evolution of inflation and improve its communication and measures to alleviate distortions in the credit market.

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Hammond Warns of Brexit Uncertainty's Impact

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Chancellor Philip Hammond told BBC that firms are postponing their investments in the UK due to the uncertainty regarding Brexit.

Hammond's comments came as a Confederation of British Industry (CBI) survey indicated that 42 percent of UK firms believe Brexit has affected their investment plans, prompting the business group to call on the government to swiftly secure a future EU trade deal.

He said that businesses are holding off from putting more money in the country until they see more clarity regarding the future relationship of the UK with the Europe will look like.

He said that government ministers were becoming increasingly resolved that there is a need for a transitional deal in order to avoid shaking up business conditions too much as the UK withdraws from the EU.

He noted that five weeks ago the concept of a transition period was relatively new, but not the majority of the cabinet now sees the need for some kind of transition period.

The second round of Brexit talks will occur on Monday in Brussels.

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European Markets Mixed but Mining Shares Rise

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European stocks closed mixed as investors priced in upbeat Chinese data and paid attention to earnings, while mining shares rose.

The pan-European Stoxx 600 climbed less than two points at 386.86, trimming its gains as most major European stocks moved lower. London's FTSE 100 rose 0.22 percent, France's CAC 40 fell 0.14 percent and Germany's DAX 30 lost 0.41 percent. Last week, the Stoxx 600 advanced 1.8 percent, the biggest gain since early May.

The upbeat second quarter gross domestic product reading released overnight from China helped boost bullish sentiment.

Advances in the basic materials group were led by mining stocks, which were supported following China's stronger than expected data. Data from China, a major consumer of industrial and precious metals, also revealed strengthening in industrial production and retail sales.

Weir Group led gains on the Stoxx 600 with advances of over eight percent after the company said it sees full-year revenue to exceed analysts' estimates.

Telenor was the second biggest advancer, rising almost eight percent as the Norwegian telecommunications firm increased its margin forecasts for this year after posting a solid second quarter.

European energy stocks traded mixed while financial stocks were under pressure.

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Australia New Motor Vehicle Sales Gain 1.2% In June

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The total number of new motor vehicle sales in Australia was up a seasonally adjusted 1.2 percent on month in June, the Australian Bureau of Statistics said on Tuesday - coming in at 102,275.

That follows the 3.1 percent jump in May.

Sales for passenger vehicles added 0.5 percent, along with sports utility vehicles (1.4 percent) and other vehicles (1.3 percent).

The largest upward movement across all states and territories was in the Northern Territory (2.8 percent),

On a yearly basis, sales advanced 3.6 percent, slowing from 5.3 percent in the previous month.

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South Korea PPI Slips 0.4% In June

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Producer prices in South Korea were down 0.4 percent on month in June, the Bank of Korea said on Wednesday following the 0.3 percent contraction in May.

Individually, prices for agricultural, forestry and marine products fell 1.2 percent on month, while manufacturing products shed 0.6 percent, and services and utilities were unchanged.

On a yearly basis, prices advanced 2.8 percent after rising 3.4 percent in the previous month.

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Wall Street Mostly Higher as Nasdaq Ends at Record Peak

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U.S. equities finished mostly higher on Tuesday as investors priced in more corporate quarterly reports. The Nasdaq reported its eighth session in a row of advances, the longest streak since its 10-day string in February 2015.

The Dow Jones industrial average dropped 0.25 percent at 21,574.73, weighed down by Goldman Sachs. The index tumbled over 150 points at its session lows.

The S&P 500 rose 0.06 percent at 2,460.61, a record closing peak with information technology leading gainers. The Nasdaq composite climbed 0.5 percent at 6,344.31, a record peak. The index touched an intraday record and an eight-day winning streak, its longest since February 2015.

Goldman Sachs added the most losses on the Dow after posting a 40 percent decline in second-quarter bond trading revenue. It's top and bottom-line quarterly results exceeded Wall Street expectations.

Netflix jumped over 13 percent to an all-time peak. The American entertainment company said it added 5.2 million total memberships in its second quarter. Facebook also reached a record intraday high.

Bank of America reported quarterly results which exceeded expectations. Its stock, however, was weighed down by a sharp loss in trading revenue.

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