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US stock market closes higher, Dow Jones gains 1.01%

At the close on the New York Stock Exchange, the Dow Jones rose 1.01%, the S&P 500 index rose 1.12%, the NASDAQ Composite index rose 2.03%.

The leading gainer among the components of the Dow Jones index today was Boeing Co, which gained 6.59 points or 3.74% to close at 182.87. Walmart Inc rose 3.99 points or 2.60% to close at 157.22. American Express Company rose 4.05 points or 2.31% to close at 179.59.

The biggest losers were JPMorgan Chase & Co, which shed 4.24 points or 3.22% to end the session at 127.30. The Travelers Companies Inc rose 1.23 points (0.67%) to close at 183.71, while 3M Company gained 0.08 points (0.05%) to close at 148. .66. Leading gainers among the S&P 500 index components in today's trading were American Airlines Group, which rose 10.62% to 18.95, Gap Inc, which gained 8.23% to close at 14.46, and shares of Host Hotels & Resorts Inc, which rose 8.12% to end the session at 19.70.

The biggest losers were AbbVie Inc, which shed 4.19% to close at 158.95. PayPal Holdings Inc fell 2.85% to 105.17.

Leading gainers among the components of the NASDAQ Composite in today's trading were Kaleido Biosciences Inc, which rose 75.06% to hit 0.30, Antares Pharma Inc, which gained 49.20% to close at 5.58, and also shares of Veru Inc, which rose 42.86% to close the session at 14.30.

The drop leaders were NanoString Technologies Inc, which shed 33.63% to close at 21.87. Shares of Polarityte Inc lost 30.84% and ended the session at 0.27. Quotes Crown Electrokinetics Corp. decreased in price by 19.63% to 1.31.

On the New York Stock Exchange, the number of securities that rose in price (2463) exceeded the number of those that closed in the red (778), while quotes of 110 shares remained practically unchanged. On the NASDAQ stock exchange, 2,913 companies rose in price, 955 fell, and 226 remained at the level of the previous close.

Shares of Antares Pharma Inc surged to a high of 49.20% or 1.84 points to close at 5.58. Veru Inc surged to a 52-week high, up 42.86% or 4.29 points to close at 14.30.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 10.06% to 21.82.

Gold futures for June delivery added 0.10%, or 1.90, to $1.00 a troy ounce. In other commodities, WTI crude for May delivery rose 3.72%, or 3.74, to $104.34 a barrel. Futures for Brent crude for June delivery rose 4.09%, or 4.28, to $108.92 a barrel.

Meanwhile, on the Forex market, EUR/USD rose 0.58% to hit 1.09, while USD/JPY edged up 0.24% to hit 125.64.

Futures on the USD index fell 0.39% to 99.90.

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CHINA HOUSE PRICE DATA DUE ON FRIDAY

China will on Friday release March figures for its house price index, headlining a light day for Asia-Pacific economic activity. In February, house prices were up 2.0 percent on year.

Finally, several of the regional markets are closed for Good Friday, including Australia, New Zealand, Singapore, Hong Kong and Indonesia - while Thailand remains shuttered for the Songkran Festival.

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Bitcoin (BTC) will not fall below $24,500

Bitcoin is declining for the second week in a row under the influence of the negative dynamics of the stock market. The main decline in BTC last week occurred on Monday against the backdrop of a noticeable drawdown in US stock indices.

The leaders of the world's largest crypto exchanges, interviewed by CNBC, said that they have recently noticed signs of a "crypto thaw", expressed in a changing attitude towards cryptocurrencies from governments.

The Central Bank of Portugal granted the bank the country's first license to work with crypto assets. Bison Bank has become the first bank in Portugal to offer custody and trading services for cryptocurrencies for large clients.

Tesla CEO Elon Musk said recently that he intends to buy Twitter. Cardano founder Hoskinson suggested that Musk join forces to create a decentralized social network if Twitter refuses the deal.

The 12th DOGE cryptocurrency will become the most used cryptocurrency for online payments, said Robinhood CEO Vlad Tenev. However, to do this, developers must increase the speed of transaction processing.

The Ministry of Finance of the Russian Federation finalized the draft law on mining and circulation of digital assets. The government of the Russian Federation submitted to the State Duma a draft law on the taxation of digital assets by three types of taxes.

The creator of the Stock-to-Flow (S2F) model PlanB believes that bitcoin will no longer fall to $24,500. His optimism regarding the asset remains unchanged. According to PlanB, BTC could reach $100,000 by the end of the year.

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Digital Yuan: checkmate for USD in the next 50 years

The cryptosphere is invading most sectors of the global economy, primarily financial. Virtual money is being developed in a number of countries. China has become the leader in this issue, where the crypto yuan is being tested. At the moment, China's digital money is looking for ways to compete with American ones.

Currently, China's virtual currency, known as the digital yuan (e-CYN or e-yuan), is under development. The electronic means of payment is issued by the People's Bank of China (PBC). Now the digital version of China's fiat currency is being tested in 20 cities of the country. This year, China's electronic money became available for use by foreigners for the first time.

The development of the innovative currency of the People's Republic of China did not attract much attention, because "it was in the shadow of the Russian-Ukrainian conflict," said Kyle Bass, manager of the hedge fund Hayman Capital Management. According to the analyst, the release and introduction of crypto yuan is "the biggest threat to the West over the past 50 years." Bass urges markets not to ignore this fact, but, if possible, to create a similar financial instrument capable of reflecting the negative impact of e-CYN.

According to the investor, the full-fledged introduction of Chinese digital money outside the country will lead to the collapse of the world economy. In such a situation, Beijing will be able to attract certain groups of foreigners and convince them to use e-CYN. These include citizens who are experiencing financial difficulties and are prone to corruption. "This gives China the opportunity to bribe everyone and everyone in the world who succumbs to corruption. Such a development threatens national security and leads to digital authoritarianism," says Bass.

The current situation worries American lawmakers who are developing regulatory documents limiting the influence of the digital yuan. In May 2021, members of the American Congress introduced the "Law on Dollars of the XXI century". According to this document, the US Treasury Department should include in the report to Congress any risks to the USD associated with the digital yuan.

This year, this issue has not lost its relevance. In March 2022, Senator Marsha Blackburn and representatives of the Republican Party introduced the "Say No to the Silk Road" law. If it is adopted, the US Department of Commerce will need to report on all transactions with the electronic yuan. The bill also provides for notifying citizens traveling to China "about the dangers of the digital yuan."

The US authorities are concerned about the potential competition of e-yuan with the digital dollar. Against this background, the role of innovative developments of virtual currency has grown dramatically. According to the Atlantic Council think tank, more than 80 countries, including the United States, are planning to issue state-controlled digital assets (CBDC). Earlier, US President Joe Biden stated the exceptional importance of research and development in the field of CBDC. The release of innovative means of payment "meets the national interests," the head of the White House stressed.

According to Bass, the goal of China's global deployment of the electronic yuan is to reduce dependence on the US currency. "The majority of global transactions (87%) carried out by China are conducted in dollars," the investor notes. Against this background, the Chinese authorities have set a course for de-dollarization. One of the ways to overcome it is the introduction of a digital means of payment. Another variant of the anti–dollar strategy is the use of China's fiat currency in trade settlements with some countries, in particular with Russia. Such actions cause serious damage to the USD hegemony, experts believe. However, the full triumph of digital e-CYN is still far away, although the first steps in this direction have already been taken.

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Bitcoin has risen sharply in price after a loud fall the day before

At the auction on Tuesday, the value of the first cryptocurrency shows a steady growth of 6%. At one point digital gold has jumped the $41,400 mark.

Throughout the day, the virtual asset market was recovering after a spectacular decline the day before. Yesterday, bitcoin collapsed to $38,500, updating the local low in mid-March, but today the coin has easily won back the fall.

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According to Binance, the largest exchange in terms of trading volume of virtual assets, over the past 24 hours BTC has gained 5.83% in value and is trading at $41,480. % - up to $41,504.

Since the beginning of April, the quotes of the first cryptocurrency have been below market forecasts amid negative events in world markets, as well as the conflict between Russia and Ukraine. So, during the current month, bitcoin has already fallen in price by almost 9%.

According to the results of the first quarter of 2022, the cost of digital gold lost 1.5%. At the same time, the past March was a rather favorable period for the asset, as a result of which it reported growth by 10%, having strengthened for the second consecutive month.

Recall that bitcoin lost more than 16% in January, and its price increased by 12% in February.

The BTC updated its historical record in November 2021, soaring above $69,000. Since then, the cryptocurrency has moved into a steady decline.

According to the results of the past year, the cost of bitcoin increased 1.6 times - to $46,200 from $28,900.

Experts call the Russian-Ukrainian conflict the main downward factor for the digital currency market today. Analysts are confident that the sooner the tense geopolitical situation begins to stabilize, the more confident the digital asset market will feel in the short term. After reaching peace agreements, the economy will need to be restored, which will require a lot of money. One of the components of this tangible amount of funds will be cryptocurrency. In this case, the digital asset market will receive a spectacular impetus and rush to growth.

On Tuesday, the leading altcoins from the top 10 by capitalization willingly adopted the trend of the main virtual asset and also began to effectively increase in price. As a result, over the past 24 hours, the Ethereum token has grown by 4.5%, Solana by 6%, and Terra by 14%.

According to the world's largest virtual asset data aggregator CoinGecko, over the past day, the total capitalization of the crypto market has grown by 4.5% to $1.89 trillion.

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USD/CAD: Loonie is confused by ups and downs and looks to the downside, then to the upside

The Canadian dollar started the week on the rise, and ends it in some confusion. After disappointing macro statistics and another round of inflation, the loonie significantly fell. However, the loonie is trying to "keep face" and is looking for ways out of this situation.

The Canadian dollar strengthened against the US dollar in the middle of the week, reaching 1.2584. However, after four days of growth, the USD/CAD pair showed a downward momentum, retreating from the local high at 1.2644. To date, the pair is struggling to hold its positions, but is determined to catch up. On Thursday, April 21, the USD/CAD pair traded at 1.2480, leaning to the downside and upside from time to time.

The "loonie" was tripped up by the growing inflation recorded in Canada. According to current data, consumer inflation in the country accelerated to 6.7% in March, exceeding forecasts. Recall that this figure was 5.7% in February. Against this background, the Bank of Canada is interested in raising interest rates above current levels. The central bank's immediate goals are to curb inflation without provoking a recession in the economy.

The pressure on the USD/CAD pair is exerted by the growing US currency. According to analysts, the resistance to the dollar is draining the loonies. In the future, the loonie will sink even more in relation to the greenback, however, it will strengthen against the euro.

The Canadian currency was supported by the increase in the key rate by the Bank of Canada (by 50 bp) recorded last week. In addition, the central bank announced the start of quantitative tightening in response to accelerating inflation.

The Canadian economy got a head start thanks to rising prices for commodities and energy. This contributes to the decisive actions of the Bank of Canada, aimed at normalizing monetary policy. The country's economy is on the winning side compared to other states that are importers of energy and hydrocarbons. In such a situation, the CAD receives tripartite support: from a significant influx of money into the country, from the growth of business activity and the potential tightening of the central bank's monetary policy.

According to experts, galloping inflation is a weighty argument for further tightening of monetary policy by the Bank of Canada. The implementation of such a scenario will strengthen the position of the Canadian dollar in the medium term. In such a situation, experts recommend holding short positions on the USD/CAD pair with a target of 1.2450.

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Dollar remains a financial shield, and the euro is afraid of collapse, not wanting to be overboard

The European currency, the greenback's rival for the EUR/USD pair, is still in limbo.

The dollar has had an impressive rally this month, which is now gradually slowing down. The catalyst for this was the decline in the yield of 10-year treasuries, the growth of which stalled near 3%. To date, long-term US Treasuries have tested zero for the first time since 2020.

The American currency is supported by two powerful drivers - the expectation of an early rise in interest rates by the Federal Reserve and the Russian-Ukrainian conflict. Earlier, Mary Daly, the head of the San Francisco Fed, confirmed the central bank's plans to bring the rate to 2.5% by the end of 2022. According to the FOMC representative, an increase in interest rates by 50 bps is possible "at several Fed meetings." James Bullard, President of the Federal Reserve Bank of St. Louis, agrees with this opinion. The politician allows the central bank to raise the rate by 75 bp at once. Recall that the head of the Fed of St. Louis is in the forefront of the Fed in the issue of aggressively raising rates in order to curb inflation.

Despite the local weakening of the US currency, it retains a strong potential for growth. In addition to expectations of an early rise in the Fed rate and the launch of a quantitative tightening program, the USD is supported by the risk aversion of traders. Experts attribute the decline in risk appetite to the sliding of the global economy into recession.

The greenback shows caution against this background, maintaining its strength, but not demonstrating it. The greenback rose slightly against the euro on Thursday evening, April 21, reaching 1.0847. The EUR/USD pair was cruising near 1.0815 on the morning of Friday, April 22, trying not to slide to the bottom.


According to experts, the current mood in the currency markets is positive for the US currency, which cannot be said about the European one. According to the calculations of Nordea economists, at the end of 2022, the EUR/USD pair will be near 1.1000, and over the next three months it will test the 1.0500 mark.

The catalyst for the recent rally of the EUR/USD pair was the hawkish comments of the European Central Bank leaders. According to Martins Kazaks, a representative of the central bank, an increase in the key rate is possible in July. The policy was supported by Luis de Guindos, vice-president of the ECB, who expects the QE program to be curtailed in the specified month.

The current vulnerability of the euro is fueled by the prolonged Russian-Ukrainian conflict. The tension in relations between Europe and Russia increases uncertainty in the dynamics of the euro and calls into question the economic prospects of the eurozone.

As for the dynamics of the dollar, the Russian-Ukrainian conflict, on the contrary, played into the hands of the latter. At the same time, experts are confident that the current geopolitical confrontation will affect the European economy more than the American one. Against this background, on the wave of growth, the greenback returned to pre-pandemic levels, maintaining the status of a reliable protective asset.

The USD was strengthened by the expectation of an economic recovery in the United States, capable of outstripping that in other countries. The implementation of such a scenario will allow the Fed to begin the cycle of monetary tightening faster. However, there are pitfalls here, the main one of which is the high risk of recession in the US economy. A sharp drop in the purchasing power of American households can slow down economic growth in the United States. Adding fuel to the fire is the likelihood of an aggressive tightening of the Fed's monetary policy.

As for the prospects of the European economy and the euro, they will improve only if the geopolitical conflict is offset. However, this is still far away, as the euro is in a situation in which something bad could happen to it at any time and it is seriously worrying the markets. According to Thomas Mayer, former chief economist at Deutsche Bank, the euro is rapidly losing stability. According to the analyst, the European Union is threatened by prolonged inflation, the result of which will be the "destruction of the euro." At the same time, the ECB continues to print banknotes, but does nothing to normalize the economy, Mayer believes. According to the expert, strong inflation in the eurozone threatens negative long-term economic and social consequences.

Earlier, Alexandre del Valle, a French political scientist and economist, announced the possible collapse of the euro. The analyst paid special attention to anti-Russian sanctions that could push the single currency and the eurobloc economy into the abyss. Del Valle accused the White House of pushing the European Union to tighten sanctions and abandon Russian energy carriers, stressing that these measures would lead "to the collapse of the euro and an explosion in prices." At the same time, the United States imposes its shale gas on the Europeans, which is more expensive than Russian LNG.

The current situation is undermining the positions of the EUR/USD pair. However, experts are counting on the relative stability of the pair in the medium term. According to ING bank economists, in the coming months the EUR/USD pair will consolidate in a wide range of 1.0500-1.1000. In 2023, the existing monetary trends will not lose relevance. The Fed is expected to approach the peak of monetary tightening, and the ECB will continue its hawkish monetary cycle, albeit at a slower pace. The implementation of such a scenario will allow the EUR/USD pair to strengthen to 1.1600 and remain in this range during 2023, Nordea Bank believes.

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EUROPEAN ECONOMICS PREVIEW: GERMANY IFO BUSINESS CONFIDENCE DATA DUE

Business confidence survey data from Germany is due on Monday, headlining a light day for the European economic news.

At 3.00 am ET, the Turkish Statistical Office releases manufacturing confidence survey data for April. In the meantime, Spain producer prices data is due for March. Prices had increased 40.7 percent year-on-year in February.

At 4.00 am ET, the ifo Institute is scheduled to issue Germany's business climate survey report for April. Economists expect the sentiment index to fall to 89.1 from 90.8 in the previous month.

At 5.00 am ET, eurozone construction output is due from Eurostat.

At 6.00 am ET, the Confederation of British Industry publishes Industrial Trends survey results. The order book balance is seen at 21 in April versus 26 in March.

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EUROPEAN ECONOMICS PREVIEW: GERMANY IFO BUSINESS CONFIDENCE DATA DUE

South Korea's gross domestic product was up a seasonally adjusted 0.7 percent on quarter in the first three months of 2022, the Bank of Korea said in Tuesday's advance estimate.

That exceeded expectations for an increase of 0.6 percent following the 1.2 percent expansion in the previous three months.

On a yearly basis, GDP rose 3.1 percent - again beating forecasts for 2.8 percent and down from 4.2 percent in the three months prior.

Real gross domestic income increased 0.6 percent on quarter and 0.1 percent on year.

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AUSTRALIA INFLATION JUMPS 5.1% ON YEAR IN Q1

Consumer prices in Australia climbed 5.1 percent on year in the first quarter of 2022, the Australian Bureau of Statistics said on Wednesday - beating forecasts for an increase of 4.6 percent and accelerating from 3.5 percent in the previous three months.

On a quarterly basis, inflation jumped 2.1 percent - again exceeding expectations for a gain of 1.7 percent and up from 1.3 percent in the three months prior.

The Reserve Bank of Australia's trimmed mean came in at 1.4 percent on quarter and 3.7 percent on year, up from 1.0 percent on quarter and 2.6 percent on year in the previous quarter.

The RBA's weighted median was up 1.0 percent on quarter and 3.2 percent on year after rising 0.9 percent on quarter and 2.7 percent on year three months earlier.

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EUROPEAN ECONOMICS PREVIEW: GERMANY FLASH INFLATION DATA DUE

Flash inflation from Germany and economic confidence survey results from eurozone are due on Thursday, headlining a busy day for the European economic news.

At 2.00 am ET, Statistics Sweden releases quarterly GDP data and retail sales figures for the first quarter. The economy is expected to shrink 0.5 percent sequentially, in contrast to the 1.1 percent expansion in the fourth quarter.

At 3.00 am ET, Spain's INE is scheduled to issue flash consumer prices and unemployment data. EU harmonized inflation is expected to ease to 9 percent in April from 9.8 percent in March.

In the meantime, economic confidence survey data from Sweden and Turkey are due.

Half an hour later, Sweden's central bank announces its monetary policy decision. The bank is expected to hold its repo rate at zero percent.

At 4.00 am ET, business and consumer confidence survey results are due from Italy.

At 5.00 am ET, the European Commission is scheduled to issue Euro area economic confidence survey data for April. The economic sentiment index is forecast to fall to 108.0 from 108.5 in March.

At 8.00 am ET, Destatis publishes Germany's flash consumer and harmonized inflation data for April. Consumer price inflation is expected to ease marginally to 7.2 percent from a record 7.3 percent in March.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE GDP DATA DUE

First quarter national accounts for the euro currency bloc as well as from several member states including Germany, France, Spain and Italy are due on Friday, headlining a busy day for the European economic news.

At 1.30 am ET, the French statistical office Insee releases GDP data and consumer spending for March. The economy is forecast to grow 0.3 percent in the first quarter, slower than the 0.7 percent expansion seen in the preceding period.

At 2.00 am ET, import prices data from Germany is due. Import price inflation is seen at 28.6 percent in March versus 26.3 percent in February.

At 2.45 am ET, France statistical office Insee publishes consumer and producer prices. Consumer price inflation is forecast to remain unchanged at 4.5 percent in April.

At 3.00 am ET, Spain's INE releases quarterly GDP and retail sales data. Economists expect the economic growth to slow to 0.5 percent in the first quarter from 2.2 percent in the fourth quarter of 2021.

At 4.00 am ET, quarterly national accounts data from Germany and Italy are due. The largest eurozone economy is forecast to grow 0.1 percent in the first quarter, reversing a 0.3 percent fall a quarter ago. Italy's GDP is expected to fall 0.2 percent after an expansion of 0.6 percent.

Also, monetary aggregates data is due from the European Central Bank.

At 5.00 am ET, Eurostat is set to release flash GDP and inflation figures. The eurozone is expected to log a steady growth of 0.3 percent in the first quarter. Inflation is expected to climb further to another record 7.5 percent in April from 7.4 percent in March.

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JAPAN MANUFACTURING SECTOR SLOWS IN APRIL - JIBUN

The manufacturing sector in Japan continued to expand in April, albeit at a slower rate, the latest survey from Jibun Bank showed on Monday with a manufacturing PMI score of 53.5.

That's down from 54.1 in March although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The lower reading of the headline index was partly the result of a softer rise in new orders. Sales increased for the seventh month running, though growth eased to a milder pace overall. Firms commented that growth was held back by delivery delays and the Russia-Ukraine war. Geopolitical tensions and rising COVID-19 cases in China continued to weigh heavily on export orders, which fell solidly for the second month running.

Production levels increased for the second successive month in April, with the rate of growth little-changed from March. Firms linked the expansion to rising new orders, though difficulty securing inputs had prevented an acceleration in growth.

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SOUTH KOREA INFLATION JUMPS 4.8% ON YEAR IN APRIL

Consumer prices in South Korea were up 4.8 percent on year in April, Statistics Korea said on Tuesday.

That exceeded expectations for an increase of 4.4 percent and was up from 4.1 percent in March.

On a seasonally adjusted monthly basis, consumer prices rose 0.7 percent - again topping forecasts for an increase of 0.4 percent and unchanged from the previous month's reading.

Core CPI, which excludes volatile costs of food, was up 0.4 percent on month and 3.1 percent on year - accelerating from 0.1 percent on month and 2.9 percent on year a month earlier.

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VIETNAM MANUFACTURING PMI UNCHANGED AT 51.7 IN APRIL - S&P

The manufacturing sector in Vietnam continued to expand in April at a steady pace, the latest survey from S&P Global showed on Wednesday with a manufacturing PMI score of 51.7.

That's unchanged from the March reading remains above the boom-or-bust line.

Both output and employment returned to growth in April, after having dropped during March. In both cases, firms benefited from falls in COVID-19 case numbers following the peak of the latest wave in March. The improved pandemic situation enabled employees to return to work, while there were also widespread reports of recruitment. In fact, the rate of job creation was the fastest for a year.

Rising capacity helped firms to expand output and take advantage of strengthening customer demand. Output increased for the sixth time in the past seven months.

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AUSTRALIA MARCH TRADE SURPLUS A$9.314 BILLION

Australia posted a merchandise trade surplus of A$9.314 billion in March, the Australian Bureau of Statistics said on Thursday.

That topped expectations for a surplus of A$8.5 billion and was up from A$7.457 billion in February.

Imports fell A$1.949 billion or 5.0 percent A$40.139 billion, driven by decreases in imports of processed industrial supplies.

Exports fell A$72 million (0 percent) to A$49.453 billion, driven by falls in exports of non-monetary gold and cereal grains and cereal preparations.

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EUROPEAN ECONOMICS PREVIEW: GERMANY INDUSTRIAL OUTPUT DATA DUE

Industrial production data from Germany is due on Friday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is scheduled to issue Germany's industrial production for March. Economists forecast output to fall 1.0 percent on month, reversing a 0.2 percent rise in February.

In the meantime, UK Halifax house price data is due. Prices are expected to gain 0.7 percent in April after rising 1.4 percent in March. Also, Sweden industrial production and orders are due.

At 3.00 am ET, Spain's INE is set to issue industrial output figures for March. Output growth is seen easing to 2.7 percent from 3.0 percent in February.

At 4.00 am ET, Italy's Istat publishes retail sales for March. Sales had increased 0.7 percent in February.

At 4.30 am ET, UK S&P/CIPS construction Purchasing Managers' survey data is due. Economists expect the index to fall to 58.0 in April from 59.1 in March.

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JAPAN SERVICES SECTOR EXPANDS IN APRIL - JIBUN BANK

The services sector in Japan swung into expansion territory in April, the latest survey from Jibun Bank revealed on Monday with a services PMI score of 50.7.

That's up from 49.4 in March and it moves above the boom-or-bust line of 50 that separates expansion from contraction.

While the lifting of remaining restrictions aided the recovery in activity, stronger growth was held back by uncertainty linked to the Ukraine war, however. Total new business, meanwhile, fell for the third time in four months in April, albeit only marginally.

Service providers commonly attributed this to weaker domestic orders amid concerns about the outbreak of war and potential spill-over effects of rising COVID-19 cases in China. Growth in markets outside Asia however, contributed to the first rise in foreign demand for the first time since last December, and at the quickest rate for two-and-a-half years.

The survey also showed that the composite index improved to 51.1 in April from 50.3 in March.

The positive reading was the second in successive months and the strongest recorded since last December. Services firms reported a renewed rise in activity, while manufacturers signaled an unchanged, moderate rate of expansion.

Aggregate new orders stagnated in April, however, amid a renewed fall at service providers and softer growth at manufacturers. As a result, weaker new business inflows eased pressure on private sector capacity and allowed firms to work through outstanding business which fell for the third time in four months.

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EUROPEAN ECONOMICS PREVIEW: GERMANY ZEW ECONOMIC CONFIDENCE DATA DUE

Economic sentiment survey data from Germany is due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Norway releases consumer and producer prices for April. Inflation is expected to rise to 4.7 percent from 4.5 percent in March.

At 3.00 am ET, consumer prices and retail sales figures are due from the Czech Republic. Economists expect inflation to climb to 13.2 percent in April from 12.7 percent in March.

Also, unemployment from Turkey and consumer prices from Hungary are due.

At 4.00 am ET, Italy's Istat publishes industrial output figures for March. Production is forecast to fall 1.9 percent on month, reversing a 4.0 percent rise in February.

At 5.00 am ET, Germany's ZEW economic confidence survey results are due. The economic sentiment index is seen at -42.0 in May versus -41.0 in April. In the meantime, the Hellenic Statistical Authority releases Greece consumer price figures for May.

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CHINA CONSUMER PRICES CLIMB 2.1% ON YEAR IN APRIL

Consumer prices in China were up 2.1 percent on year in April, the National Bureau of Statistics said on Wednesday.

That exceeded expectations for an increase of 1.8 percent and was up from 1.5 percent in March.

On a monthly basis, inflation rose 0.4 percent - again beating forecasts for a gain of 0.2 percent following the flat reading from the previous month.

The bureau also said that producer prices spiked 8.0 percent on year, beating expectations for a gain of 7.7 percent but slowing from the 8.3 percent increase a month earlier.

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