Home Blog

New Zealand Q2 GDP Gains 0.5% On Quarter, 2.1% On Year

0

New Zealand’s gross domestic product was up a seasonally adjusted 0.5 percent on quarter in the second quarter of 2019, Statistics New Zealand said on Thursday.

That exceeded expectations for an increase of 0.5 percent although it slowed from 0.6 percent in the first quarter.

On an annualized yearly basis, GDP climbed2.1 percent – again beating forecasts for 2.0 percent and slowing from 2.5 percent in the three months prior.

Growth was led by the services industries, which grew 0.7 percent following a 0.3 percent growth in the March 2019 quarter. Primary industries also rose 0.7 percent, following two consecutive declines. Goods-producing industries fell 0.2 percent this quarter, following a 1.9 percent rise in the March 2019 quarter.

“Service industries, which represent about two-thirds of the economy, were the main contributor to GDP growth in the quarter, rising 0.7 percent off the back of a subdued result in the March 2019 quarter,” national accounts senior manager Gary Dunnet said.

The size of New Zealand’s economy in annual current price terms hit a milestone in the June 2019 quarter, reaching NZ$300 billion for the first time.
“It took about fourteen years for the economy to go from NZ$100 billion to NZ$200 billion, and nine years to reach $300 billion,” Dunnet said.

Household spending grew 0.5 percent in the June 2019 quarter, following a 0.4 percent rise in the March 2019 quarter. Spending on durable goods increased by 0.8 percent, while household spending on services rose 0.5 percent. Spending on non-durable goods remained flat in the quarter.

Investment in fixed assets dropped 1.0 percent in the June 2019 quarter, following 2.7 percent growth in the March 2019 quarter. This was largely due to lower investment in non-residential building, which fell 3.7 percent. The fall was partially offset by a 2.1 percent increase in investment in plant, machinery, and equipment.

GDP per capita increased 0.2 percent in the June 2019 quarter, following an increase of 0.1 percent in the March 2019 quarter. For the June 2019 year, GDP per capita was up 0.8 percent.

The material has been provided by InstaForex Company – www.instaforex.com

New Zealand GDP Rises 0.5% On Quarter, 2.1% On Year

0

New Zealand’s gross domestic product expanded a seasonally adjusted 0.5 percent on quarter in the second quarter of 2019, Statistics New Zealand said on Thursday.

That exceeded expectations for an increase of 0.5 percent although it slowed from 0.6 percent in the first quarter.

On an annualized yearly basis, GDP climbed2.1 percent – again beating forecasts for 2.0 percent and slowing from 2.5 percent in the three months prior.

Growth was led by the services industries, which grew 0.7 percent following a 0.3 percent growth in the March 2019 quarter. Primary industries also rose 0.7 percent, following two consecutive declines. Goods-producing industries fell 0.2 percent this quarter, following a 1.9 percent rise in the March 2019 quarter.

The material has been provided by InstaForex Company – www.instaforex.com

*New Zealand GDP +0.5% On Quarter, +2.1% On Year In Q2

0
Stock Exchange Data Investment Workplace Concept

New Zealand GDP +0.5% On Quarter, +2.1% On Year In Q2

The material has been provided by InstaForex Company – www.instaforex.com

Australia Unemployment Data Due On Thursday

0
Stock Market Growth On Screen

Australia will on Thursday release August figures for unemployment, highlighting a modest day for Asia-Pacific economic activity.

The jobless rate is predicted to hold steady at 5.2 percent, with an increase of 15,000 jobs following the gain of 41,100 jobs in July.

Japan also will see July results for its all industry activity index, with forecasts calling for an increase of 0.2 percent on month following the 0.8 percent contraction in June.

New Zealand will provide Q2 numbers for gross domestic product, with forecasts suggesting an increase of 0.4 percent on quarter and 2.0 percent on year. That follows the 0.6 percent quarterly increase and the 2.5 percent yearly gain in the three months prior.

The central bank in Indonesia will wrap up its monetary policy meeting and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate unchanged at 4.75 percent.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Surges Higher After Fed Rate Decision, Comments

0

The U.S. dollar surged higher and gained against most major currencies on Wednesday after the Federal Reserve stopped short of hinting at future easing even as it cut interest rates by 25 basis points at the conclusion of their two-day monetary policy meeting.

The dollar index rose to 98.69 after the Fed announcement and was last seen at 98.60, up 0.35% from previous close.

Against the Euro, the dollar strengthened to 1.1015 but subsequently pared some gains as it eased to 1.1029, still up by a solid 0.4%.

Against pound sterling, the dollar rose to 1.2465, gaining nearly 0.3%.

The Japanese yen weakened to 108.46 a dollar, losing 0.32%.

The dollar gained nearly 0.4% against the loonie, at 1.3294. Against Swiss franc, the dollar was up 0.45% at 0.9976, while against Aussie, it was up 0.55%, with the Aussie-Dollar pair quoting at 0.6828.

The Federal Reserve today cut rates by 25 basis points as widely expected, lowering the target range for the federal funds rate to 1-3/4 to 2%.

The central bank attributed the cut to the implications of global developments for the economic outlook as well as muted inflation pressures.

The much anticipated accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2% objective.

Shortly after the announcement, U.S. President Donald Trump tweeted, “Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!”

Data released by the Labor Department Wednesday morning showed new residential construction in the U.S. showed a substantial rebound in the month of August. The report said housing starts soared by 12.3% to an annual rate of 1.364 million in August after slumping by 1.5% to a revised rate of 1.215 million in July.

Economists had expected housing starts to surge up by 5% to a rate of 1.250 million from the 1.191 million originally reported for the previous month.

The Commerce Department said building permits also spiked by 7.7% to an annual rate of 1.419 million in August after jumping by 6.9% to a revised rate of 1.317 million in July.

The material has been provided by InstaForex Company – www.instaforex.com

Oil Futures Settle Sharply Lower For 2nd Straight Day

0

Crude oil prices drifted lower on Wednesday, extending losses to a second straight session, after having climbed sharply higher on Monday amid an escalation in geopolitical tensions after the drone attacks on Saudi’s oil facilities.

Oil’s decline on Wednesday was due to the data showing an increase in U.S. crude stockpiles last week and a sooner than expected recovery in Saudi Arabia’s output levels.

West Texas Intermediate Crude oil futures for October ended down $1.23, or about 2.1%, at $58.11 a barrel.

On Tuesday, WTI crude oil futures for October plunged $3.56, or 5.7%, to 59.34 a barrel, a day after soaring more than $8 a barrel.

Data released by the Energy Information Administration Wednesday morning showed crude inventories in the U.S. rose by 1.06 million barrels in the week ended September 13, compared with expectations for a drawdown of 2.5 million barrels.

Gasoline inventories were up by 780,000 barrels last week, as against forecasts for a drop of 540,000 barrels. Meanwhile, distillate stockpiles increased by 440,000 barrels, compared with forecasts for a rise of 535,000 barrels.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world’s top oil exporter would ensure full oil supply commitments to its customers this month.

Meanwhile, U.S. President Donald Trump President Donald Trump revealed in a post on Twitter on Wednesday that he has ordered Treasury Secretary Steven Mnuchin to impose additional sanctions on Iran.

The announcement follows the attacks on Saudi Arabian oil facilities over the weekend, with the U.S. pointing the finger at Iran.

“I have just instructed the Secretary of the Treasury to substantially increase Sanctions on the country of Iran!” Trump tweeted.

Trump previously indicated the U.S. was prepared to respond militarily but stopped short of definitively blaming Iran for the attacks.

The material has been provided by InstaForex Company – www.instaforex.com

Treasuries Pull Back Off Best Levels But Close Modestly Higher

0

After an early move to the upside, treasuries gave back some ground after the Federal Reserve’s monetary policy announcement on Wednesday but remained modestly higher.

A late-day advance helped bond prices to close in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.6 basis points to 1.786 percent.

Treasuries pulled back off their best levels after the Fed revealed its widely expected decision to cut rates by another 25 basis points, lowering the target range for the federal funds rate to 1-3/4 to 2 percent.

The latest rate cut was once again attributed to the implications of global developments for the economic outlook as well as muted inflation pressures.

The accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The Fed did acknowledge in its latest statement that exports have weakened along with business fixed investment, although the central bank noted household spending has been rising at a strong pace.

The decision to cut rates was widely expected by economists but was not without dissent from members of the Federal Open Market Committee.

The FOMC voted 7 to 3 to lower rates by 25 basis points, with St. Louis Fed President James Bullard preferring a 50 basis point cut and Kansas City Fed President Esther George and Boston Fed President Eric Rosengren preferring to leave rates unchanged.

The Fed’s economic projections suggest that the meeting participants are also divided about the outlook for interest rates.

While seven participants expect another rate cut before the end of year, five expect rates to remain unchanged and another five expect rates to be raised back to 2 to 2-1/4 percent.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

Today’s modest rate cut was not well received by President Donald Trump, who recently urged the Fed to lower interest rates to zero or less

“Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!” Trump tweeted shortly after the announcement.

Fed Chairman Jerome Powell said in his post-meeting press conference that the central bank is prepared for a more “extensive sequence of rate cuts” in the face of an economic downturn but noted that is not currently expected.

Powell also told reporters that he does not foresee the Fed using negative interest rates as a policy tool, as Trump has suggested.

“If we were to find ourselves at some future date again at the effect of a lower bound, again not something we are expecting, then I think we would look at using large scale asset purchases and forward guidance,” Powell said.

Trading on Thursday may continue to be impacted by reaction to the Fed announcement, although reports on weekly jobless claims, existing home sales and Philadelphia-area manufacturing activity may also attract attention.

The material has been provided by InstaForex Company – www.instaforex.com

Gold Settles Modestly Higher Ahead Of Fed Rate Decision

0
Businessman checking stock market online

Gold futures settled modestly higher on Wednesday, extending gains to a third successive session. However, prices edged lower after the Federal Reserve cut interest rate by 25 basis points.

A fairly steady dollar limited gold’s uptick. The dollar index, which was trading marginally above the flat line for much of the session till the Fed announced its rate decision, rose notably higher after that, advancing to 98.69.

Gold futures for December ended up $2.40, or 0.2%, at $1,515.80 an ounce, after having advanced to $1,519.50 a little before noon.

On Tuesday, gold futures for December settled with a gain of $1.90, or about 0.1%, at $1,513.40 an ounce.

Silver futures for December ended down $0.221, at $17.919 an ounce, while Copper futures for December settled at $2.6130 per pound, down $0.0140 from previous close.

Data released by the Labor Department Wednesday morning showed new residential construction in the U.S. showed a substantial rebound in the month of August. The report said housing starts soared by 12.3% to an annual rate of 1.364 million in August after slumping by 1.5% to a revised rate of 1.215 million in July.

Economists had expected housing starts to surge up by 5% to a rate of 1.250 million from the 1.191 million originally reported for the previous month.

The Commerce Department said building permits also spiked by 7.7% to an annual rate of 1.419 million in August after jumping by 6.9% to a revised rate of 1.317 million in July.

Building permits, an indicator of future housing demand, had been expected to drop by 2.7% to a rate of 1.300 million from the 1.336 million originally reported for the previous month.

The Federal Reserve cut rates by 25 basis points as widely expected, lowering the target range for the federal funds rate to 1-3/4 to 2%.

The Fed attributed the cut to the implications of global developments for the economic outlook as well as muted inflation pressures.

The much anticipated accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2% objective.

Shortly after the announcement, U.S. President Donald Trump tweeted, “Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!”

The material has been provided by InstaForex Company – www.instaforex.com

*Fed Chairman Powell Holding Post-Meeting Press Conference

0
Businessman using tablet analyzing sales data and economic growth graph chart. Business strategy. Abstract icon. Stock market. Digital marketing.

Fed Chairman Powell Holding Post-Meeting Press Conference

The material has been provided by InstaForex Company – www.instaforex.com

Fed Cuts Rates As Expected But Leaves Outlook Murky

0

After lowering interest rates for the first time in over a decade in late July, the Federal Reserve announced another interest rate cut following a two-day monetary policy meeting that ended on Wednesday.

The Fed revealed its widely expected decision to cut rates by another 25 basis points, lowering the target range for the federal funds rate to 1-3/4 to 2 percent.

The latest rate cut was once again attributed to the implications of global developments for the economic outlook as well as muted inflation pressures.

The accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The Fed did acknowledge in its latest statement that exports have weakened along with business fixed investment, although the central bank noted household spending has been rising at a strong pace.

The decision to cut rates was widely expected by economists but was not without dissent from members of the Federal Open Market Committee.

The FOMC voted 7 to 3 to lower rates by 25 basis points, with St. Louis Fed President James Bullard preferring a 50 basis point cut and Kansas City Fed President Esther George and Boston Fed President Eric Rosengren preferring to leave rates unchanged.

The Fed’s economic projections suggest that the meeting participants are also divided about the outlook for interest rates.

While seven participants expect another rate cut before the end of year, five expect rates to remain unchanged and another five expect rates to be raised back to 2 to 2-1/4 percent.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

Today’s modest rate cut was not well received by President Donald Trump, who recently urged the Fed to lower interest rates to zero or less

“Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!” Trump tweeted shortly after the announcement.

Federal Reserve Chairman Jerome Powell is scheduled to begin his post-meeting press conference at 2:30 pm ET.

The material has been provided by InstaForex Company – www.instaforex.com

16,844FansLike
1,692FollowersFollow
13,700SubscribersSubscribe

Recent Posts