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Japan Trade Data On Tap For Wednesday

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Japan will on Wednesday release October figures for imports, exports and trade balance, highlighting a modest day for Asia-Pacific economic activity.

Imports are expected to plummet 15.4 percent on year after dipping 1.5 percent in September. Exports are called lower by an annual 7.5 percent after falling 5.2 percent in the previous month. The trade balance is tipped to show a surplus of 301.0 billion yen following the 123.0 billion yen shortfall a month earlier.

Australia will see October results for skilled vacancies and for the leading economic index from Westpac. In September, vacancies fell 0.7 percent on month and the economic index eased 0.08 percent on month.

China will release prime rate numbers for its one-year and five-year loans. The one-year is called steady at 4.2 percent, while the five-year is expected to rise to 4.9 percent from 4.85 percent previously.

Malaysia will provide October numbers for producer prices; in September, inflation was flat on month and up 1.1 percent on year.

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

Dollar Steady Ahead Of Fed Minutes

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After exhibiting weakness in the previous three sessions, the U.S. dollar held steady on Tuesday, ahead of the release of the minutes of the Federal Reserve’s recent monetary policy meeting.

Slightly waning optimism about a trade deal between the U.S. and China following reports about U.S. President Donald Trump’s reluctance to roll back tariffs on Chinese goods.

The dollar index, which was down at 97.75 in the European session, recovered to 97.89, and despite staying a bit sluggish before noon, edged higher later on and was last seen at 97.85, up 0.06% from previous close.

Against the Euro, the dollar was down at 1.1078, after closing at 1.1071 a unit of Euro in the previous session.

Against Pound Sterling, the dollar was trading at 1.2924, as against Monday’s close of $1.2953.

The Japanese Yen was trading at 108.54 a dollar, recovering from 108.67 a dollar on Monday.

The dollar gained nearly 0.5% against the loonie at 1.3268, and about 0.1% against Swiss franc at 0.9905.

The Aussie, however, was stronger with the pair trading at 0.6826.

The Fed is scheduled to release its monetary policy meeting minutes due tomorrow.

The Fed had reduced its interest rates for the third time at its meeting in late October. tober 29-30.

The minutes could provide clues about the central bank’s likely stance on interest rates in the coming months.

In economic news today, a report from the Commerce Department showed a substantial rebound in new residential construction in the month of October.

The Commerce Department said housing starts surged up by 3.8% to an annual rate of 1.314 million in October after plunging by 7.9% to a revised rate of 1.266 million in September.

Economists had expected housing starts to jump by 5.1% to a rate of 1.320 million from the 1.256 million originally reported for the previous month.

The report also said building permits spiked by 5% to an annual rate of 1.461 million in October after tumbling by 2.4% to a revised rate of 1.391 million in September.

Economists had expected Building permits to edge down by 0.1% to a rate of 1.385 million from the 1.387 million originally reported for the previous month.

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

Oil Futures Settle Sharply Lower Ahead Of Inventory Data

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Crude oil prices plunged sharply on Tuesday amid rising concerns about excess supply in the market and on uncertainty about the U.S. and China signing a trade deal anytime soon.

There were great hopes about a trade deal earlier on Monday after reports said officials from the two countries had discussed core issues in a high-level telephone call, and that the discussions were constructive.

However, later on in the day, a tweet from CNBC’s Beijing Bureau Chief Eunice Yoon suggested Chinese officials have grown pessimistic about the chances for a trade deal due to U.S. President Donald Trump’s reluctance to roll back tariffs.

West Texas Intermediate Crude oil futures for December ended down $1.84, or 3.2%, at $55.21 a barrel.

On Monday, WTI crude oil futures ended down $0.67, or about 1.2%, at $57.05 a barrel.

The Trump administration’s reluctance to roll back tariffs on Chinese goods has raised uncertainty about a trade deal and also raised concerns about energy demand outlook once again.

OPEC members and allies are set to meet in December to discuss extending output cuts beyond March 2020 and also consider deepening the cuts.

Meanwhile, the recent report from Energy Information Administration said U.S. shale output is likely to climb by 49,000 barrels a day in December.

The American Petroleum Institute is scheduled to release its weekly oil report later in the day.

The Energy Information Administration will release the weekly inventory data Wednesday morning.

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

Treasuries Extend Yesterday's Move To The Upside

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After initially showing a lack of direction, treasuries moved higher over the course of the trading session on Tuesday.

Bond prices climbed firmly into positive territory, extending the upward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 1.786 percent.

The continued advance by treasuries came amid some uncertainty about the prospects of the U.S. and China finalizing a phase one trade deal.

Treasuries remained positive in afternoon trading as President Donald Trump threatened higher tariffs on Chinese goods if an agreement is not reached.

“If we don’t make a deal with China, I’ll just raise the tariffs even higher,” Trump said during a cabinet meeting at the White House.

In U.S. economic news, the Commerce Department released a report before the start of trading showing a substantial rebound in new residential construction in the month of October.

The Commerce Department said housing starts surged up by 3.8 percent to an annual rate of 1.314 million in October after plunging by 7.9 percent to a revised rate of 1.266 million in September.

Economists had expected housing starts to jump by 5.1 percent to a rate of 1.320 million from the 1.256 million originally reported for the previous month.

The report also said building permits spiked by 5.0 percent to an annual rate of 1.461 million in October after tumbling by 2.4 percent to a revised rate of 1.391 million in September.

Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.385 million from the 1.387 million originally reported for the previous month.

The minutes of the minutes of the Federal Reserve’s latest monetary policy meeting may attract some attention on Wednesday, although the minutes are likely to reinforce the view that interest rates will be kept on hold for the near future.

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

Gold Futures End Higher For 2nd Straight Day

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Gold prices rebounded from early weakness and settled modestly higher on Tuesday, due largely to a drop in treasury yields.

Amid continued uncertainty about a potential trade deal between the U.S. and China, traders were looking ahead to the minutes of the U.S. Federal Reserve’s latest monetary policy meeting.

Gold futures for December ended up $2.40, or about 0.2%, at $1,474.30 an ounce.

On Monday, gold futures for December ended up $3.40, or about 0.2%, at $1,471.90 an ounce, recovering from a low of $1,456.60.

Silver futures for December ended up $0.118, or 0.7%, at $17.118 an ounce, while Copper futures for December settled at $2.6565 per pound, gaining $0.0365, or 1.4%, for the session.

Investors are looking ahead to the minutes of the Federal Reserve’s October policy meeting for clues about futures interest rate moves by the central bank.

New York Federal Reserve President John Williams said today that the economy is facing several challenges. However, he said the recent rate cuts should help sustain growth.

In U.S. economic release today, a report from the Commerce Department showed a substantial rebound in new residential construction in the month of October.

The Commerce Department said housing starts surged up by 3.8% to an annual rate of 1.314 million in October after plunging by 7.9% to a revised rate of 1.266 million in September.

Economists had expected housing starts to jump by 5.1% to a rate of 1.320 million from the 1.256 million originally reported for the previous month.

The report also said building permits spiked by 5% to an annual rate of 1.461 million in October after tumbling by 2.4% to a revised rate of 1.391 million in September.

Economists had expected Building permits to edge down by 0.1% to a rate of 1.385 million from the 1.387 million originally reported for the previous month.

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

Swiss Market Hits Another New High, Ends Marginally Up

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The Switzerland stock market rallied well after a steady start, posted a new all-time high a little before noon, but retreated and eventually ended the session with just marginal gains.

The benchmark SMI, which climbed to a new peak at 10,428.57, ended the day with a gain of 18.84 points, or 0.18%, at 10,366.02.

On Monday, the index ended with a gain of 37.06 points, or 0.36%, at 10,347.18.

Adecco, Swatch Group, Roche Holding, Alcon, Swiss Life Holding and Credit Suisse gained 0.4 to 1%.

Lonza Group shares declined more than 1%. ABB, UBS Group, Nestle and LafargeHolcim ended modestly lower.

In the midcap section, BB Biotech and Partners Group ended higher by 1.7% and 1.6%, respectively. OC Oerlikon Corp, Swiss Prime Site, Georg Fischer, Dufry and Baloise Holding gained 0.8 to 1%.

Sonova declined more than 8% despite the company posting higher earnings and raising its full-year 2019/2020 sales and profit outlook.

In economic news, Switzerland’s exports declined in October after rising in the previous month and imports fell for the second straight month, data from the Federal Customs Administration showed on Tuesday.

Exports declined by real 1.3% month-on-month in October, after a 2.7% rise in September.

On a monthly basis, imports fell 2.4% in October, following a 1.3% decline in the previous month.

The trade surplus fell to CHF 2.389 billion in October from CHF 3.047 billion in the preceding month.

According to the Federation of the Swiss Watch Industry, watch exports increased by 1.5% year-on-year in October.

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

U.S. Housing Starts Show Substantial Rebound In October

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A report released by the Commerce Department on Tuesday showed a substantial rebound in new residential construction in the month of October.

The Commerce Department said housing starts surged up by 3.8 percent to an annual rate of 1.314 million in October after plunging by 7.9 percent to a revised rate of 1.266 million in September.

Economists had expected housing starts to jump by 5.1 percent to a rate of 1.320 million from the 1.256 million originally reported for the previous month.

Despite the notable rebound, housing starts remain below the more than twelve-year high of 1.375 million set in August.

The report said single-family housing starts climbed by 2.0 percent to a rate of 936,000 in October, while multi-family starts surged up by 8.6 percent to a rate of 378,000.

The Commerce Department also said building permits spiked by 5.0 percent to an annual rate of 1.461 million in October after tumbling by 2.4 percent to a revised rate of 1.391 million in September.

Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.385 million from the 1.387 million originally reported for the previous month.

With the unexpected increase, building permits jumped to their highest rate since reaching 1.493 million in May of 2007.

Single-family permits surged up by 3.2 percent to a rate of 909,000, while multi-family permits soared by 8.2 percent to a rate of 552,000.

A separate report released by the National Association of Home Builders showed homebuilder confidence pulled back slightly in the month of November.

The report said the NAHB/Wells Fargo Housing Market Index slipped to 70 in November after climbing to 71 in October. Economists had expected the index to come in unchanged.

The modest decrease came after the housing market index rose for four straight months to reach its highest level since hitting a matching reading in February of 2018.

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

OECD Growth Slows In Q3

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Stock market chart. Photography of monitor screen.

Economic growth in the OECD that comprises of 36 member countries slowed further in the third quarter.

Gross domestic product in the OECD area grew 0.3 percent from the second quarter, when the economy expanded 0.4 percent, provisional data from the Paris-based Organization for Economic Co-operation and Development showed on Tuesday.

The pace of growth slowed for a second consecutive quarter and was the weakest since the third quarter of last year, when the economy expanded at the same pace.

Among the major seven economies of the OECD, GDP growth slowed sharply in Japan, down to 0.1 percent from 0.4 percent.

The growth rate was stable in the US at 0.5 percent. In France and Italy, the pace of growth was stable for a third and fourth consecutive quarters, respectively, at 0.3 percent and 0.1 percent, respectively.

Growth improved in the UK and Germany to 0.3 percent and 0.1 percent, respectively, after a contraction of 0.2 percent in the previous quarter in both countries.

Eurozone growth was stable at 0.2 percent, while the pace of expansion improved in the EU to 0.3 percent.

On a year-on-year basis, grwoth in the OECD area was stable at 1.6 percent.

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

U.S. Housing Starts Jump 3.8% In October

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A report released by the Commerce Department on Tuesday showed a substantial rebound in new residential construction in the month of October.

The Commerce Department said housing starts surged up by 3.8 percent to an annual rate of 1.314 million in October after plunging by 7.9 percent to a revised rate of 1.266 million in September.

Economists had expected housing starts to jump by 5.1 percent to a rate of 1.320 million from the 1.256 million originally reported for the previous month.

The report also said building permits spiked by 5.0 percent to an annual rate of 1.461 million in October after tumbling by 2.4 percent to a revised rate of 1.391 million in September.

Building permits, an indicator of future housing demand, had been expected to edge down by 0.1 percent to a rate of 1.385 million from the 1.387 million originally reported for the previous month.

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

Dollar Little Changed Following U.S. Housing Starts

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Stock market chart. Photography of monitor screen.

After the release of U.S. housing starts for October at 8:30 am ET Tuesday, the greenback changed little against its major counterparts.

The greenback was trading at 108.70 against the yen, 0.9908 against the franc, 1.1081 against the euro and 1.2946 against the pound around 8:35 am ET.

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

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