Economy to grow significantly above potential in 2018 and 2019

Analysts at Nomura expect the US economy to continue to grow significantly above potential in 2018 and 2019, boosted by tax cuts and a pick-up in government spending. Key Quotes “Job gains remain well above the long-term sustainable pace and will likely continue to push down the unemployment rate to levels not seen since 2001. However, productivity growth remains soft, held down by structural declines in underlying business dynamism (e.g., the rate of new business formation and workers changing jobs).


USD regains poise in Asia, EZ PMIs in focus

The US dollar set off to a positive start to this week, after the bulls regained poise against most of the majors in the Asian session. The renewed broad-based US dollar strength was mainly driven by the ongoing rally in the US Treasury yields, especially the 10-year rates. The Yen emerged the biggest loser versus the greenback while Cable was the strongest, despite mixed performance seen on the Asian equities and subdued oil prices. Both the Antipodeans traded modestly flat


16 Government-Approved Crypto Exchanges Have Formed Self-Regulatory Group in Japan

A new cryptocurrency organization has been registered with the Japanese Financial Services Agency (FSA), consisting of 16 crypto exchanges that have been approved by the agency, according to local media. The Japan Virtual Currency Exchange Association recently held a general meeting, during which a director was chosen, Jiji Press reported. The group plans to “elect Taizen Okuyama, President of Money Partners as Chairman” at the next Board of Directors meeting which will be held on April 23. The association will


China’s exports grown year-on-year in Q1 2018

In all, China’s exports kept its decent growth in the first quarter of this year, in spite of a contraction in March. Exports rose 7.4 percent year-on-year in the first quarter, nearly in line with the rate recorded in the last quarter of 2017, implying a still decent performance, noted ANZ in a research report. High-tech exports were up 20 percent year-on-year, adding 5.7 percentage point to overall export growth. However, exports in March indicated a contraction of 2.7 percent


Canada: Next week data includes CPI and BoC statement

National Bank of Canada’s analysts took a look at next week key events from Canada. Data to be released include inflation while on Wednesday the Bank of Canada will announce its decision on monetary policy. “A lot of attention will be on the release of March’s consumer price index. The headline measure may have increased 0.4% m/m (not seasonally adjusted), buoyed by a 3.9% rise in gasoline prices. This progression, combined with a positive base effect, should push the annual


AUD/USD rejects 0.78 handle ahead of RBA on Tuesday

The AUD/USD is trading at 0.7767 up 0.16% on Friday as the second week of April ends. The Australian dollar gained as much as 150 pips over the last days as earlier in the week Chinese President Xi Jinping said that he intended to open up its economy and push for free trade. Therefore alleviating the China-US trade war tensions. China is the first Australian’s trading partner and therefore the positive trade news also affected the AUD. Additionally, an increase


Wall Street stocks end the week in positive territories

The S&P 500 Index fell by 7.69 points or 0.3% to 2,656.30 and registerd a 2% gain on the week.The Dow Jones Industrial Average dropped 122.91 points or 0.5% to 24,360.14, however, it closed the week 1.8% higher while the Nasdaq lost 33.60 points or 0.5% to 7,106.65 and closed the week with a 2.8% increase. The first quarter earnings season started off with Wells Fargo, Citigroup Inc, JP Morgan and PNC. However, the bank stocks dropped even though the


Dollar Falls as Trade Jitters Return

The dollar fell Friday as renewed trade jitters sent investors into assets perceived as relatively safe stores of value like the Japanese yen. The WSJ Dollar Index, which gauges the U.S. currency against a basket of 16 others, was down 0.2% to 83.99 in late afternoon trading in New York. The dollar was down 0.4% against the Japanese yen to Yen106.92. The U.S. dollar has fallen for five straight quarters and is down 7.6% over the last 12 months, as


Russia tells Britain at U.N.’You’ll be sorry

Russia told Britain at the United Nations Security Council on Thursday that “you’re playing with fire and you’ll be sorry” over its accusations that Moscow was to blame for poisoning a former Russian spy and his daughter. It was the second showdown between Russia and Britain at the world body since the March 4 nerve agent attack on Sergei Skripal and his daughter Yulia in an English town. Russia, which requested Thursday’s council meeting, denies any involvement. The attack has


Gold slips as U.S.-China trade war fears ease

Gold prices fell on Thursday after the United States and China signalled willingness to resolve a trade dispute through negotiations, reducing demand for bullion as a safe place to park assets. Investors moved money back into equities, sending global stock markets higher, while the dollar strengthened, making gold more expensive for users of other currencies. “It’s been a double whammy (for gold),” said Fawad Razaqzada, an analyst at FOREX.com. “Stock markets have stabilised, at least for the time being, and


Kuwait’s investments in US reach $300bln

The American Ambassador to Kuwait Lawrence Silverman reveals that the value of the commercial exchange between Kuwait and the USA exceeds $6 billion, reports Al-Anba daily. In a press release, he said last year witnessed an unprecedented rate of American products being exported to Kuwait, praising the development of commercial relations between the two friendly countries. Ambassador Silverman highlighted some important deals that were signed between Kuwait and the USA last year including the deal for the purchase of ten


Saudi Arabia eyes high-value investments from the U.S.

Saudi Arabian General Investment Authority (SAGIA) has held several meetings with multinational companies in conjunction with the state visit by Crown Prince Mohammed bin Salman to the United States of America. The authority showcased investment opportunities in the kingdom during meetings with aerospace and defence company Textron, additives producer Eastman Chemicals, engineering services firm McDermott and the Business Council for International Understanding (BCIU), according to an emailed statement sent by SAGIA to Zawya. On the sidelines of the meetings, SAGIA


EUR/USD risks losing LT trendline

The EUR/USD fell to long-term ascending trendline (drawn from July low and Dec. 18 low) on Thursday, courtesy of downward revisions of the Eurozone PMIs and weaker-than-expected German factory orders and retail sales print. Also, the sharp pullback in the German 10-year yield in March indicates the markets have scaled back expectations of ECB tightening. Further, Italian political uncertainty could play spoilsport. The Italian-German yield spread will likely widen, pushing the common currency lower if the far-right Lega warms to


Australia’s retail sales beat expectations in February

Australia’s retail sales beat market expectations for the month of February, growing at the strongest pace since July 2017, with gains broadly based across sectors. New South Wales and Victoria again led the growth of these states benefiting from strong employment growth. Retail sales rose 0.6 percent m/m in February, following an upwardly revised 0.2 percent m/m rise the previous month. Encouragingly, retail sales rose by 3 percent y/y in February, up from 2.1 percent y/y the previous month and


Saudi Arabia has announced plans to set up the world’s largest solar power plant

produce 200 gigawatts in Saudi Arabia worth $ 200 billion in cooperation with Softbank. Based on this historic event, Saudi Arabia has opened a new chapter in the history of the energy industry Solar. The Kingdom of Saudi Arabia has set a number of goals and plans to achieve on the ground by 2030, including reaching 9.5 gigawatts of renewable energy by 2023, according to the Saudi solar vision – Softbank will produce about 7.2 GW as a first stage


China vows to retaliate against Trump’s new-imposed tariffs on $50 billion goods

Beijing has promised to respond in kind as the Trump administration announced 25 percent tariff on as many as 1300 Chinese products worth $50 billion. Earlier on Tuesday, the US Trade Representative’s office unveiled a list of products which Washington wants to slap with 25% levies, in order to force Beijing to stop what Trump believes to be unfair trade practices. The list includes some 1,300 products, ranging from chemicals and diodes to motorcycles and dental devices. While the Chinese


JGBs mixed in muted session; long-term 20-year yield drops to 16-month low

The Japanese government bonds traded narrowly mixed Wednesday as investors remained sidelined in a muted session that witnessed data of little economic significance. However, the US-China trade war tensions continued to pamper market participants into safe-haven assets. Further, the 20-year JGB yield hit a 16-month low, amid solid demand received at an auction held yesterday. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.02 percent, the yield on the long-term 30-year note


Australian bonds edge lower following upbeat retail sales data

Australian government bonds slumped on Wednesday following higher-than-expected February retail sales data, pushing the interest rate sensitive 2-year Note yield to its highest since January 31. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 2-1/2 basis point to 2.632 percent, the yield on the long-term 30-year note climbed 3-1/2 basis points to 3.221 percent and the yield on short-term 2-year also jumped 3-1/2 basis points to 2.077 percent by 02:30 GMT. February retail sales


This year, States will flourish economically and others will declare bankruptcy

The International Monetary Fund’s report said that this year will see a boom and economic growth for some countries such as Armenia, Brazil, Peru and Poland, and it will be a bad year for other countries expected to declare bankruptcy due to worsening debt crisis and hyperinflation. The UN report, which monitors the global economic situation, says that Equatorial Guinea is at the head of the countries that are expected to declare bankruptcy this year, along with Zimbabwe and Haiti.


Why a Dollar Rally Hasn’t Yet Happened

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 2, 2018). The dollar can’t seem to catch a break. The U.S. currency posted its fifth straight quarterly loss in the first three months of the year, puzzling investors who bet it would benefit from corporations repatriating cash in the wake of tax cuts signed into law late last year. Many investors


Bitcoin Hits the Skids in Quarter

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 2, 2018). The first quarter was a prime example of why investors shouldn’t get too excited about bitcoin. The digital currency has always been prone to wild price swings, pushed around by news flow and investors’ rapidly changing sentiment. In 2017, those trends pushed the price of bitcoin 1,375% higher. This year,


Oil edges up on reduced U.S. drilling activity, booming job market

Oil markets edged up on Monday on the back of a drop in the number of U.S. rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand. U.S. West Texas Intermediate (WTI) crude futures were at $62.10 a barrel at 0407 GMT, up 6 cents, or 0.1 percent. Brent crude futures were at $65.58 per barrel, up 9 cents, or 0.1 percent, from their previous close. “A falling


Ibovespa Breaks Losing Streak And Rises After U.S. Wage Data

Ibovespa, the benchmark stock market index in Brazil, halted a three-day slump to rise 1.63% to 86,371.41 points Friday, after data on the U.S. labor market showed that wages grew less than expected. “The data on the payroll was the dividing line for today’s trading session. The figures showed strong job creation, but despite that, wages and inflation are not being pushed so hard,” said Hersz Ferman, an economist at Elite Corretora. Mirae brokerage operations director Pablo Spyer said wage


Gold Barely Budges After Mixed Jobs Report

Gold wobbled Friday as traders struggled to make sense of a mixed U.S. jobs report. Gold was up $1.50 at $1323 an ounce, unable to sustain direcetion over the course of the day. Rising stocks limited the precious metal’s safe haven appeal. The U.S. created 313,000 new jobs in February, the biggest gain since mid-2016. However, the 12-month increase in worker pay declined to 2.6% from 2.8%, a sign that wages may not be keeping up with inflation. Economists had


Dollar Little Changed Despite Strong Employment Growth

The dollar is turning in a mixed performance against its major rivals Friday afternoon, but remains little changed overall. Investors were pleased by the stronger than expected increased in February employment, but were concerned over the slowdown in the pace of wage growth. Job growth in the U.S. saw a significant acceleration in the month of February, according to a report released by the Labor Department on Friday, although the report also showed a slowdown in the pace of wage


GBP/USD moves beyond 1.4000, fresh highs

The demand for the Sterling remains well and sound at the beginning of the week and is now lifting GBP/USD further north of the psychological 1.4000 handle. GBP/USD propped up by BoE Cable is extending the up move for the third session in a row on Monday, moving above 1.40 the figure amidst a softer tone around the greenback and positive comments by BoE’s D.Ramsden. In fact, at an interview with the Sunday Times, BoE’s Deputy Governor D.Ramsden said the


EGX gains for 2nd consecutive session amid Arab purchases

The Egyptian Exchange (EGX) ended Sunday in green for the second consecutive session, amid Arab purchases which were supported by the strong performance of the global markets on Friday’s trading. The Dow Jones Industrial Average rose 1.39 percent on Friday while Brent oil climbed on the last two days of the week, closing at $67.31 a barrel. The benchmark EGX30 increased 0.97 percent, or 148.85 points, to end at 15,467.77 points. The small and mid-cap index EGX70 rose to 859.53


U.S. Dollar Drops Against Most Majors

The U.S. dollar fell against its most major opponents in late Asian deals on Monday. The greenback dropped to 1.2332 against the euro and 0.9330 against the franc, from its early session’s highs of 1.2280 and 0.9374, respectively. The greenback hit a weekly low of 1.4027 against the pound and a 5-day low of 0.7881 against the aussie, off its early highs of 1.3962 and 0.7829, respectively. The greenback weakened to 1.2615 against the loonie and 0.7338 against the kiwi,


UK Services Sector Logs Strong Growth

UK services sector registered strong growth in business volumes in three months to February, the latest Services Sector survey from the Confederation of British Industry showed Monday. Both business and professional services and consumer services logged a rise in profits for the first time since November 2015. Business and professional services said their business volumes grew at the fastest pace since August 2015, and growth is set to accelerate further in the three months to May. In the consumer services


Saudi Arabia sets on the throne of the largest investors in the Middle East

Saudi Arabia has emerged as one of the largest and most important investors in the Middle East, following its downfall to the State of Qatar, which has witnessed a significant decline in recent years as a result of boycotting some countries in the region, Bloomberg reported. The US economic news agency has described Saudi Arabia as the largest manufacturing industry in the Middle East, thanks to government efforts to establish the Saudi Investment Fund, which the kingdom is looking to


Egypt’s trade deficit drops 15.7% in 1H of 2017/18

Egypt’s Trade Deficit declined 15.7 percent year-on-year in the first half of fiscal year 2017/18, dropping from $21.7 billion to $18.3 billion, Planning Minister Hala al-Saeed said Saturday. The minister said, during a press conference, that imports in that period fell 7.3 percent, standing at $29.4 billion, while exports increased by 11 percent to reach $11.2 billion. Saeed added that non-petroleum exports grew by 11 percent in the first half of 2018/17. The most prominent sectors that saw an increase


Oil climbs with support from Libyan outage, Saudi comments

Oil prices rose on Friday to their highest in more than two weeks, supported by the shutdown of the El Feel oilfield in Libya and upbeat comments from Saudi Arabia that an OPEC-led effort to cut stockpiles is working. El Feel produces 70,000 barrels per day of crude. Production in OPEC member Libya has been running at about 1 million bpd, although it remains volatile due to unrest. “Libya is another outage,” said John Kilduff, partner at investment manager Again


Gold heads for biggest weekly loss this year as dollar bounces

Gold eased on Friday, heading towards its biggest weekly decline in 2-1/2 months, as the U.S. dollar climbed from last week’s three-year low on the back of higher U.S. Treasury yields. Bullion has come under heavy pressure this week from a recovery in the greenback and expectations that the U.S. Federal Reserve will press ahead with interest rate increases this year, which tend to weigh on non-yielding gold. Rising U.S. yields have put the dollar on track for its second


Oil jumps on surprise US crude drawdown report and OPEC jawboning

US crude oil (WTI) is now trading around 59.50, in the New York session, jumping by almost 0.50% after the US inventory report. So far it made a session high of 59.81 on a surprise crude drawdown figure from the EIA report. According to the EIA, crude oil inventories came at 1.841M against estimates of 2.825M (prior: 1.895M), which is also in sharp contrast from earlier API data of 3.947M. US crude production came at 10271 mbpd against prior 10251


EUR/USD extends gains to the 1.2440

Dollar’s sell-off decelerate but persists, with European currencies reaching fresh weekly highs and the EUR/USD pair nearing 1.2440 at the time of writing, its highest since February 6th. US inflation unexpectedly surged in January, bringing back fears triggered by the US Nonfarm Payroll report of a possible upcoming faster pace of rate hikes in the world’s largest economy. The greenback soared, and stocks plummeted as an immediate reaction, as inflation rose 2.1% yearly basis, surpassing expectations of 1.9% and above


Japanese stocks fall to a 4-month low

Japanese stocks fall to a 4-month low as longer-term concerns over rising Treasury yields and possible tighter Bank of Japan policy dispel the morning’s optimism. Overnight gains in global stocks and news of the looming reappointment of Gov. Kuroda buoyed the morning session, but ultimately failed to generate enough traction to overcome ongoing uncertainty over future BOJ policy and Kuroda’s likely deputies. Takashi Hiratsuka, trading group leader at Resona Bank’s asset management division, says the appointment of a reflationist like


Kuroda Chatter May be Boosting the Yen

The yen’s afternoon rally has been on what some market participants say are doubts that Kuroda will actually get reappointed, says NAB’s Rodrigo Catril. But he discounts that sentiment, contending that Abe’s statement that the BoJ chief getting another term isn’t a given needs to be seen in the context of his parliament speech expected to be noncommittal before an official appointment. Meanwhile, Catril says it’s difficult to say whether the yen sent the Nikkei lower in afternoon trading or


Chinese yuan’s surged to two-year high on a trade-weighted basis

The yuan is at its highest since June 2016, having strengthened 2.3% against a basket of its trading partners’ currencies since Jan. 12 — which marked its lowest point this year. The gauge, the CFETS RMB Index, is published each Friday by the China Foreign Exchange Trade System and measures the yuan against 24 currencies including the dollar, euro, Japanese yen and Korean won. The index stayed within a range in the fourth quarter of 2017. It ultimately ended the


JPMorgan Analysts See Cryptocurrencies Lasting

Jamie Dimon once called bitcoin a fraud. Now, his bank has a new report saying cryptocurrencies could help investors diversify equity and bond portfolios. In a 71-page research note, JPMorgan says cryptocurrencies “are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity even as the latter is under threat.” The word “fraud” is mentioned 7 times in the report, but none are in the same context


Oil prices rise 1% as stock markets stabilize

Oil prices rose 1 percent on Monday, offsetting some of the big losses of last week as Asian stock markets stabilized after days of turbulence. But oil markets are looming as US output, which undermines the efforts of the Organization of the Petroleum Exporting Countries (OPEC) and Russia, tightens the gap between supply and demand and raising prices. Brent crude futures were $ 63.54 a barrel by 0728 GMT, up 75 cents, or 1.2 percent, from the previous close. West


Will Egypt achieve self-sufficiency in natural gas?

The government says it hopes to stop importing natural gas next year, according to Oil Minister Tariq al-Mulla. However, analysts say that Egypt may not be able to achieve self-sufficiency, and that even if it stops importing gas, it will continue to import other petroleum materials needed to generate electricity such as diesel and diesel, contrary to what happened years ago when natural gas production was sufficient for all needs, Electricity. Natural gas production last year reached 53 billion cubic


USD/JPY drops to lowest in 5-months near 108.00 before rebounding

•USD/JPY hits fresh monthly lows and rebounds. •Wall Street on a volatile day: test weekly intraday lows and recovers. The yen rose across the board during the last session of the week supported by risk aversion. The Dow Jones was in negative territory on a volatile day, creating concerns among investors that increased the demand for safe haven currencies, among them, the yen outperform. Also, US bonds rose favoring further the Japanese currency. USD/JPY dropped to 108.02, reaching the lowest


US and Canada: What to watch next week

Analysts at National Bank of Canada presented next week Canadian and US key reports with a preview. “In the U.S., the consumer price index could have increased 0.4% m/m in January as gasoline prices rose sharply. Nevertheless, we expect the year-on-year rate to drop two ticks to 1.9%. The core CPI, for its part, could have increased 0.2% m/m. That would translate into a one tick decline of the 12-month rate at 1.7%.” “Retail sales may have stalled in January,


US 10-year yield ends week little changed, capped by risk aversion

A volatile week, ends with sharp losses in Wall Street. Fear among investors increased appetite for US bonds. Markets on a new short-term normal. The 2-year yield finished the week lower, moving further away from 9-year high. Risk aversion increased the demand for short-term bonds. The 10-year bottomed on Tuesday at 2.65% and ended the week hovering around 2.83% still below where it was a week ago. On Thursday it approached multi-year highs at 2.88% and pulled back. Equity prices


Canada: Slump in employment but details not overly worrisome

According to National Bank of Canada’s analyst, Matthieu Arseneau, the labour market remains very tight in Canada despite the slump reported in January. “Canadian employment slumped 88K in January according to the Labour Force Survey. This decline was accounted by a 137K plunge in part-time jobs as full-time employment was actually up 49K on the month. The drop in headcounts led to a one-tick increase in the unemployment rate to 5.9%, an increase that was partially offset by a three


US indexes trim early losses, close with solid gains

US indexes plunged right after the opening but managed to close the day with solid gains, down anyway for the week. The Dow Jones Industrial Average gained 326 points, and settled at 24,186.59, down for the week over 5%. This Friday, the Nasdaq Composite added 97 points to close at 6,874.49, while the S&P added 38 points, to 2,619.55, both also sharply lower weekly basis. This weekly close clearly suggests that the long due correction has already begun, and this


Treasuries Move Lower For Third Consecutive Session

After moving lower over the two previous sessions, treasuries saw some further downside during trading on Friday. Bond prices came under pressure early in the trading day and remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.6 basis points to 2.637 percent. With the continued increase on the day, the ten-year yield once again climbed to its highest closing level in well over three years. Treasuries


The Saudi Stock Exchange (Tadawul) up 3% in a week

The Saudi Stock Exchange (Tadawul) made gains for the fifth consecutive week. The Tadawul All Shares Index (TASI) rose by 2.7%, or 200 points, as it ended the week at the level of 7,539.02 points. Market cap rose by SAR 56.1 billion to a total of SAR 1.767 trillion. As for the market sectors’ performance, 18 indexes went up this week, led by media and publishing, which rose by 8.6%, followed by food with 4.1%. Meanwhile, banks, materials, and telecom


EGX hits new record for 2nd week in row

The Egyptian Exchange (EGX) achieved new gains during the third week of 2018, which ended Thursday 18 January. EGX30, the market’s benchmark index, gained 1.11% or 168.52 points, as it ended the week at its all-time record high of 15,411 points. Traded volumes amounted to 1.2 billion shares, with the total turnover reaching its highest level since last November at EGP 4.2 billion. The market capital increased by EGP 14.7 billion, closing at EGP 861.8 billion, compared to EGP 847.1


The ECB, whose Governing Council meets on Thursday, last expressed concern over the single currency in September

After hitting a three-year high against the dollar, the strong euro is likely to preoccupy global markets and European Central Bank policymakers in particular in the coming week. The ECB, whose Governing Council meets on Thursday, last expressed concern over the single currency in September, when it said exchange rate volatility was an uncertainty that required “monitoring”. Then the euro had only briefly nudged beyond $1.20. In the last week it has surpassed $1.23, and is now some 4 percent


The governments around the world are increasingly moving towards regulating the initial coin offerings

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MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4% to a record top.

Asia stocks shook off losses on Wall Street and edged up to record highs on Friday following China’s announcement of faster-than-expected fourth quarter growth, while worries over a possible U.S. government shutdown weighed on the dollar. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent to a record top. The index had climbed 1.3 percent on the week, during which it rode a surge in global equities. Optimism over the global economic growth outlook and improved corporate earnings


The rapid growth of US shale producers will shortly knock Saudi Arabia from second to third place

The rapid growth of US shale producers will shortly knock Saudi Arabia from second to third place among the world’s oil-producing titans, with only Russia ahead, the International Energy Agency said on Friday. With Venezuelan output plummeting amid political and economic turmoil, the IEA indicated the Kingdom could lose its number two position in 2018. “Very soon US crude production may overtake that of Saudi Arabia and also rival Russia’s,” it said. The backdrop is a tightening market amid a


The dollar held steady above a three-year low versus a basket of currencies on Friday

The dollar held steady above a three-year low versus a basket of currencies on Friday, marking a fifth week of falls and its longest losing streak since May 2015 as worries over a possible U.S. government shutdown weighed. On Thursday, the U.S. House of Representatives passed a bill to fund government operations through to Feb. 16 and avoid agency shutdowns from Saturday when existing allocations expire. The bill has yet to be approved by the Senate, where it faces an


Dollar Hits Lowest Level Since 2015

The U.S. dollar fell Thursday as Congress appeared no closer to resolving a budget impasse that could lead to a government shutdown after Friday. The Wall Street Journal Dollar Index, which tracks the currency against a basket of 16 others, declined 0.3% to 84.42, the lowest closing level since May 2015. The dollar fell broadly, with declines of 0.4% against the euro, 0.5% against the British pound and 0.2% against the yen. The government’s current funding expires at 12:01 a.m.


U.S. Dollar Under Pressure on the Risk of U.S. Government Shutdown

On Thursday, the three major U.S. stock indexes dived one day after racing to all-time highs, dragged by weakness in real estate and energy sectors. The Dow Jones Industrial Average slipped 98 points (-0.4%) to 26018. The S&P 500 lost 5 points (-0.2%) to 2798 and the Nasdaq Composite was down 2 points (-0.03%) to 7296. The market worried about the potential for a government shutdown this weekend. In addition, the quarterly results were disappointing. European stocks closed mixed, with


CFTC Alleges Fraud in Three Virtual-Currency Cases

The top U.S. derivatives regulator brought charges in three cases involving virtual currencies on Thursday, alleging that defendants fraudulently solicited customers and violated other commodity laws and regulations. The Commodity Futures Trading Commission cases fit the template of the agency’s usual enforcement cases, evidence it plans to continue treating virtual currencies as commodities. The cases are the first to be brought since the commission allowed the launch of bitcoin futures contracts last month, a move that coincided with a run-up


U.S. Stocks Rise as Bank Results Roll In

U.S. stocks rose Wednesday following a spate of bank earnings and corporate updates. The Dow Jones Industrial Average climbed 149 points, or 0.6%, to 25942. The S&P 500 advanced 0.5% and the tech-heavy Nasdaq Composite rose 0.5%. The S&P 500 and Dow industrials pulled back Tuesday, but still notched their best first 10 trading days of the year since 2003, helped by signs of an accelerating global economy. Some investors have said they expect a favorable economic and earnings backdrop


Stronger Yuan Fix Reflects Reduced Domestic Influence

The yuan’s strong fix against the dollar reflects the latest weakness in the US currency, especially after a recent move by Beijing to limit the influence of a counter-cyclical measure it used to stabilize the pair. “Markets seem to realize that spot market for the USD/CNY will follow the dollar index in intra-day moves than domestic factors,” says ING’s Iris Pang. Earlier Monday, China guided the yuan to its strongest fixing level against the dollar since May 2016, helping the


Cairo’s main index increased in value by 21.66% during 2017.

Egypt’s equities market performed better than peers in neighbouring Gulf Cooperation Council (GCC) countries in 2017. Cairo’s main index increased in value by 21.66 percent during 2017, as a continuous drop in inflation, positive comments from the Central Bank and an ongoing program of economic reforms boosted investor sentiment, especially in the second half of the year. Samar Soliman of Egypt-based Okaz Stockbrokers and Investments Consultants, said: “The Egyptian Exchange’s performance in 2017 is a clear reflection of the conducted


Dollar under pressure, euro bolstered by hawkish ECB minutes

The dollar slumped against rivals on Friday on the back of weak factory inflation data, while the euro enjoyed solid support after the European Central Bank hinted that it could be gearing up to trim its massive monetary stimulus. The dollar index, which tracks the greenback against a basket of six major rival currencies, edged down slightly to 91.814. A move below the Jan. 2 low of 91.751 would put it at its weakest since Sept. 20. The index was


Saudi Aramco will be included in the MSCI Saudi Arabia Index at the time of the IPO

International equity index compiler MSCI said it expected to include Saudi Aramco in its Saudi Arabia Index from the time of the oil giant’s IPO, potentially triggering a big flow of funds into the shares as soon as they list in Riyadh. “Saudi Aramco will be included in the MSCI Saudi Arabia Index at the time of the IPO as long as it fulfills all eligibility criteria, including the listing of the company’s shares on an eligible stock exchange and


Oil adds to rally, heads for fourth week of gains

Oil prices rose for a sixth day on Friday after Russia’s oil minister said that global crude supplies were “not balanced yet,” alleviating market concerns about a wind-down of the OPEC-led deal to reduce production. Russian Energy Minister Alexander Novak said ministers from leading OPEC and non-OPEC producers will discuss the possibility of exiting the deal at a coming committee meeting, but said that “we see that the market surplus is decreasing, but the market is not completely balanced yet.”


Bitcoin and Regulators: An Awkward Dance

Bitcoin is stuck in the mud. The price of the cryptocurrency took a dive last week, levelled off, and ended at $13,800. In the past month, prices have declined by about 30% through Friday, according to Coinbase. Tightening regulation is, in part, responsible. Leaked documents showed that China’s top internet-finance regulator asked local governments to encourage bitcoin mining operations — those using computers to verify and add to a public ledger for cryptocoin rewards — to make an “orderly exit.”


U.S. Consumer Prices Rose 0.1% in December

U.S. consumer prices rose in December, bolstering expectations that long-weak inflation is set to gain strength in the new year. The consumer-price index, which measures changes in the prices Americans pay for everything from breakfast sausage to doctor visits, increased a seasonally adjusted 0.1% in December from the prior month, the Labor Department said Friday. That small gain matched economists’ expectations. But prices rose 0.3% in December when excluding the often-volatile categories of food and energy, the largest increase for


Dollar Drops to Lowest Level Since September

The dollar sank to its lowest level in nearly four months Friday, driven by expectations of monetary policy tightening outside the U.S. The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.4% at 85.10, its lowest level since mid-September. A December rise in U.S. consumer prices, reported Friday, did little to stem the currency’s decline as investors focused on the possibility of quickening economic growth outside the U.S. Expectations


U.S. Stocks on Track to Set New Closing Records

Shares of banks climbed following a flurry of earnings reports and retailers continued to rally, hurtling major U.S. indexes toward a trifecta of records. Stocks continued their meteoric rise, a sign for many investors that the long-running rally that powered the Dow Jones Industrial Average and the S&P 500 to double-digit gains last year isn’t finished yet. The Dow and the S&P 500 have gained more than 4% each through the first two weeks of the year. Some investors say


Canadian Dollar and Mexican Peso Fall on Nervousness Over Nafta

The currencies of Canada and Mexico tumbled against the dollar Wednesday, on concerns that the U.S. will soon pull out of the North American Free Trade Agreement. The U.S. dollar was up 0.9% against the Canadian dollar to 1.2593, on track for its biggest daily gain since October. The dollar was 0.6% higher against the Mexican peso to 19.35. Canada is increasingly convinced that U.S. President Donald Trump will soon announce that the U.S. intends to pull out of the


US: Key economic events ahead

“US Dec CPI: In November, headline inflation accelerated as gasoline prices jumped. Headline consumer prices gained 0.4% in the month and 2.2% over the year, up from 2.0%yr in October. Core inflation however surprised to the downside, rising by just 0.1% as health care and clothing costs weighed. Annual core CPI inflation is currently at 1.7%yr, a level that has been maintained for the past six months. Come December, a 0.2% rise in headline and core inflation is expected as


BRAZIL: Ethanol Demand Expected To Increase 60% In 2018

The RenovaBio program – which aims at increasing biofuels consumption – and rising gasoline prices in Brazil should lead to a 60% growth in local ethanol demand, said Henrique Falqueiro, director of NexSteppe, which operates in the sector. “Therefore, the year 2018 should be used so that sugarcane plantations prepare for a reality of increasing competitiveness of ethanol in the pumps of the gas stations,” he said. The production mix is expected to increase in favor of ethanol production, since,


After two days declining, the Ibovespa jumped 1.49% Thursday.

After two days declining, the Ibovespa jumped 1.49% Thursday, closing at 79,365.44 points, supported by shares of steelmakers, banks and Petrobras amid a more favorable external scenario. Gerdau shares (+8.16%) posted the highest increase amid the Ibovespa’s constituents, followed by other steelmakers such as CSN (+5.85%) and Usiminas (+5.36%). The news that CSN raised steel prices to distributors by about 12%, after increasing prices for automakers, boosted share prices. Also, BTG Pactual has raised recommendations for the shares of CSN


Ibovespa Falls For Second Straight Day As Risk Appetite Fades

Ibovespa, the benchmark stock market index in Brazil, ended down for the second consecutive day on Wednesday, dropping 0.84% to 78,200.57 points. Investors are still taking profits after the recent 11-day streak of gains in the local market. Negative performance in stock market indexes abroad and data showing that the December inflation in Brazil was stronger than expected also weighed on the Ibovespa. “I believe this is profit-taking due to the strong start of the year we had. The inflation


JGBs gain as BoJ revives bond buying

Japanese government bonds gained on Thursday as the Bank of Japan maintained the amount of its bond buying in its open market operation. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell over 1 basis point to 0.073 percent, the yield on the long-term 30-year note dipped 1/2 basis point to 0.847 percent and the yield on short-term 2-year also slid 1/2 basis point to -0.128 percent by 04:20 GMT. The BoJ bought JPY250


Australia 10-year bond yield hits highest on upbeat November retail sales data

Australian government bonds plunged on Thursday following higher-than-expected retail sales data for November. Also, weakness in the U.S. Treasuries pushed the bond yields higher. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1-1/2 basis points to 2.717 percent, the yield on the long-term 30-year note jumped 2-1/2 basis points to 3.429 percent and the yield on short-term 2-year climbed 2-1/2 basis points to 2.062 percent by 03:30 GMT. Australian retail sales jumped past


Dollar Drops Against Yen On U.S. Bond Concerns

The dollar is turning in a mixed performance against its major rivals Wednesday afternoon. The buck is little changed against its major European rivals, but is down significantly against the Japanese Yen. The safe haven status of the Yen is driving it higher against the dollar after reports that China is considering slowing or halting new Treasury purchases for foreign reserves. Bloomberg reported that Chinese officials are reviewing their stand on investment in U.S. government debt, given trade tensions between


U.S. oil hits highest since 2014

U.S. oil prices hit their highest since 2014 on Wednesday as OPEC-led production cuts and healthy demand helped to balance the market, but analysts warned of possible overheating. A broad, global market rally, including stocks, has also been fuelling investment into crude oil futures. U.S. West Texas Intermediate (WTI) crude futures were at $63.42 a barrel, up 46 cents, at 1024 GMT. Earlier prices rose to $63.57, the highest since Dec. 9, 2014. Brent crude futures were at $69.10 a


Australian bonds slump following weakness in U.S. Treasuries

Australian government bonds slumped on Wednesday following board weakness in the U.S. Treasuries. Yields on the benchmark 10-year US Treasury hit a nine-month high overnight, climbing to 2.5 percent after the Bank of Japan’s trimmed its purchases of super-long debt. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 6 basis points to 2.703 percent, the yield on the long-term 30-year note jumped 5-1/2 basis points to 3.404 percent and the yield on short-term


Yield on 10-year JGBs hits highest since October 23, up nearly 2bps

Japanese government bonds slumped on Wednesday following board weakness in the U.S. Treasuries. Yields on the benchmark 10-year US Treasury hit a nine-month high overnight, climbing to 2.5 percent after the Bank of Japan’s trimmed its purchases of super-long debt. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 2 basis points to 0.08 percent, the yield on the long-term 30-year note surged nearly 1-1/2 basis points to 0.84 percent and the yield


Leaked tape suggests Egypt on board with Trump’s Jerusalem decision

According to local media reports, a leaked intelligence tape has revealed that Egypt is on board with the U.S. President Donald Trump’s decision to recognize Jerusalem as Israel’s capital and move the U.S. embassy in Israel from Tel Aviv to Jerusalem. The tape suggests that Egypt’s intelligence officials have instructed several Egyptian talk show hosts to downplay Donald Trump’s Jerusalem decision. In leaked phone calls, Captain Ashfar El Kholi can be heard urging three media professionals to persuade their viewers


The UAE economy is expected to accelerate by 3.9% in 2018

The United Arab Emirates (UAE) ‘s GDP growth is expected to accelerate to 3.9 percent in 2018, a senior UAE economy ministry official said, quoting estimates by the central bank. Abdullah Al Saleh, Undersecretary for Foreign Trade Affairs, was speaking at an economic conference. Last month, the UAE central bank estimated GDP growth in 2017 at no more than 1.6 percent, partly because of oil production cuts under a global producer agreement. Oil production is not expected to fall further


Bitcoin trades influenced by negative talk, and relative calm in trading

BitCoin news is still absent from the markets, and it is clear that the psychologists are beginning to respond to the negative news of the Betcoin more than the current correction process. The most important negative news that came from Bitcoin during the current period The first news came from Egypt, where the Mufti of the Egyptian Diwan (Dr. Shawky Allam) said that the circulation of the Betkin is forbidden according to sharee’ah because of its lack of clarity and


Oil is stabilizing near a 3-year high supported by lower US dredgers

Oil prices stabilized on Monday and settled at a slightly lower level than last week’s three-year high, supported by a slight decline in the number of US drilling platforms. West Texas Intermediate crude futures contract was $ 61.50 a barrel by 0800 GMT, up six cents from the previous settlement price. Crude hit $ 62.21 a barrel last week, its highest since May 2015. Brent crude was $ 67.66 a barrel, up 4 cents from the closing price. Brent hit


Russia warns negative impact on relations over Tokyo’s Aegis deployment

Russia protested Japan’s decision to acquire and deploy U.S.-made Aegis Ashore missile defense installations on its territory after the decision was made in late December by Tokyo to defend against North Korean missile threats. Maria Zakharova, spokesperson for the Russian Ministry of Foreign Affairs, the deployment would lead to a deterioration in bilateral ties between Moscow and Tokyo. She said, “Actions like these are in direct contradiction to the priority of building military and political trust between Russia and Japan,


US consumer price inflation likely to hit 2 pct through this year

The United States’ consumer price-led inflation index is expected to hit 2 percent through this year, according to a recent poll by FxWirePro. With the pace of rising inflation, the Federal Reserve is expected to raise policy rates gradually to 2 percent by end-2018. Inflation overshoots the target during the projections, though the monetary tightening, fading of the fiscal impulse and anchored expectations will return it towards the target in the medium term. The gradual rise in interest rates will


Fed Hike probabilities over next 12 months

•The probability for rate hikes has tightened further for both near months and longer months, however, the market is still not pricing the third hike for December. Next hike is priced in March with 64.9 percent probability, instead of 57.1 percent a week ago. •The market is pricing the second hike for 2018 in September with 69.8 percent probability compared to 64.5 percent probability, a week ago. •The market is pricing the third hike in December with only 44 percent


Ibovespa Surpasses 79,000 Points, Pulled By Global Risk Appetite

The Ibovespa reversed an initial decline to end up 0.54% Friday at 79,071.46 points – a new record closing level. The index had a weekly gain of 3.5%, amid rising global risk appetite after disappointing employment data in the U.S. increased bets that interest rates in the country would grow more slowly. According to H. Commcor’s chief operating officer, Ari Santos, the fact that the United States created 148,000 jobs in December, compared with the 185,000 forecast, fueled expectations that


ARGENTINA: Merval Breaks 32,000 Points Barrier For The First Time In History

Merval, the main index of the Buenos Aires Stock Exchange, rose 0.79% to 32,505.59 points Friday, a new settlement record that marked the 13th consecutive session of gains to the Argentinean stock market. Merval had a weekly gain of 7.11%. Friday’s rise occurred in spite a temporary profit-taking again during the midday, as it did during the last few sessions to then recover and close in positive territory. Analyst Daniel Mackintosh, from R. Mackintosh brokerage, noted that the trading volume


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