Economic and company news by ForexMart

[AppleFX]

Hi all.

Me and my team will be posting daily analysis on this thread. You may leave comments.

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[AppleFX]

October 27, 2016

China Reassures Investors to Impede a Six-year Low

Chinese Yuan is depreciating nearing a record low in six years. The government is finding ways to hinder the process and recover from this impending threat. However, the deputy Governor of People’s Bank of China (PBOC) said that there is no grounds for a relentless decline and they stopped it from happening.

China is giving off signs that the currency is being carefully monitored and investors should be careful in their trading positions against the currency. Despite this information, this would have much of an impact considering past connotations to the problem since the driving force is the appreciation of dollar.

The PBOC is saying if volatility arises, investors should not be agitated as they would definitely do something to stabilize the situation. China has already eased the local bonds and abandoned the necessity for inbound investment program quotas.

[AppleFX]

October 28, 2016
Apple Releases New Macbooks in an Attempt to Recover Market Losses
Apple Inc. has recently unveiled its new range of Macbooks as part of the tech firm’s attempt to revive a product which was predicted by Steve Jobs would be rendered obsolete soon by the iPad. Analysts are expecting that this newly-released product line would enable the firm to significantly update its long-term growth. The shares of the said firm has recently dropped by up to 1% and has traded at $114.48 towards the end of the New York trading session. Meanwhile, Apple stocks surged by up to 20% as a result of expected positive sales for the iPhone 7. However, the firm’s shares immediately gave up a portion of its value after the company released a rather careful sales forecast.

[AppleFX]

October 28, 2016

UK economy made a 0.5% growth after the Brexit authorization

Three months after the Brexit happened, UK economy manifested a fast recovery with the help of the country's service sector.

As it was indicated by the Office for National Statistics, there is a 0.5% increase in the economic health during the third quarter of the year. The result is lower compared to the previous quarter with a 0.7% rate, however, the latest increase is much stronger against the analyst's assessment.

Due to the better-than-expected outcome, the preconception regarding BoE's interest cut rate for the following week had subsided. However, the supporters of the referendum believes that these figures are an indication that the entire negative speculations about the EU exit are merely about fear-mongering.

[AppleFX]

October 28, 2016
Demand for Manufactured Capital Goods Weakened
The manufactured capital goods from America fell by 1.2% in September despite three consecutive months of gains. The demand for computers and other electronic products slowed down which is expected to affect business spending in the last quarter of the year.
Demand for new heavy machineries has been reduced because of the predominance of used construction equipments while the demand for transportation equipments declined by 0.8% that impelled durable goods lower by 0.1%. On the other hand, orders for electrical equipments and machineries including appliances has risen last month. However, this may shift course to a better predicament since the dollar appreciated as well as the oil and gas drilling activity has improved in the past months.

[AppleFX]

November 3, 2016

A 15-month Hike of Petrol and Diesel prices

Petrol and diesel prices soar sternly reaching the highest level since July 2015 due to the rising crude oil prices and the depreciation of pound since Brexit. The standard diesel is now priced at 118.7p per liter while the standard petrol is priced 116.7p per liter rising by 5.2p and 4.4p respectively. This has been the highest monthly increase in the span of three and half years.

The weak pound also has an effect to the wholesale market that has relatively put pressure to the wholesale prices. The RAC has forecasted that this will stabilise in the next months while OPEC agreed to reduce production. The next OPEC meeting will determined if the prices will steady before the end of the year.

[AppleFX]

November 3, 2016
Positive economic news leaves a better impact on Asian markets
The positive news yesterday regarding the Australian and Chinese economy boosts Asian markets. Despite of the skepticism about the expected result for the presidential election did not hinder traders to edged up in Asia. In addition to the favorable release on Thursday, a private gauge were used to assess the activities of China's service sector. According to results, the month of October is considered to be the fastest time period of expansion which indicate the strengthening of the China economy.
The purchasing managers index of Caixin China grew up to 52.4 in October, compared to 52.0 in September. While South Korea’s Kospi SEU gained 0.2% versus -0.17%, Hong Kong’s Hang Seng HSI were able to recover from -0.10% to 0.2% and S&P ASX 200 XJO of Australia made a 0.1% increase against the previous -0.08% .

[AppleFX]

November 4, 2016

Estate Agency Groups expects for a sharp increase on house rents

The possibility of the increase of rents over the next five years were confirmed property agents of Savills. According to forecasts, it is feasible that the rate for rental amount will have an additional 19% upon this year until 2021 compared with the House Price Index which will surge for only 13%.

The escalation of prices will be much felt in London which will have an accrual of 24.5% while 10.9% only for house prices.

The reason behind this increment was the "post-referendum economic uncertainty" along with a low consumer sentiment. Even before Savills stated that there will be no proliferation within house values. However, the demand for real estate properties are also expected to have higher rates by which first time home buyers will have affordability issues.

[AppleFX]

November 7, 2016 - UK Manufacturers Suspend Investment Plans in the Next Two Years

Political uncertainty causes the British manufacturers to be discouraged from spending. They are agitated that the economy will slow down next year that pushes back the investment plans of the companies. The survey of 600 companies showed an increase in polls from 54% in 2015 climbed to 60% this year while they intend to spend less or the same in the next two years.


Exports also boosted with the depreciation of pound as it become more contending in the market. Data has improved from March to August with high demand in Europe and United States however, the domestic outlook is not performing well. Experts see this as just the beginning and there will be more serious problems after Brexit negotiations have been settled.

[AppleFX]

November 7, 2016
Japanese Yen Drops, Asian Stocks and Mexican Peso Surge Following FBI Statement on Clinton E-mails


The Mexican peso (MXN) garnered substantial gains, as well as US stock index futures and Asian equities after the FBI released a statement regarding Clinton’s e-mails, stating that there were no incriminating information present in Hillary’s e-mails. On the other hand, the Japanese yen and Swiss franc slightly decreased along with gold stocks. The Mexican peso, which has been recently touted as a barometer for the Trump campaign, reached its highest levels in four weeks while the MSCI Asia Pacific Index reverted significantly merely a few hours away from the US presidential election on Tuesday.

[AppleFX]

November 8, 2016 - U.K. Public Expenditures are Expected to Slump £25bn on 2020
The weak economic growth would result to lower tax returns with increase in debts by £25bn predicted on 2019 to 2020 despite the cut rate has been successfully executed. The Chancellor of the Exchequer, Philip Hammond, said that he will focus to expend on new houses and mass transportation instead of concentrating on balancing the books by 2020.
The Institute for Fiscal Studies have two resolutions: to reduce taxes by increase spending to boost the economy and to set new fiscal targets. Various companies has lowered their growth forecast and increased their inflation targets since Brexit. There are still risks on hand with the uncertainty of the reaction in the economy and the direction of policies as described by the Organisation for Economic Co-operation and Development.

[AppleFX]

November 8, 2016

Germany Factory Orders plummeted in the month of September

According to the Federal Statistical Office of Germany, there is a sudden downturn in the manufacturing orders in Germany subsequent on its two successive months of gains. The decline is the result of the loss of demand that comes from the countries within the eurozone. The estimated cutback is 0.6% mom during September, though expectations amounted to 0.3% while in August there is 0.9% of increase.

Orders from Germany had 1.1% drop and other Eurozone countries experienced 4.5% decrease. Meanwhile, third countries or states outside the euro area accomplished 2.5% increase.

The German industry expects that it would be much difficult for the commerce to recover considering the fact that average monthly increase of factory orders is 0.1% only.

[AppleFX]

November 8, 2016
Oil Prices Surge after a Week-Long Slump as FBI Statement Increases Chances of Clinton Victory


Oil prices was able to experience a boost after seven days’ worth of falling oil prices due to widening market rally after the FBI statement on Clinton’s e-mails, cementing a large percentage of a Clinton victory in the upcoming US elections. Futures also bounced back after a week of disappointing prices, while global equity prices also increased and the USD regained its strength and is now ahead of other major currencies. The OPEC has also stated that it is currently in talks with Russia with regards to limiting the production of crude oil as a means to help the market regain its balance.

[AppleFX]

November 9, 2016

Financial Markets Gunning for Biggest Moves Post-Brexit

The international financial market has been experiencing its biggest and most volatile movements ever since the Brexit referendum was released on June 2016 due to an unprecedented Trump victory in the US elections. Gold stocks have increased significantly and has now posted its biggest movement since Brexit, while 10-year US Treasury yields have weakened by up to 20 points, its biggest reversion since June. Meanwhile, S&P 500 futures decreased by more than 3% and VIX futures increased by a total of 4%.

[AppleFX]

November 9, 2016

U.S elections brought damages to the state according to foreign policy experts

An interview conducted by CNBC with the President of Eurasia Group, Ian Bremmer stated that even the election has ended, the damages can still be felt in the United States because the country’s international allies worries about global trade agreements. Even after the vote casting, allies would struggle and lack confidence. This caused other countries to doubt the businesses in the United States, regardless who among Trump or Clinton will acquire the victory.

Bremmer further stated his predicted outcome about the tendency that the power in the Middle East more likely will be given to Iran, Israel, Saudi Arabia and Turkey. While in Europe, the issue regarding Brexit will become more vague and undetermined as it will endure longer process. On the other hand, in the Asian continent, China is expected to fill the demand vacuum since it has the capacity to expand worldwide as well as to globally invest to infrastructure assets.

[AppleFX]

November 9, 2016

Old India 500 and 1000 Banknotes are to be Replaced

All 500 and 1,000 rupee bills are to be removed from the financial system on Tuesday overnight according to Indian Prime Minister, Narendra Modi. Banks will be closed on Wednesday including ATM machines.

This is unexpected and people are rushing to have a cash in hand in smaller denominations like 100 rupees for the succeeding days to come. It has been announced that they can exchange their old bills within the next 50 days or else is no longer valid.

This move is an attempt to put an end to poverty by eradicating corruption especially those labeled as “black money” that were acquired through corruption or tax evasion. Finance secretary Shaktikant Das cautions people that the government will keep track those who are stacking bulk of money when they exchange the old bill to new ones.

[AppleFX]

November 10, 2016

Asian Market & USD Surged After Trump’s Victory

The Asian share market rallied from a strong sell-off yesterday soon after the U.S. Presidential election results a came out. Europe and U.S. Followed with the surge on Thursday contrary to the expected market breakdown since the financial market expects Hilary Clinton to win but instead, the victory of Donald Trump prompted investors to switch to safe haven stocks such as gold and yen.

Japan's Nikkei 225 index and Hong Kong's Hang Seng index rose by 6.7% and 2.1% respectively. The investors see the current U.S. Administration as an opportunity for businesses because of lower taxes, lesser regulatory burdens and other economic policies but still there is uncertainty on the outcome.

[AppleFX]

November 10, 2016

Gundlach strongly believe the good effect brought by Trump’s administration


The chief executive of DoubleLine Capital, Jeffrey Gundlach is one of the investors who believes that there is a common good on Trump’s victory over Clinton. Gundlach is certain about the bounce back happened in the US stock markets last night.

He also added that investors foresee that the Trump administration would likely bring better growth for the economy compared with the Democratic candidate, Hillary Clinton.

The so-called ‘Bond King’ further explained that the strong opposition of foreigners to Trump is the driving force for the overnight losses, however, profuse US investors did not agree with this.

Moreover, the Bond Fund Manager who voted for Trump predicted that there will be an improvement and inflationary pressures which seem unfavorable for the government bond that could cause debts. But Gundlach admires the fact that the next President supports also the policy for short-term interest rates.

[AppleFX]

November 10, 2016

Chinese Yuan Drops to Lowest Levels in Six Years as Trump-China Worries Increase

The Chinese Yuan dropped to its lowest levels in six years as concerns regarding a Trump victory and Chinese trade relationships with US increased, fueling speculations that the currency heading for its third loss in a year might be sold. The yuan dropped by 0.2% at 6.7907 per USD, its lowest since 2010, while its annual loss hit a record 4.4%. Decreases in value in relation to the USD were few and far in between after the central bank barely addressed the weakening yuan. Prior to his victory. Trump has targeted China, saying that the country is a “currency manipulator” and has stated that the US would be cutting back up to 45% off Chinese imports under his presidency, which could lead to China losing exports by up to 25% next year.

[AppleFX]

November 11, 2016 - Sterling Six-week Rallied Against Euro

Sterling rallied to a six-week high gaining 1.5% against Euro on Thursday. The investors flocked to put money into short positions despite the chaos and uncertainty brought by the results of U.S. Presidential election and the political risks involved in Europe.


The pound rallied to 86.70 pence, the strongest since the last week of September, against the depreciating Euro with all the important political and economic events such as the Italian plebiscite next month and the French Presidential election in the spring next year.

[AppleFX]

November 11, 2016
Emerging Markets Sell-Off Increases after Trump Victory
The sell-off in emerging markets exhibited an unexpected increase following concerns that developing economies around the world could possibly be hit by export drops and capital outflows once President-elect Trump assumes office. The Treasury market finished off the week with its worst outputs since 2009 prior to a US bank holiday on Friday. Donald Trump has previously outlined a more protectionist scheme and could introduce fiscal and economic stimulus which could prompt the Federal Reserve to increase the frequency of its interest rate hikes this coming 2017.

[AppleFX]

November 14, 2016

Australia Should Scrap its Largest Bank Notes like India - UBS Group AG

UBS analysts are saying that Australia should also scrap its big bank notes and follow in India’s footsteps, since this would be ultimately beneficial for the Australian economy as well as for Australian banks. Some projected benefits would include increase in bank deposits and tax revenues, while decreasing the occurrence of crime and fraud. India had previously made a move to remove its large banknotes as part of its crackdown on the country’s black economy as well as to counter tax evasion. The European Central Bank also stated last February that the central bank was discussing on removing 500 EUR banknotes since these high-value bills were often touted to be used for criminal and illegal purposes.

[AppleFX]

November 14, 2016

Higher volumes of exports boosted Japan's economy

The Japan's economy have seen greater improvement from the month of July until September due to a higher number of international trades. The country's GDP escalated to 2.2% within three months. Japan is greatly concern about the anti-free trade rhetoric supported by the newly-elect US President D. Trump since it is expected that this campaign would bother the Japanese region.

Subsequent to the results of the U.S elections, the yen curtailed versus the dollar. Hence, the country's good became cheaper in abroad, this brought positive talks for the foreign exporters. The world's third-largest economy accumulated a better-than- expected result of 0.5% while the forecast showed 0.2% only. However, some analysts who stated that the nation is relying much on exports and considered that these are windfalls only.

[AppleFX]

November 14, 2016

U.S. Dollars Strengthens Unabatingly That May Lead to Inflation

Greenback continues to surge with the unexpected win of Trump that signals inflation to take place sometime in the future. It climbed as high as 99.247 on Monday during Asian session from 97 handle prior to election. His principles advocated during his campaign such as protectionism, changes in immigration, infrastructures and debt spending set inflation back to the market at the same time, this would cause the U.S. Dollars to further appreciate in value. The U.S. 10-year Treasury yield rose more than 2 percent from 1.80 percent before election. This surge is expected to continue with short-term trend moves up, it is anticipated for U.S. Dollars to get stronger.

[AppleFX]

November 15, 2016

Chinese Industrial Production rose but retail sales slowed down

The economic activity of China was presumed to stabilize last month, however, retail sales fall off due to worries about the outlook of the US-China trade frictions under the administration of President Donald Trump. Moreover, the industrial sector performed a better-than-expected 6.1% growth in the month of October while the retail industry dropped an estimated 10% sales.

China’s fixed-asset investment further acquire 8.3% increase for the past 10 months of the present year, this result exceeded the expectation from January to October seeing the government allocated infrastructure expenditures in order to reinforce growth as shown in the official data on Monday.

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