Top Things to Know Today - page 14
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Spanish trade deficit falls 10.6% in March to -€795.9m
Latest Spanish data just out from the economics ministry 20 May 2016
Definitely some better news out from Spain this year.
Meanwhile EURUSD up to 1.1225 looking to test offers/res at 1.1230 again but EURJPY capped by 123.80 offers too. EURGBP on a charge though and sending GBPUSD down to 1.4553 in a hurry before running into fresh demand.
G7 Summit: Japan's Aso says he told US treasury sec Lew that recent FX market has shown rapid, one-sided moves
Japanese finance minister in earlier comments from Sendai 21 May 2016
So does one assume that they wanted to intervene but had their knuckles rapped by G7?
US treasury sec Jack Lew:
Seems like no love lost between Japan and US right now, a theme that Reuters picks up on in a piece here
I have to head away now. Very busy week-end ahead but I just wanted to bring some of the latest G7 headlines to you.
Fed's Harker: Can easily see 2, 3 Fed rate hikes in 2016
Philadelphia Federal Reserve president Patrick Harker
Daily Insight: UK GDP & Durable Goods Loom, Yellen Getting Ready
The midpoint of the business week ending May 27 brought several major updates which shaped the market mood, starting with the unexpectedly better trade balance figure in New Zealand.
April's release unveiled that the trade surplus spiked to NZD $292 million, heavily beating the forecast of NZD $25 million excess. This was mostly driven by upbeat exports at NZD $4.30 billion, better than the expected figure of NZD $4.08 billion.
As a result the kiwi was trading elevated against the buck, slightly below the $0.68 level, despite the US dollar index hitting a fresh two-month high at 95.66 amid the recently revived odds of a rate hike in June or July.
Later on, the German DAX index hit a one-month high amid the support of improved IFO figures, as all of them topped the forecast in May.
Meanwhile in the US, activity in the services sector stepped from a three-month high to 51.2 points in May, according to Markit's preliminary update. But the sentiment was influenced by acceptance of a rate hike among traders and rising oil prices.
Both crude oil benchmarks were seen higher on Wednesday following the biggest drop in stockpiles in seven weeks during the week of May 20, according to the Energy Information Administration.
Finally, gold futures declined to April's low, giving up approximately $60 in the last six days as a result of the Fed meeting minutes unveiled a week ago.
read more
Dollar Broadly Higher on Yellen Expectations
Although the moves on most major FX currency pairs were muted on Friday, the US dollar showed broad resilience as investors appeared to be cautiously upbeat ahead of a speech from Federal Reserve (Fed) Chair Yellen at Harvard University and US GDP data, both of which are likely to impact the expected timing of any US rate rise.
The US dollar index, the relative strength of US dollar against a basket of major currencies, added continuous gains from overnight trading to trade 0.17% higher at 95.326 ahead of the US market open.
The US dollar was seen slightly higher against its European peers, up 0.10% against the euro at $1.1182 and 0.09% versus the pound at $1.4653.
During overnight trading the US dollar found support in hawkish speeches from Federal Reserve (Fed) officials. In the last US session the Fed's Jerome Powell suggested the Fed should raise rates 'fairly soon' which provided support for the dollar.
read more
5 Things to Watch on the Economic Calendar This Week
1. U.S. nonfarm payrolls report
The U.S. Labor Department will release its May nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.
The consensus forecast is that the data will show jobs growth of 161,000 last month, following an increase of 160,000 in April, the unemployment rate is forecast to dip to 4.9%, while average hourly earnings are expected to rise 0.2% after gaining 0.3% a month earlier.
An upbeat employment report would help support the case for a summer rate hike by the Federal Reserve.
2. U.S. ISM PMI surveys
The U.S. Institute of Supply Management is to release data on May manufacturing activity at 14:00GMT, or 10:00AM ET, on Wednesday. The gauge is expected to inch down 0.3 points to 50.5. Anything above 50.0 signals expansion.
Meanwhile, the ISM is to report on May service sector activity on Friday, amid expectations for a modest decline.
3. European Central Bank policy meeting
The European Central Bank's interest rate decision is due at 11:45GMT, or 7:45AM ET, on Thursday, with most of the focus likely to be on President Mario Draghi's press conference 45 minutes after the announcement as well as updated inflation and growth forecasts.
The consensus is that the ECB will leave interest rates on hold and reaffirm its focus on implementing the stimulus package announced in March, which included purchases of corporate bonds and a new round of so-called TLTRO loans for banks, both due to kick off in June.
4. China manufacturing PMIs
The China Federation of Logistics and Purchasing is to release data on May manufacturing sector activity at 01:00GMT on Wednesday, or 9:00PM ET Tuesday, followed by the Caixin manufacturing index at 01:45GMT, or 9:45PM ET.
The official China's manufacturing purchasing managers' index is forecast to inch down 0.1 points to 50.0 in May, while the Caixin survey is expected to dip to 49.3 from 49.4 in the preceding month. A reading below 50.0 indicates industry contraction.
5. OPEC meeting
The Organization of Petroleum Exporting Countries will meet in Vienna on Thursday to review their output strategy. Most market analysts expect the oil cartel to keep their production quota unchanged amid rising prices.
The oil cartel’s most recent meeting in Qatar in April ended without agreement to freeze output at current levels due to Saudi Arabia's insistence that Iran be part of the agreement.
Top 5 things to watch today
Oil futures weaken slightly as dollar gains ground, Canadian output set to rise.
Iraq to supply 5 million barrels of extra crude to its partners in June: sources.
Dollar at 1-month high against yen after Yellen comments flag U. S. rate hike.
Asian stocks mostly higher, Europe at one-month highs with U.S. closed for Memorial Day.
Japan's Prime Minister Shinzo Abe reported to be delaying planned sales tax hike until 2019.
Eurozone Markit services PMI final 53.3 vs 53.1 flash
FInal Eurozone PMI data readings now out 3 June 2016
Better finals compensating a little for the individual softer readings
German Industrial Output Surprises on Upside in April: Destatis
Business activity in Germany's industrial sector accelerated over the fourth month of the year on a monthly basis, a fresh report from the German Federal Statistical Office (Destatis) showed on Tuesday.
Industrial production in Germany surprised on the upside in April, coming in at 0.8% on a monthly basis in the reported month, after a revised negative reading of 1.1% in the previous month.
Measured on an annual basis, factory output in Germany increased 1.2% in April, while markets had penciled in a 1.0% rise over the reported month.
Industrial production in Germany has continued to face volatile readings in the last couple of months, booking two negative and one positive reading in 2016.
The indicator measures the volume change in the output of German factories with a higher reading seen as positive, while it is also important as a valuable parameter for the overall economy. Industrial production quickly reacts to the business cycle of the whole economy.
Top 5 Things to Know In the Market on Tuesday
1. Global stocks higher after Yellen with World Bank forecast on tap
Global stocks moved higher on Tuesday after Federal Reserve (Fed) chair Janet Yellen pushed back expectations for policy tightening. While repeating on Monday that she expected interest rates to gradually rise, Yellen refrained from implementing the time frame of “in the coming months” as she had done in a May 27.
On a light economic calendar, market participants looked ahead to the World Bank that will update its global economic outlook at 20:01GMT, or 16:01ET.
Shares in Asia were mostly higher on Tuesday with Sydney up after the Reserve Bank of Australia holding rates steady at a record low 1.75%.
European stocks markets were also higher in early trade as German industrial production beat consensus and euro zone first quarter growth was revised higher. At 10:02AM GMT, or 6:02AM ET, the European benchmark Euro Stoxx 50 jumped 1.46%, the DAX gained 1.74%, the CAC 40 traded up 1.31% while London's FTSE 100 advanced 0.63%.
U.S. futures continued the post-Yellen rally pointing to a higher open on Tuesday. The Dow Jones Industrial Average futures pointed to a 0.33% gain, S&P 500 futures advanced 0.31%, while the Nasdaq 100 futures indicated a 0.37% rise.
2. Pound spikes 1% as Brexit polls give lead to ‘Remain’ campaign
The pound moved higher as two new polls on the June 23 referendum on the U.K.’s membership in the European Union showed the “remain” camp with a slight lead, reducing jitters that the vote could lead to a Brexit.
GBP/USD was up 0.93% at 1.4575, though sterling spiked to an intraday high at $1.4656. There was talk that the sudden surge might have been due to a “fat finger” error.
3. Oil trades near 8-month highs amid global supply disruptions
Oil prices pushed higher on Tuesday as investors continued to weigh the cuts in production from attacks on Nigerian pipelines and expectations for a decline in U.S. crude inventories bolstered sentiment.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 3.5 million barrels in the week ended June 3.
U.S. crude oil futures rose 0.38% to $49.39, at 10:04AM GMT, or 6:04AM ET, while Brent oil advanced 0.26% to $50.68.
4. China’s FX reserves hit 5-year low
China's foreign exchange reserves shrank for the first time in three months in May, falling to the lowest level since December 2011, official data showed on Tuesday.
China’s foreign exchange reserves dropped by $27.98 billion last month to $3.19 trillion, according to data released by the People's Bank of China.
Market experts suggested that the drop was due to the stronger dollar against the yuan.
5. Clinton clinches Democratic nomination for president
Hillary Clinton clinched the Democratic presidential nomination after obtaining the required 2,383 delegates, making her the first female nominee to lead the White House.
Clinton had reached the minimum number of delegates required even before primaries in six states on Tuesday, including California and New Jersey.