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InstaForex Gertrude · Guru

Japan Labor Demand Grew in December

Labor demand in Japan increased in December to its highest in over 40 years, which could provide labor unions extra leverage in impending spring wage negotiations.

The jobs data implies that employers may be more likely to heed the government's call to increase wages by three percent or more at annual negotiations with unions this spring, boosting the chance that consumer spending and inflation will accelerate.

The jobs-to-applicants ratio climbed to 1.59 from 1.56 in November, which is the highest since January 1974.

The seasonally adjusted jobless rate rose to 2.8 percent from 2.7 percent in November, according to the Internal Affairs ministry. Economists' median forecast was for the jobless rate to remain at 2.7 percent, the lowest since November 1993.

Retail sales grew in December by the most in nearly three years on higher spending on cars and clothes, separate data showed, which could ease concerns about a sudden drop in household spending in the same month.

Sales were 3.6 percent higher in December from the previous year, compared with a median market forecast for a 1.8 percent rise. That also recorded the biggest increase since a 4.9 percent annual increase in April 2015.

Japanese household spending, which is different from retail sales because it is based on surveys sent to a small sample of consumers, dropped 0.1 percent in December from a year earlier in price-adjusted real terms.

Japan marked seven consecutive quarters of economic growth to end-September, its longest uninterrupted stretch of expansion since 1994.

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InstaForex Gertrude · Guru

European Economics Preview: Eurozone GDP Data Due

Quarterly national accounts and economic confidence from euro area are due on Tuesday, headlining a light day for the European economic news.

At 1.30 am ET, France's GDP data is due. The economy is expected to grow 0.6 percent in the fourth quarter. At 2.00 am ET, Swiss foreign trade data for December is due.

At 3.00 am ET, GDP from Spain and unemployment from Hungary are due. Spain's GDP is forecast to grow 0.7 percent sequentially in the fourth quarter, slower than the 0.8 percent increase seen in the third quarter.

At 4.00 am ET, Italy's business and consumer confidence survey results are due. The consumer sentiment index is forecast to rise marginally to 116.7 in January from 116.6 in the previous month.

At 4.30 am ET, the Bank of England is set to issue mortgage approvals data. The number of mortgages approved in December is seen at 63,500 compared to 65,100 in November.

At 5.00 am ET, Eurostat is scheduled to issue euro area GDP data. The currency bloc is forecast to grow 0.6 percent sequentially in the fourth quarter.

In the meantime, European Commission publishes economic confidence survey data. Economists forecast the economic sentiment index to rise to 116.2 in January from 116.0 in December.

At 8.00 am ET, Germany's flash consumer price data is due. Inflation is seen at 1.7 percent in January, the same rate as seen in December.

In the meantime, Hungary's central bank announces its interest rate decision. The bank is expected to keep its key rate unchanged at 0.90 percent.

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InstaForex Gertrude · Guru

COLOMBIA: Colcap Trades 1.34% Lower Due To Ecopetrol's Underperformance

Colcap, the main index of the Colombian Stock Exchange, fell 1.34% to 1,576.89 points near to the closing of Tuesday's session, due to the fall in Ecopetrol's shares.

Erika Baquero, an analyst at Alianza Valores, noted that the state-owned oil company was influenced by the decline in oil prices abroad.

The shares of Canacol (+0.20%) are rising, while Ecopetrol (-3.06%), Promigas (-3.04%), Sura (-1.73%), and Avianca (-1.37%) trade lower.

The locally traded U.S. dollar closed at 2,851.15 Colombian pesos, marking a 0.47% rise due to the drop in oil prices abroad.

Ramses Pestanapalmett, an analyst at Ultraserfinco, noted that the commodity falls due to the increase in exploratory activities in the United States and Canada, which values the U.S. currency against emerging currencies such as the Colombian peso.

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InstaForex Gertrude · Guru

German Inflation Slowed in January

German inflation slowed in January, propelled by a weaker rise in energy prices, data showed, lending support to the European Central Bank's cautious approach to reducing its monetary stimulus only gradually.

Consumer price inflation slowed to 1.4 percent on the year in January, according to preliminary data from the Federal Statistics Office.

The rate follows a month-on-month drop of one percent from December 2017, on an EU-harmonised basis, Destatis added, and implies that the rising euro is damping down prices.

ECB chief Mario Draghi recently pushed back on rate hike speculations, arguing there was almost no chance of a move this year, even as some investors were betting on a hike as early as December.

For the month, consumer prices dropped 1.0 percent, below the 0.7 percent decline expected by analysts.

Lower energy inflation made the largest contribution to the weaker headline figure while food inflation picked up, the office said.

According to Carsten Brzeski, chief economist for Germany at ING, the figures should ease the recent hysteria in markets about a possible inflation surge and changes to the ECB's monetary policy stance.

The statistics office did not provide a preliminary reading for German core inflation.

However, Commerzbank analyst Marco Wagner said that core inflation probably remained unchanged in January and that he expected this key measure to rise in the coming months.

The German government expects national consumer price inflation to slow to 1.7 percent this year from 1.8 percent in 2017, despite raising its 2018 growth forecast to 2.4 percent from 1.9 percent previously, a government document showed.

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InstaForex Gertrude · Guru

China Manufacturing PMI Holds Steady In January - Caixin

The manufacturing sector in China continued to expand in January, and at a steady pace, the latest survey from Caixin showed on Thursday with a Manufacturing PMI score of 51.5.

That was in line with expectations and unchanged from the December reading.

It also remained above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, growth was supported by further, albeit slightly softer, increases in total new work and new export sales.

Higher production requirements led firms to increase their buying activity, while employment fell at the weakest pace in nearly three years.

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InstaForex Gertrude · Guru

UK Consumer Morale Improves in January

UK consumers began 2018 in a less downbeat mood as Brits reported improved confidence in their financial situation for the coming year, according to a survey.

Research house GfK's consumer confidence index increased by 4 points to -9 in January.

The score reflects an improvement in consumers' views on their personal financial situation over the past 12 months as well as improved expectations for the year ahead. Consumer views of the U.K.'s economic situation in the past year and in the coming 12 months also improved.

All five measures used to calculate the index increased in January as the demand for major purchases, like furniture or washing machines, saw the biggest rise, climbing by five points to one. The index tracking the personal financial situation over the next 12 months increased to six from two in December while the outlook for the general economy edged higher to -24 from -28 in the previous month.

However, Joe Staton, head of market dynamics at GfK, cautioned that the headline measure of consumer confidence remained in negative territory and was lower than at the same time in 2016, when it stood at -5.

"In the absence of good news about rising wages and declining inflationary pressures, this off-trend number could be a temporary blip rather than a strong sign of recovery," Staton said.

Inflation stood at three percent in December, close to the quickest in nearly six years. Wage growth has failed to keep pace with the acceleration, fueled by the pound's drop in 2016. It may ease this year, and sterling's recent appreciation could help.

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InstaForex Gertrude · Guru

Australia Producer Prices Climb 0.6% In Q4

Final demand producer prices in Australia were up 0.6 percent on quarter in the fourth quarter of 2017, the Australian Bureau of Statistics said on Friday - following the 0.2 percent gain in the three months prior.

The increase was mainly due to rises in the prices received for petroleum refining and petroleum fuel manufacturing (+11.9 percent), heavy and civil engineering construction (+0.7 percent) and building construction (+0.4 percent).

They were partly offset by falls in the prices received for sugar and confectionery manufacturing (-3.9 percent), tobacco product manufacturing (-3.8 percent) and sheep, beef cattle and grain farming; and dairy cattle farming (-3.6 percent).

On a yearly basis, producer prices jumped 1.7 percent - up from 1.6 percent in Q3.

Intermediate demand producer prices were up 1.2 percent on quarter and 3.1 percent on year, while preliminary demand producer prices advanced 1.3 percent on quarter and 3.0 percent on year.

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InstaForex Gertrude · Guru

European Markets Lower on Corporate Earnings

European stocks ended lower on Thursday, as investors reacted to a series of corporate earnings and monitored declines from Wall Street.

The pan-European Stoxx 600 closed provisionally down half a percent, with almost most sectors and major bourses in the red. Germany's DAX led national indexes lower, down 1.4 percent.

Telecommunications stocks were among the worst performers, dragged down by Danish telecoms operator TDC. Shares of TDC slumped toward the bottom of the pan-European benchmark after reports it had reached a deal to buy Swedish Modern Times Group's broadcasting and entertainment's business. The firm's stock fell eight percent.

Vodafone reported its latest figures. The world's second-largest mobile operator reported a 1.1 percent rise in organic revenue for its third quarter, citing intense competition in Spain and Italy. Its shares were down over four percent.

AFS analyst Arne Petimezas said declines by stocks were driven by expectations of tighter central bank policy and by a sell-off on the bond market.

Eurozone government bond yields rose across the board on Thursday. Germany's 10-year government bond yield, the benchmark for the euro zone, hit a two-year high.

Oil giant Royal Dutch Shell reported that profits more than doubled in the fourth quarter of 2017 on Thursday, supported by a recent rally in oil and gas prices. Its shares were trading more than 2 percent lower, however.

Spain's second-largest bank, BBVA, reported a 90 percent fall in fourth-quarter net profit when compared to the same period a year earlier. The lender cited a 1.1 billion euro ($1.4 billion) writedown on its Telefonica stake. Shares of BBVA were down more than 1 percent.

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InstaForex Gertrude · Guru

Gold Eases on Stronger Dollar after Upbeat Jobs Data

Gold prices edged down early on Monday on a stronger dollar following a positive U.S. jobs data published late last week, but a decline in stocks cushioned the fall.

Spot gold has fallen 0.1 percent to $1,331.80 per ounce. Spot gold on Friday declined by 1.2 percent, marking its biggest one-day decline since December 7. In the previous week, the precious metal experienced its biggest weekly fall since the week ending December 8.

U.S. gold futures traded down 0.1 percent at $1,336 per ounce.

In January, non-farm payrolls increased by 200, 00 jobs, according to the Labor Department, surpassing the expected 180, 000 increase and their biggest annual gain in over eight and a half years.

Average hourly earnings increased and bolstered the annual gain to 2.9 percent, the biggest since June 2009.

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InstaForex Gertrude · Guru

China Private Sector Growth At 7-Year High

China's private sector activity expanded at the quickest pace in seven years in January, survey data from IHS Markit showed Monday.

The Caixin composite output index, which covers both manufacturing and services, climbed to 53.7 in January from 53.0 in December.

Any reading above 50 indicates expansion in the sector.

Service sector activity grew at the fastest pace since May 2012. The seasonally adjusted General Services Business Activity Index rose to 54.7 in January from 53.9 in the preceding month.

At the same time, manufacturers signaled the quickest upturn in production levels since December 2016.

Composite employment rose slightly, after broadly stagnating between August and December last year.

"Caixin PMI readings in January showed that the Chinese economy had a good start to 2018," Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said.

"Looking forward, we should watch for stability of demand in the manufacturing industry and the impact of growing costs on the profitability of service providers."

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InstaForex Gertrude · Guru

Australia Keeps Rates On Hold

Australia's central bank decided to leave its key interest rate unchanged at a record low, as widely expected, on Tuesday.

The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at 1.50 percent. The bank had reduced the rate by 25-basis points each in August and May last year.

The bank noted that the low level of interest rates is continuing to support the Australian economy.

The Bank's central forecast for the Australian economy is for GDP growth to pick up, to average a bit above 3 percent over the next couple of years.

The central forecast is for CPI inflation to be a bit above 2 percent in 2018.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

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InstaForex Gertrude · Guru

Gold Prices Stable as Global Equity Markets Hit by Selloff

Gold prices were on steady footing on Tuesday, lifted by a slump in global stock markets but pressured by bets for additional rate hikes by the U.S. Federal Reserve this year.

Spot gold was mostly unchanged at $1,338.62 an ounce, after ending up 0.5 percent on Monday. The precious metal on Friday edged up 0.5 percent on Monday.

Gold fell 1.2 percent on Friday in its biggest one-day drop since December 7. In the previous week, the metal saw its biggest weekly decline since the week ending December 8. U.S. gold futures edged up 0.4 percent at $1,342 per ounce.

Last week, the U.S. Federal REserve stood pat on interest rates, but lifted its inflation outlook and signaled more gradual interest rate increases.

Stock markets retreated around the world as a rebound in U.S. inflation raised the possibility that the FEd would tighten monetary policy at a more aggressive pace than priorly expected.

However, U.S. bond yields surged on Monday as traders eased expectations the Fed would accelerate its clip of interest rate increases in the aftermath of a dramatic sell-off in the U.S. stock market, with the Dow losing more than 1, 000 points.

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InstaForex Gertrude · Guru

BRAZIL: Ibovespa Up 2.5% Rebound From Monday's Sharp Decline

The Ibovespa rose 2.48% Tuesday, closing at 83,894.03 points in a day of rebound after Monday's turmoil in the U.S. markets. On the domestic front, Ita? Unibanco's result fueled financial sector stocks.

"Yesterday was a test for the market as a whole. That signaled that if interest rates rise in the United States, the market could collapse. But the message given today is clear: raising with volume above R$ 16.9 billion means that the market is bought and which yesterday was just a scare," said the chief economist of Codepe brokerage, Jos? Costa.

For the chief economist of Gradual Investimentos, Andr? Perfeito,Tuesday's rise was led by the rebound from Monday's drop.

In the business segment, Ita? Unibanco's fourth-quarter results stimulated a 3.59% increase in the bank's shares and helped financial sector stocks such as Bradesco and Banco do Brasil to rise 2.38% and 4.38%, respectively.

For Wednesday, Perfeito foresees that the Brazilian market should continue to track foreign markets and that the result of the meeting of the central bank's Monetary Policy Committee (Copom) is already priced. Costa, however, sees room for the index to continue rising, without the external interference.

Meanwhile, in a day of volatility, with global assets reversing the stress of Monday's session in adjustments, the locally traded U.S. dollar closed down, but near to stability (-0.03%), quoted at R$ 3.247.

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InstaForex Gertrude · Guru

U.S. Yields Pare Losses as Stocks Recover from Selloff

Treasury yields reversed some of their losses but still closed lower after stocks rallied from the prior day's rout that drove investors toward safe havens and pushed bond prices up.

The yield on the 10-year Treasury notes edged down 2.8 basis points to 2.766 percent, after having declined to as low as 2.648 percent. The benchmark yield had climbed to a four-year peak of 2.883 percent on Monday. Two-year note yield was mostly unchanged at 2.091 percent, while the 30-year rate was down 2.3 basis points to 3.043 percent.

Yields on the 10-year German bund shed 4.6 basis points to 0.691 percent, according to Factset data.

Appetite for safe-haven bonds eased after stocks jumped a day after a historic selloff in the U.S. equities markets when the Dow Jones Industrial Average observed its biggest one-day decline in history. Investors tend to shift towards bonds and other safe-haven assets whenever there is chaos in riskier assets, such as stocks.

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InstaForex Gertrude · Guru

Japan Current Account Surplus Falls To Y797.2 Billion

Japan posted a current account surplus of 797.2 billion yen in December, the Ministry of Finance said on Thursday - down 28.5 percent on year.

The headline figure was shy of expectations for a surplus of 1,056.9 billion yen following the 1,347.3 billion yen surplus in November.

The trade balance showed a surplus of 538.9 billion yen, exceeding expectations for 520.4 billion yen and up from 181.0 billion yen in the previous month.

Exports climbed 8.8 percent on year to 7.271 trillion yen, while imports jumped 14.6 percent to 6.732 trillion yen.

The capital account showed a deficit of 18.7 billion yen, while the financial account saw a surplus of 1.885 trillion yen.

The adjusted current account surplus was 1,479.6 billion yen - missing forecasts for 1,660.0 billion yen and down from 1,700.5 billion yen a month earlier.

For all of 2017, the current account surplus was 21.874 trillion yen.

Also on Thursday, the Bank of Japan said that overall bank lending in Japan was up 2.4 percent on year in January, coming in at 523.068 trillion yen.

That follows the 2.5 percent increase in December.

Excluding trusts, bank lending was up an annual 2.3 percent to 454.911 trillion yen following the 2.4 percent gain in the previous month.

Lending from trusts climbed 2.5 percent to 68.157 trillion yen, while lending from foreign banks surged 14.0 percent to 2.433 trillion yen.

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InstaForex Gertrude · Guru

Bitcoin Posts Sharp Gains after Recent Slump

Bitcoin rallied along with solid gains in other cryptocurrencies on Wednesday.

According to CoinDesk, the biggest digital currency based on market capitalization traded 9.5 percent higher above $8, 400. The rally marked an increase of over $2, 000 in just over a day.

The gains came after a Senate Banking Committee hearing on Tuesday on cryptocurrencies in with the chairmen of the Commodity Futures Trading Commission and the Securities and Exchange Commission underlined consumer protection without a heavy-handed prohibition on the development of virtual assets. The agency heads also said Treasury Secretary Mnuchin is gathering several federal agencies to draft out the regulation on the fast-expanding industry.

Before the hearing, bitcoin slid below $6, 000 to $5, 947.40, its lowest level since November 13 amid a slump in U.S. stocks. The S&P 500 edged up late Tuesday to end 1.7 percent up, but stock index futures indicated a lower open on Wednesday.

Other cryptocurrencies traded up. Ethereum advanced 5.6 percent to $838, ripple climbed 2.3 percent and bitcoin cash rose almost 4.8 percent, according to COinMarketCap.

On a 24-hour basis, the biggest cryptocurrencies by market cap posted double-digit gains. Bitcoin continues to be almost 17 percent lower for the month and down 39 percent down for 2018 so far.

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InstaForex Gertrude · Guru

China Consumer Prices Rise 1.5% On Year In January

Consumer prices in China were up 1.5 percent on year in January, the National Bureau of Statistics said on Friday.

That was in line with expectations and down from 1.8 percent in December.

On a monthly basis, consumer prices advanced 0.6 percent - up from 0.3 percent in the previous month.

The bureau also said that producer prices were up 4.3 percent on year - exceeding expectations for 4.2 percent but down from 4.9 percent a month earlier.

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InstaForex Gertrude · Guru

Benchmark U.S. Yield Remain on Upward Path even as Stocks Plunge

Treasury Yields rebounded on Thursday as edgy investors drove down stock benchmarks significantly lower in another dramatic and volatile session on Wall Street driven by inflation concerns, but the benchmark 10-year note clung to an upward movement.

The yield for the 10-year Treasury note stood at 2.848 percent, rising 0.8 percent, after recording an intraday high of 2.875 percent. The two-year note yield fell 0.4 basis point to 2.130 percent, while the 30-year bond rate edged up 1.8 basis point to 3.134 percent.

After a short-lived flight to safe haven assets drove yields lower on Monday, with the Dow Jones Industrial Average losing over 800 points at its lowest, government paper saw a resumption in selling, pushing yields up again.

A rally in bonds helped to reverse the selloff after the Bank of England said that strong inflation could accelerate the schedule of rate hikes, putting pressure on British government bonds. BoE's Monetary Policy Committee voted unanimously to retain interest rates at 0.5 percent. The central bank has received criticism from analysts arguing that the country's borrowing rates are too low as the weak pound has stoked inflationary pressures.

The 10-year UK bond yield surged 7.9 basis points to 1.617 percent, according to Tradeweb. Meanwhile, the sterling rallied to $1.3914, rising from $1.3882 before the BoE report.

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InstaForex Gertrude · Guru

UK Consumer Spending Remains in Second Gear in January: Visa

British consumers spend less in January compared to the same period a year ago, causing spending last month to mark its first decline since 2013, according to a survey.

Visa, whose debit and credit cards are utilized for a third of payments in the UK, reported on Monday that consumers had a stronger control on spending for the traditional post-Christmas sales in the previous month.

Household spending declined by 1.2 percent in January against the same month in 2017, with spending in shops falling by 4 percent, Visa reported.

A decline in car sales affected the overall sales numbers too. But things were more upbeat for hotels and restaurants, as well as for hair salons and beauty product sellers, as consumers looked for little luxuries for themselves.

Britain's economic growth has fallen behind the more solid expansion in other affluent countries in 2017 as higher inflation since the Brexit vote and weak growth squeezed consumers' spending power.

Annabel Fiddes of IHS Markit said worries regarding Brexit were affecting consumer confidence. However, spending could gain momentum later this year as inflation is anticipated to retreat will wages increase more quickly, she added.

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IFX Yvonne · Veteran Member

Ireland Consumer Sentiment At 17-Year High

Ireland's consumer confidence reached a 17-year high in January reflecting robust economy, survey results from KBC Bank and the Economic and Social Research Institute showed Monday.

The consumer sentiment index rose to 110.4 in January from 103.2 in December. This was the highest score since February 2001.

However, the survey suggested that the improvement was largely driven by bargain hunting in post-Christmas sales. This strong 'seasonal' element to jump in January may be reversed in coming months, the survey cautioned.

An improvement in all five main components of the survey points to a distinct improvement in the mood of Irish consumers at the start of 2018.

The index of current conditions improved to 129.6 from 122.9 a month ago. Likewise, the index of consumer expectations came in at 97.5, up from 90 in December.

The general economic outlook index climbed to 73.4 from 65.3. Similarly, the outlook for employment index rose to 98.0 from 94.3 in the previous month.

The indicator measuring past personal financial situation improved to 108 and that for coming twelve months gained to 125.6.

Austin Hughes, KBC Bank Ireland, said, "The sharp rise in sentiment in January partly reflects the continuing improvement in the Irish economy that now seems to be reaching more broadly across Irish consumers."

-- Edited by IFX Yvonne on Monday 12th of February 2018 07:09:18 AM

InstaForex Gertrude · Guru

U.S. Yields Rally as Investors Eye Inflation Report

U.S. government bond prices continued their decline, driving yields up, as investors looked forward to the coming inflation report that could reaffirm the bearish sentiment on Treasury bonds.

The 10-year Treasury note yield advanced 2.7 basis points to 2.857 percent, but retreated from a four-year peak of 2.891 percent hit earlier in the day.

The 30-year bond rate was almost unchanged at 3.138 percent but reached its highest level since March 2017, according to WSJ Market Data Group. Meanwhile, the two-year note yield recorded a gain of 1.7 basis points to 2.077 percent.

Bond markets experienced selling pressure as a mixture of inflation worries, increasing budget deficits and the Federal Reserve's move to unwind its balance sheet have affected the demand for U.S. government bonds. Treasury issuance is expected to increase at the same time the U.S. government can no longer depend on a price-insensitive Fed to absorb the coming supply.

Higher rates were said to be the cause of a deep correction that sent stocks plunging. The Dow Jones Industrial Average, the S&P 500 index and the Nasdaq Composite Index traded down over 5 percent in the previous week. Stocks look less attractive on several valuation indicators if the benchmark 10-year yield rises to high.

However, stocks rallied on Monday to record back-to-back increases, with the Dow rising over 400 points.

Investors are now expected to focus on the consumer-price index report on Wednesday, a possible turning point as investors faulted the strong reading on the wage index of the January jobs report as the main reason for the market turmoil.

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InstaForex Gertrude · Guru

Australia Business Confidence Index Rises To +12 - NAB

Business confidence in Australia ticked higher in January, the latest survey from the National Australia Bank revealed on Tuesday with an index score of +12.

That's up from the downwardly revised +10 in December.

The NAB also said that its index for business conditions jumped to +19 from +13 in the previous month.

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InstaForex Gertrude · Guru

Australia Jobless Rate Eases To 5.5% In January

The unemployment rate in Australia came in at a seasonally adjusted 5.5 percent in January, the Australian Bureau of Statistics said on Thursday.

That was in line with expectations following the upwardly revised 5.6 percent reading in December (originally 5.5 percent).

The Australian economy added 16,000 jobs last month - beating forecasts for 15,000 following the downwardly revised 33,500 increase in the previous month (originally 34,700).

The participation rate came in at 65.6 percent - matching expectations and down from 65.7 percent a month earlier.

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InstaForex Gertrude · Guru

Wall Street Gains as Dow Jumps 253 Points

U.S. stocks increased sharply on Wednesday, hitting a four-day winning streak as banks and tech lifted major indexes higher.

The Dow Jones industrial average closed 253.04 points higher at 24,893.49 after dropping as much as 150 points. Goldman Sachs contributed the most to the gains, climbing 2.8 percent. The 30-stock index also pared all of its 2018 losses and reported its longest winning streak since Jan. 5.

The S&P 500 rose 1.3 percent to 2,698.63, with financials and tech each gaining over 1.5 percent. Bank of America, J.P. Morgan Chase, Citigroup and Morgan Stanley all traded higher. The financials sector had its best day since Nov. 28. The index also turned positive for 2018.

The Nasdaq composite climbed 1.9 percent to end at 7,143.62, as shares of Facebook, Amazon, Netflix and Alphabet increased.

U.S. equities opened lower on the back of stronger-than-expected inflation data.

Seven of the 11 major S&P 500 sectors were higher. The decliners included the typically defensive sectors: consumer staples, utilities and real estate.

The CBOE Volatility index was down at 21.10 points, slipping below 20 for the first time since Feb. 5 and well off the 50-point mark it hit during last week's sell-off.

The SPDR S&P Bank exchange-traded fund (KBE), rose 2.9 percent and posted its best day since Nov. 29.

Concerns of rising inflation have recently weighed down Wall Street. Last week, all three major U.S. indexes finished the five-day trading period more than five percent down each, with the Dow delivering its worst performance since January 2016.

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InstaForex Gertrude · Guru

Japan Export Growth Accelerates in January

Japanese exports increased for the fourth straight month in January as shipments to Asian and western Europe grew.

Exports climbed 12.2 percent year on year in January, figures according to the Ministry of Finance. Exports increased 9.3 percent in December.

Outbound shipments to Asia were up 16 percent while those to western Europe rose 20.8 percent. Imports also increased in January, climbing 7.9 percent year on year, short of the 8.3 increase percent forecast by economists.

U.S.-bound shipments were 1.2 percent higher in the year to January, led by steel, batteries and medicines, while car shipments declined 3.9 percent. The small rise in U.S.-bound exports followed a 3.0 percent gain in the previous month.

Those numbers resulted in a trade deficit of ¥943.4 billion ($8.9 billion). Economists expect exports will continue to expand in the coming months, led by demand for the semiconductor-related products that lifted exports in 2017.

Analysts are also wary about a rising yen as well as the U.S. stance towards protectionism ahead of the mid-term elections later this year, and potential effects on Japan's exports of cars and other products.

A strong yen erodes profits at Japanese manufacturers and could hurt the otherwise buoyant economy, which posted an eighth consecutive quarter of growth in October-December.

The yen was flat against the dollar at ¥106.31 following the publication of the trade figures.

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InstaForex Gertrude · Guru

New Zealand Services Growth Robust In January

New Zealand's service sector activity continued to expand strongly in January, survey figures from Business NZ showed Monday.

The performance of services index, or PSI, dropped to 55.8 in January from 56.0 in December. However, any reading above 50 indicates expansion in the sector.

The sub-index for new orders fell below the 60.0 point mark for the first time since April last year. It declined to 57.6 from 60.1.

"While the PSI is relatively robust, combined with the Performance of Manufacturing Index it nonetheless signals something of a slowing in GDP growth for the near term," Craig Ebert, senior economist at Business NZ, said.

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InstaForex Gertrude · Guru

Australia's Consumer Confidence Weakens Further

Australia's consumer confidence weakened for the second straight time during the week ended February 18, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed Tuesday.

The consumer confidence index dropped to 115.3 from 119.5 in the preceding week. Views towards current economic conditions fell 5.5 percent last week, bringing the sub-index to an eight-week low of 107.0.

Similarly, perceptions of future economic conditions declined to a 13-week low of 106.3.

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InstaForex Gertrude · Guru

EU Names Spains de Guindos as Next ECB Vice-Chair

Eurozone's finance ministers selected Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move that is seen to increase the odds of a German official becoming the head of the central bank next year.

Choosing a Southern European for the position increases the possibility that a northerner such as German Bundesbank governor Jens Weidmann could be voted to take the place of Mario Draghi as the leader of the ECB in 2019. The decision could have an impact to the bank's ultra-loose monetary policy for the common currency zone.

In a statement released by the EU following a short discussion among finance ministers, the Eurogroup backed the candidacy of Luis de Guindos for the position of Vice President of the European Central Bank. After the selection, De Guindos said he would step down from his post as Economy Minister within days.

A number of EU legislators opposed his appointment as ECB Vice-President on worries that the nomination of a politician could impact the independence of ECB, a criticism that was dismissed by De Guindos.

Initially, there were two candidates for the post: De Guindos and Irish central bank governor Philip Lane. Ireland decided to withdraw Lane's name for the position.

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InstaForex Gertrude · Guru

Walmart Shares Tumble on Weaker Holiday Online Sales

Walmart shares tumbled after posting weak online sales for the Christmas period and issuing a disappointing annual profit forecast.

In the three months to December, online sales were 23 percent higher. However, the increase was less than half the growth seen in the prior quarter and down from the same period in 2016.

Shares in the world's biggest retailer declined more than 10 percent to $94.11. This year through Friday's close, the stock has risen by 6.1 percent.

The retailer reported its online revenue clocked in at $11.5 billion in 2017, but it suffered losses on the said sales. CEO Doug MCMillon said e-commerce losses would be about the same for the current fiscal year. He said that the firm was making progress in its efforts to be at the same level with Amazon and other competitors.

Under its transformation strategy, Walmart will spend more on Walmart.com and reduce spending on marketing for its Jet.com website, which targets younger and more affluent shoppers.

Despite higher-than expected sales growth at Walmart's U.S. stores, which came in at 2.6 percent, net profit declined 42 percent to $2.2 billion.

Walmart expects earnings of $4.75 to $5 per share this financial year, excluding some items, against the estimate of $5.13 by Wall Street.

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InstaForex Gertrude · Guru

Japan All Industry Activity Grows At Slower Pace

Japan's all industry activity growth halved in December, the Ministry of Economy, Trade and Industry reported Wednesday.

The all industry activity index rose 0.5 percent month-on-month in December, following November's 1 percent increase. Nonetheless, this was the third consecutive increase in activity and bigger than the expected 0.4 percent rise.

Industrial production advanced 2.9 percent, while construction activity shrank 0.4 percent and tertiary industry activity contracted 0.2 percent in December.

On a yearly basis, all industry activity growth slowed to 1.8 percent in December from 2 percent a month ago.

In the fourth quarter, all industry activity rebounded 0.7 percent after declining 0.3 percent in the third quarter.

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InstaForex Gertrude · Guru

ARGENTINA: Merval Rises As Fed Minutes Point To Gradual Increase In U.S. Rate

Merval, the main index of the Buenos Aires Stock Exchange, rose 0.85%, closing at 33,108.16 points, in a volatile session, after the Federal Reserve meeting minutes showed that the U.S. central bank will move gradually towards higher interest rates.

"The main US stock indices increased following the minutes of the Federal Reserve. The local market was not kept aside," said Eduardo Fern?ndez, an analyst at Rava Burs?til.

Ternium Siderar shares rose 0.32% even after the company reported a consolidated net profit of result of 848.1 million pesos for the fourth quarter of 2017, 10.12% lower compared to the same period of the previous year.

The Argentinean state-owned oil company YPF also ended higher (+1.22%) after starting the sale of its stake in Metrogas, dedicated to the distribution of natural gas.

The oil company Vista Oil & Gas reported that it agreed to acquire an oil operating platform of Pampa Energ?a (+2.51%) and Pluspetrol Resources Corporation in Vaca Muerta.

The shares of Distribuidora de Gas Cuyana (-2.36%), TGS (-2.34%), San Miguel (-1.38%), and Tenaris (-,86%) fell the most, while Cresud (+5.16%), Holcim (+4.15%), and Autopistas del Sol (+3.68%) posted the strongest gains.

The locally traded U.S. dollar rose 0.37%, to 19.92 Argentinean pesos, due to lower interest rates from Lebacs, the country's central bank bonds.

"The drop in the interest rate set by the central bank to the Lebac left the greenback without a clear trend, with sudden ups and downs amid a sharp drop in the trading volume," said Fernando Izzo, an analyst at ABC Mercado de Cambios.

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InstaForex Gertrude · Guru

Eurozone Business Growth Remains Firm in February

Eurozone business growth remained strong in February, with companies at their most optimistic in over five years, a private-sector survey showed.

The eurozone was one of the best-performing major economies in 2017, and its businesses started 2018 by ramping up activity at the quickest rate in well over a decade.

However, February's preliminary Purchasing Managers' Index (PMI) indicated that the pace of growth set in January, the fastest in well over a decade, has lost a little momentum.

IHS Markit's composite flash PMI for the euro zone, seen as a good guide to economic health, dropped to 57.5 in February.

Nevertheless, this month's reading was still one of the most growth - or farthest above 50 - in more than 11 years. According to IHS Markit, the eurozone was on track for its best quarterly growth since the second quarter of 2016, with the PMI pointing to first-quarter growth of 0.9 percent.

Companies shared that optimism - an index measuring expected output in a year's time climbed to 68.3 from 68.0, its highest since IHS Markit started collecting the data in July 2012.

Consumer confidence in the bloc dropped more than expected this month, but that was from a 17-year high set in January, official data recently showed.

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InstaForex Gertrude · Guru

Japan Overall Nationwide Inflation Advances 1.4% In January

Overall nationwide consumer prices in Japan climbed 1.4 percent on year in January, the Ministry of Internal Affairs and Communications said on Friday.

That exceeded forecasts for 1.3 percent and was up from 1.0 percent in December.

Core CPI, which excludes food prices, advanced an annual 0.9 percent - above expectations for 0.8 percent and unchanged from the previous month.

Among the individual components, prices were higher annually for fuel, medical care, food, transportation and education, while they were down for furniture and housing.

On a monthly basis, overall inflation added 0.4 percent and core CPI gained 0.2 percent.

Among the individual components, prices were higher monthly for food, fuel and furniture, while they were down for clothing, recreation and medical care.

Also on Friday, the Bank of Japan said that producer prices in Japan were up 0.7 percent on year in January.

That was shy of expectations for a gain of 0.8 percent, which would have been unchanged from the previous month.

On a monthly basis, producer prices were down 0.6 percent after adding 0.2 percent in December.

Prices were down for leasing, transportation and financial services, while they were higher for advertising services.

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InstaForex Gertrude · Guru

Germany Business Confidence Drops in February

Sentiment among German businesses dropped in February, according to a closely watched survey that comes on the heels of other polls indicating enthusiasm is easing after hitting multi-year peaks.

The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of some 7,000 companies, declined to a 5-month low of 115.4 from 117.6 in January. The drop in the German headline figure was mainly caused by managers scaling back their business expectations for the next six months, with the respective sub-index dropping to a 10-month low.

A sector breakdown of the Ifo figures revealed that the main impediment came from manufacturing, where the mood among managers had reached a record peak in January. Business sentiment also deteriorated in wholesaling, construction and retailing.

The Ifo data come a day after a survey of German purchasing managers also pointed to a decline in output growth expectations.

Ifo chief Clemens Fuest said firms were less satisfied with their current business situation, but the indicator remains at its second-highest level since 1991.

This upbeat growth outlook was also mirrored in the finance ministry's monthly report that was recently released which said recent data was pointing to a continuation of the economic upswing at the beginning of the year.

Germany is coming off of a year of strong economic expansion. Economists broadly expect the country to continue performing well in 2018, but some have questioned whether the rapid pace can hold.

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InstaForex Gertrude · Guru

BOJ has no Plan Conduct Another Policy Review: Kuroda

Bank of Japan Governor Haruhiko Kuroda said that conducting another comprehensive assessment of the central bank's monetary policy is currently not on the table.

Speaking to the parliament, the head of the Japanese central bank said that things are progressing smoothly, so there are no plans at this stage to hold another comprehensive review, citing the steady recovery in the economy.

The comments were made by Haruhiko when asked by a legislator whether BOJ would conduct an assessment of why its policy had failed to drive up inflation to its 2 percent target.

He reaffirmed the BOJ's resolve to retain its massive monetary stimulus with inflation far from its target.

The central bank overhauled its policy framework to one targeting interest rates from the rate of monetary printing in 2016, after three years of massive asset purchasing failed to accelerate prices pressures.

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InstaForex Gertrude · Guru

UK Services Sector Logs Strong Growth: CBI

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 sector, volumes grew at the fastest pace in a year. Consumer services growth is expected to ease next quarter, but nonetheless remain firm. Rain Newton-Smith, CBI chief economist, said "It's great to see the services sector start the year off on a firm footing."

"Despite feeling the pinch from high inflation, business volumes have bloomed, profits have grown for the first time in over two years and hiring is on the up."

Prices continued to rise in consumer services but were flat in business and professional services. Next quarter, price growth is expected to accelerate in both sub-sectors, survey showed.

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InstaForex Gertrude · Guru

Bank Of Korea Keeps Benchmark Interest Rate Unchanged At 1.50%

The Bank of Korea's monetary policy board on Tuesday voted to hold the nation's benchmark interest rate steady at 1.50 percent, in line with expectations.

The decision was the first since the bank hiked rates by 25 basis points in November, marking the first change in the benchmark in 14 months. It also marked the bank's first rate hike since 2011.

The rate had been static since June of last year, when the bank trimmed the rate from 1.50 percent.

Persistently low inflation and touches of softness in the economy allowed the central bank to leave the monetary stimulus in place.

"The board considers that the acceleration in global economic growth has continued. Volatility in the global financial markets has increased substantially, with government bond yields rising and stock prices falling in line mainly with strengthening expectations of monetary policy normalizations in major countries," the bank said.

Consumer prices were up 0.9 percent on year in January - well shy of forecasts for 1.5 percent, which would have been unchanged from the December reading. On a monthly basis, inflation was up 0.5 percent, accelerating from 0.3 percent in the previous month.

Core CPI, which excludes food prices, gained 0.2 percent on month and 1.1 on year after rising 0.2 percent on month and 1.5 percent on year a month earlier.

Producer prices gained 1.2 percent on year in January, slowing from 2.2 percent in December. On month, producer prices gained 0.4 percent after remaining flat in December.

"Looking ahead it is forecast that consumer price inflation, after remaining in the low- to mid-1% range for some time, will pick up and gradually approach the target level from the second half of this year. Core inflation will also gradually rise," the bank said.

South Korea's gross domestic product contracted a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2017. That missed forecasts for an increase of 0.5 percent following the 1.5 percent jump in the three months prior.

On a yearly basis, GDP gained 3.0 percent - again missing expectations for 3.2 percent and down from 3.8 percent in the previous three months.

For all of 2017, South Korea's GDP was up 3.1 percent.

"The board expects domestic economic growth to be generally consistent with the path projected in January. It anticipates that investment will slow, but that the trend of steady increase in consumption will continue," the bank said.

South Korea's unemployment rate eased to 3.6 percent in January from 3.7 percent in December, which was revised up from 3.6 percent.

South Korea posted a merchandise trade surplus of $3.7 billion in January, marking the 72nd straight months in the black.

Exports jumped 22.2 percent on year to $49.21 billion in January - climbing in 15 straight months and up from $40.25 billion a year earlier.

Imports spiked an annual 20.9 percent to $45.48 billion.

"Looking ahead, the board will conduct monetary policy so as to ensure that the recovery of economic growth continues and consumer price inflation can be stabilized at the target level over a medium-term horizon, while paying attention to financial stability," the bank said.

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InstaForex Gertrude · Guru

Qualcomm to Consider Broadcom Takeover Bid on Higher Price Tag

Qualcomm had a change of heart regarding an acquisition offer by its rival Broadcom, stating it is open to considering the bid if it is raised to $160 billion including $25 billion in assumed debt, according to sources cited by Financial Times.

The change in the company's stance marks a big change for Qualcomm executives, who have been opposing the deal on antitrust grounds. Sources close to Qualcomm said that Broadcom has recently made sufficient progress in tackling the competition issues in order to make way for talks to reach a phase where the two parties can reach an agreed price.

Qualcomm is seeking that Broadcom sweetens its offer by at least 15 percent to above $90 per share, up from its present $79 per share offer, to achieve what would be the biggest tech deal ever brokered, according to people knowledgeable of the proceedings. The total $160 billion price tag would include Broadcom taking on $25 billion in Qualcomm debt.

Several sources close to Qualcomm's senior management said the firm is now open to sealing the deal, but the takeover depends on Hock Tan, Broadcom's CEO, who can decide whether to change course and increase his offer price.

Qualcomm has sent a letter to Tan, expressing the team's interest in pursuing a non-disclosure deal that would enable the two parties to begin due diligence. Qualcomm chairman Paul Jacobs also called for the two chipmakers to set a meeting to negotiate a price as soon as possible. The proposals were dismissed by Broadcom, but said that it was ready to discuss terms that were 'realistic' for both companies.

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InstaForex Gertrude · Guru

Japan Industrial Output Falls 6.6% In January

Industrial production in Japan contracted a seasonally adjusted 6.6 percent on month in January, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading.

That missed forecasts for a decline of 4.0 percent following the 2.9 percent gain in December.

On a yearly basis, industrial production added 2.7 percent - again missing forecasts for 5.3 percent and down from 4.4 percent in the previous month.

Upon the release of the data, the METI maintained its assessment of industrial production saying that it is picking up slowly.

Industries that weakened in January included transport equipment, business-oriented machinery and electronic parts and devices.

Shipments were down 5.6 percent on month and up 4201percent on year.

Industries that were down included transport equipment, business oriented machinery and electronic parts - while communications electronics equipment was up.

Inventories shed 0.6 percent on month and climbed 1.4 percent on year. Industries in contraction included business oriented machinery, transport equipment and iron and steel.

Industries that were up included ceramics, non-ferrous metals and chemicals.

According to the survey of production forecast, industrial output is expected rise 9.0 percent in February and fall 2.7 percent in March.

Industries that are expected to contribute to the increase in February include business oriented machinery, transport equipment and electronic parts.

Industries expected to contribute to the decline in March include electronic devices, electrical machinery and transport equipment.

Also on Wednesday, the METI said that retail sales in Japan were down a seasonally adjusted 1.8 percent on month in January.

That missed forecasts for a decline of 0.6 percent following the 0.9 percent gain in December.

On a yearly basis, retail sales advanced 1.6 percent - again missing expectations for a gain of 2.4 percent and slowing from 3.6 percent in the previous month.

Sales from large retailers advanced an annual 0.5 percent - exceeding forecasts for 0.4 percent and slowing from 1.1 percent a month earlier.

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InstaForex Gertrude · Guru

Feds Powell Sees Strong Economy, Strikes Hawkish Tone for Policy

In his first public appearance as the head of the U.S. central bank, Federal Reserve Chairman Jerome Powell pledged to prevent the economy from overheating while staying on course of a path of gradually hiking interest rates.

In his testimony before the U.S. House of Representatives' Financial Services Committee, Powell gave a nod to the economy's recent show of strength, a comment that investors perceived as hawkish and increased bets on four rate increases in 2018.

The central bank's last wave of economic projections in December indicated three rate hikes this year.

But Powell's overall tone was that of continuity, as he told legislators that the Fed would balance the need to prevent excessive inflation with the benefits of allowing the economy to take advantage of the benefits of the tax cuts and solid global growth.

He said that the Fed was currently assessing how low employment could fall before inflation began to bite. The U.S. jobless rate is at a 17-year low of 4.1 percent.

Powell added that some of the challenges the economy faced in prior years have become tailwinds, noting the recent change in fiscal policy and a global economic recovery. But he also noted that inflation continues to be below the 2 percent target. In the FOMC's perspective, he said that further gradual rate hikes in the federal funds rate will best help them reach both objectives.

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InstaForex Gertrude · Guru

COLOMBIA: Bogot? Asks Caracas To Open Humanitarian Channel

The President of Colombia Juan Manuel Santos asked the Venezuelan government to allow at least one humanitarian channel to alleviate the situation of the country's population.

According to him, Venezuela's trouble is "an issue that greatly concerns us." He added that both Colombia and Peru are receiving significant inflows of Venezuelan migrants.

Santos said that both countries are concerned "not only with the social situation that the Venezuelan people are experiencing, and the crisis that the country is experiencing and the repercussions on the population," but also with what he called as "the destruction of democracy, disrespect, and violation of all the fundamental rights of Venezuelan citizens and the overflow of democratic institutions."

Santos also stressed that Colombia and Peru would continue to insist "until we see Venezuela with a functioning democracy again."

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InstaForex Gertrude · Guru

Eurozone Inflation Drops in February, Highlights ECB Caution

Eurozone inflation fell to a 14-month low in February, which highlights the European Central Bank's caution in removing stimulus despite growth surpassing expectations and the bloc's economy appearing to be on its best shape in a decade.

Official figures from the EU's statistics agency Eurostat showed the headline year on year inflation rate dropped from 1.3 percent to 1.2 percent in February, its weakest level since December 2016.

A closely watched measure of underlying inflation which excludes volatile energy and unprocessed food prices remained steady at 1.2 percent.

Inflation in services and non-energy industrial goods actually rose over the period, and Pantheon Macroeconomics' Claus Vistesen suggested only unfavourable rounding kept the core rate from nudging higher to 1.1 percent.

Energy prices in particular have been driving a decline in headline inflation rate for several months, while February's figure was also affected by a sharp pull-back in food price inflation

Hoping to raise inflation back to target after years of misses, the ECB has purchased more than 2 trillion euros ($2.45 trillion) worth of bonds in the past three years to boost investment and consumption.

Policymakers have warned that a stronger euro could threaten the ECB's medium-term goal of keeping inflation below, but close to, 2 percent, but despite the currency's impressive recent gains against the dollar, it has remained fairly stable on a trade-weighted basis over the last six months.

The data had little immediate impact on the euro, which was down around 0.15 percent against the dollar at publication time.

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InstaForex Gertrude · Guru

Treasury Yields Slide as Trump Slaps Tariffs on Steel, Aluminum Imports

Prices of U.S. government bonds edged up, driving down yields, as investors hurried to secure safe-haven government paper after the Trump administration announced its decision to impose global tariffs on steel and aluminum imports that triggered a stock-market selloff.

In his second testimony to the Congress, Federal Reserve Jerome Powell said he saw no indications of solid wage pressure, language that some market participants aw as an effort to backtraw his hawkish comments earlier in the week. The 10-year Treasury note yield declined 6.7 basis points to 2.802 percent, denoting the biggest one-day decline since September 5, according to WSJ Market Data Group.

The two-year note yield, the most affected by the monetary policy outlook, edged down 5.6 basis points to 2.206 percent, marking the biggest one-day decline in three weeks. The 30-year bond yield fell 4.6 basis points to 3.084 percent.

The last two days of trading has helped to counter some of the selloff in February when a revival of inflation worries weakened the appetite for bonds.

Treasury yields climbed after President Donald Trump announced levies on steel and aluminum imports, causing stocks to slide. Jittery investors flocked to government paper to secure safe-haven assets to protect themselves against market volatility.

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IFX Yvonne · Veteran Member

Gold Prices Rise Amid Concerns Over Trade War, Italy Elections

Gold prices increased on Monday as the dollar remained subdued on concerns over a potential global trade war, as well as amid uncertainty surrounding the outcome of elections in Italy, providing support to the precious metal.

Spot gold gained 0.3 percent at $1,326.41 per ounce. Earlier in the session, it notched $1,327.03, their highest since Feb. 27.

U.S. gold futures rose 0.3 percent to $1,327.70 per ounce.

The dollar index, which measures the U.S. currency against a basket of major peers, was mostly unchanged at 89.971, after falling against most currencies on Friday.

The greenback fell from its six-week high that it hit on March 1, after U.S. President Donald Trump announced plans to levy hefty tariffs on aluminium and steel imports fueling fears of retaliation from its trade partners triggering a trade war.

Italian voters delivered a hung parliament on Sunday and if early projections are confirmed, none of Italy's three main groups will be able to rule alone and there is little prospect of a return to mainstream, moderate government, giving the European Union a new predicament to deal with.

Spot gold could increase to $1,332 per ounce, as it has pierced above a resistance at $1,325, according to Reuters technical analyst Wang Tao.

In other precious metals, silver climbed 0.6 percent to $16.58 per ounce. Platinum rose 0.6 percent to $965.49 per ounce, while palladium added 0.3 percent at $994.50.

-- Edited by IFX Yvonne on Monday 5th of March 2018 07:54:23 AM

InstaForex Gertrude · Guru

Australia Keeps Rates On Hold

Australia's central bank decided to leave its key interest rate unchanged at a record low, as widely expected, on Tuesday.

The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at 1.50 percent.

The bank noted that the low level of interest rates is continuing to support the Australian economy.

The Bank's central forecast is for the Australian economy to grow faster in 2018 than it did in 2017.

The central forecast is for CPI inflation to be a bit above 2 percent in 2018.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

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InstaForex Gertrude · Guru

Volcker Rule Reviewed for Material Changes: Feds Quarles

The top regulator for the U.S. Federal Reserve on Monday said that the country's regulators are actively assessing the possibility of significantly rewriting the Volcker Rule.

Speaking at a gathering of bankers in Washington, Fed Vice Chair for Supervision Randal Quarles said that regulators want to make material changes in order to streamline and simplify a number of aspects of the restrictions on certain bank trading, which were implemented in the wake of the 2007-2009 financial crisis.

The comments are the most recent and most clear recommendation yet of regulators to overhaul one of the central post-financial crisis rules, which bans lenders from making profit-seeking trades on their own account. However, its present form, established in 2013, has been criticized by bank executives as complex, ambiguous and unworkable, points to which Quarles agrees.

In his prepared remarks, Quarles expressed his belief that the regulation implementing the Volcker rule is not 'working well'. He said that all his regulatory colleagues have expressed their support for the proposition that the regulation is overly complex and would benefit from streamlining.

According to Quarles, regulators are actively working to simplify key terms that define the rule's boundaries, including proprietary trading and covered fund.

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InstaForex Gertrude · Guru

Australia GDP Expands 0.4% In Q4

Australia's gross domestic product advanced a seasonally adjusted 0.4 percent on quarter in the fourth quarter of 2017, the Australian Bureau of Statistics said on Wednesday.

That was shy of expectations for 0.5 percent and down from 0.6 percent in the three months prior. On a yearly basis, GDP gained 2.4 percent - again missing forecasts for 2.5 percent and down from 2.8 percent in Q3.

"Growth this quarter was driven by the household sector, with continued strength in household income matched by growth in household consumption," ABS Chief Economist Bruce Hockman said.

Household final consumption expenditure increased 1.0 percent for the quarter.

Exports of goods and services detracted 0.4 percentage points from GDP growth.

Final consumption expenditure picked up 1.1 percent on quarter and 3.3 percent on year, while gross fixed capital formation shed 1.2 percent on quarter and climbed 2.5 percent on year.

The terms of trade added 0.1 percent on quarter and fell 1.0 percent on year, while real disposable income was flat on quarter and gained 1.5 percent on year.

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InstaForex Gertrude · Guru

Treasury Yields Slide amid Tariff Uncertainty, CVS Bond Sale

U.S. government bonds slightly retreated on Tuesday, paring early gains, after traders position amid a massive corporate bond offering by CVS Health and as uncertainty regarding global tariffs on aluminum and steel imports weighed on markets.

The 10-year Treasury note yield was mostly unchanged at 2.877 percent. Yield on the two-year note yield was mostly flat at 2.246 percent. The long bond or the 30-year bond rate edged down by 1.6 basis points to 3.135 percent.

According to traders, the bond market steadied as CVS Health Corp. acquired around $50 billion dollar worth of debt on Tuesday. Firms looking to issue bonds depend on dealers to unload the massive stockpiles and the said dealers will most likely hedge a sudden jump in interest rates by letting go of their Treasury holdings.

U.S. government paper experienced brief selling earlier in the session after House Majority Leader Paul Ryan, along with other congressional Republicans, appear to step up pressure on President Donald Trump to ease up on his protectionist stance. On the other hand, Treasury Secretary Steven Mnuchin stated Mexico and Canada will be excluded from the tariffs if NAFTA is successfully renegotiated. The lack of certainty on the trade front has weakened the demand for stocks, while increasing the demand for bonds.

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InstaForex Gertrude · Guru

Australia January Trade Surplus A$1.055

Australia posted a merchandise trade surplus of A$1.055 billion in January, the Australian Bureau of Statistics said on Thursday.

That blew away forecasts for a surplus of A$200 million following the upwardly revised A$1.146 billion deficit in December (originally A$1.358 billion).

Exports gained A$1.394 billion or 4.0 percent on month to $33.924 billion.

Non-rural goods added A$869 million (4 percent) and non-monetary gold gained A$770 million (54 percent).

Rural goods fell A$312 million (8 percent) and net exports of goods under merchanting tumbled A$9 million (17 percent). Services credits added A$77 million (1 percent).

Imports sank A$807 million or 2.0 percent to AA$32.869 billion.

Consumption goods lost A$586 million (7 percent), non-monetary gold dropped A$95 million (19 percent) and capital goods fell A$90 million (1 percent).

Intermediate and other merchandise goods lost A$68 million (1 percent), while services debits picked up A$31 million

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