Daily Company News by ForexMart

[Luis ForexMart]

Asian Markets Weakened as it Traded Sideways
The stock markets of Asia were unsteady on Tuesday since investors hovered in the sideline prior the publication of the raft of economic statistics scheduled this week. While, the Taipei market coupled with Shanghai, Hong Kong are not in operation due to a holiday.
Moreover, the Nikkei 225 of Tokyo declined by 0.5 percent to 19,576.19, seeing the Kospi of South Korea to plunged to 0.6 percent to 2,338.21, S&P/ASX 200 of Australia lower down by 0.1 percent to 5,701.60. Likewise, Singaporean market had a dip along with the Philippines and New Zealand but the Indonesian benchmark surge.
Jingyi Pan, a market strategist at IG based in Singapore, said that the Asian house market is projected to maintain its thin volumes which start in the countries of China, Hong Kong, and Taiwan which are all closed in consideration of the market holiday.
The data were to be issued this week would likely offer some hints for the investors about the current state of the international economy. Investors anticipate for the consumer confidence index along with the eurozone business data later this day.
On the energy sector, the benchmark for US crude dropped 4 cents up to $49.76 a barrel in electronic trading on the New York Mercantile Exchange. The contract had increased by 90 cents up until $49.80 per barrel yesterday. The Brent crude further decreased by 20 cents till $52.44/barrel in London.

 

[Luis ForexMart]

May Appoints Political Opponent as Junior Minister
UK Prime Minister Theresa May has recently appointed a leading anti-EU Tory campaigner as a junior Brexit minister following unrest within the PM’s team of officials assigned to work on the Brexit negotiations a mere week before the actual start of the said negotiations. The newly-appointed official was identified as Steve Baker, who used to be UK’s chairman of Conservatives. Baker has also led a group of Tory lawmakers which aims to hold the UK government against a complete separation from the European Union.

 

[Luis ForexMart]

Credit Losses Bound to Get Higher in the Industry
Credit card losses will most likely increase in volume in the United States and all over the industry especially to JPMorgan Chase & Co. as mentioned by Gordon Smith, the head of the bank’s consumer businesses during the conference held on Tuesday.
U.S. banks are being objective in their policy decision on whether to tighten credit policies and it is not far that most lenders within the financial sector are inclined to impose a stricter credit card lending standards instead of attenuating it.
JPMorgan earnings are seen to have increased in sales volume but declining credit trend that is still similar to other lending institutions. It is forecasted as shown in the Fitch ratings report that this will persist in the next few quarters because of the rising trend in loan growth pushed by lower credit rates. However, Smith said that there is no need to get distressed over this matter as this is already expected after some time of low loss rates in the past and is now approaching the end of the cycle.

 

[Luis ForexMart]

Germany’s Economic Confidence Declined Unexpectedly

Financiers from Germany shows confidence towards the recovery of the Euro region, however, the UK economy is not lucky enough to gain a stronger stance. Since the economic condition of the Great Britain fell off this year, along with its prospects, based on the data from the ZEW think tank, as the European economic research institute conducted a poll for almost 200 investors.

The margin came higher for the UK compared with other economies mentioned in the survey, because German capitalists are disappointed with the latest economic status. It appeared that more than 63 percent of the respondents predicted that the situation will get even worse during the second half of 2017 which is the highest ratio versus other nations involved in the poll.

According to headline ZEQ indicator, the projections for the German economy had declined comparatively reaching 18.6. While the presumptions for the euro zone was raise to 37.7 versus other confidence indices like PMI and Ifo. The reading of the ZEW headline was keep restrained below the average level which started in 1991.

 

[Luis ForexMart]

Fed Implements Rate Hike, Maintains Outlook for Next Hike
The US Federal Reserve has pushed through with its planned interest rate hike for this month while outlining its plans to continue with stricter monetary policies in spite of the country’s weak inflation rates. FOMC officials approved the central bank’s third rate hike within a six-month period and hinted at possibly another rate hike just before the end of 2017. Fed Chair Janet Yellen stated in a press conference following the announcement that the bank’s plans of unwinding its policies might be implemented sooner than later, especially if the country’s economic status meets the expectations of the Fed. Moreover, the central bank is also looking into a three-quarter point rate increase for 2018 just like its previous projection last March.

 

[Luis ForexMart]

NZ Below Expectation Economic Growth
The New Zealand economy climbed by 0.5 percent in the first quarter of the year but still lower than market expectations as the construction sector weakened. The forecast figure of the central bank is 0.9 percent while the analysts predicted it to attain 0.7 percent, which obviously fell short from both predictions.

Despite positive growth for the milk production and a moderate growth of GDP, these were out shadowed by weak data from the construction sector and the mixed results from the service sector. The construction data declined by 2.1 percent for Q1 that negated the 4.3 percent augmentation in agriculture particularly the milk production.

An economic analyst described this phenomenon to be transient and the economy will advance at estimated of 3.0 to 3.5 percent this year. Also, other sectors are performing well but there is no need for the Reserve Bank of New Zealand (RBNZ) to adjust its cash rate from a record low of 1.75 percent.

 

[Luis ForexMart]

Job Creation in Australia Reached 42,000, Unemployment Rate Slowdown by 5.5% in May
Australia created additional jobs with a total of 42,000 which exceeded the expectations of 10,000 as indicated in the roughly calculated poll led by Reuters, disclosed by the Australian Bureau of Statistics on Thursday. However, the number of unemployed for this month accounts to 5.5 percent which came in lesser than predicted 5.7 percent.
The Aussie dollar further gained strength after releasing the current employment data of the Australian economy at exactly 9:30 HK/SIN while the exchange rate against its American counterpart is greater by 0.5 percent.
The employment figures appeared to be volatile but the rate in the past few months showed some development within the labor sector, said by Steven Milch, the chief economist of Suncorp. Mr. Milch also mentioned that the number remained stable for the third consecutive month and much stronger than their anticipated figures.
In case that the trend will continue, it will also increase the wages which could reinforce the reflection of the RBA towards the economy as a “half empty glass”. This shows that the Reserve Bank of Australia is not probable to revise its policy anytime.
The central bank announced that earlier this June the labour market indicators will remain mixed, keeping its benchmark cash rate on hold at a record low of 1.5 percent. The financial institution also noted that the slackening of real income will curtail the growth in household spending.

 

[Luis ForexMart]

US Health Bill Cuts Business Taxes, Lessens Coverage
The US Senate’s health-care bill has cut billions of dollars worth of taxes from large businesses and high-net worth households in addition to repealing taxes for capital gains. These tax-related provisions in the said bill are highly similar to the House version which was passed last May, with the bill implementing tax repeals and lessening health coverage instead of the other way around. Republican Senator Pat Toomey stressed the importance of cutting down these tax as soon as possible, as these taxes are allegedly doing damage to the country’s economy. These tax cuts are exclusively applicable for households with more than $200,000 of income per annum, as well as married couples making more than $250,000 per annum.

 

[Luis ForexMart]

Theresa May Offered “Fair and Serious” Rights on EU Citizens
Theresa May, British Prime Minister of Britain, said to the leaders of European Union that EU citizens who came legally prior Brexit happenings are authorized to stay in Britain giving them a new ‘settled status provided that they have spent five years living in the UK.
PM May had spoke concurrently as the dinners end during the EU leaders' summit held in Brussels, stating that the United Kingdom agreed to deal with the “cutoff point” between March 29 of the current year, the date when she formally invoke Article 50, until the preferred period of the European Commission until March 2019.
This is the opening offer of May for the future citizen rights. Both nations, UK and EU wants to iron out the issue during earlier negotiations
European citizens who are part of this special status can acquire the same rights when it comes to NHS care, pensions and work along with other public services that British people have.
May mentioned in an interview with The Guardian that "The UK's position represents a fair and serious offer, and one aimed at giving as much certainty as possible to citizens who have settled in the UK, building careers and lives and contributing so much to our society,"
According to the report, the offer is dependent on the reciprocal pledge regarding the privilege of 1.5 million UK citizens who are presently residing somewhere in Europe had failed to reach its target with the EU’s demand in maintaining the continuity of the entire EU rights. But, the British country did not accept the demand of EU to grant the European Court of Justice to take the role as the guarantor.

 

[Luis ForexMart]

Sluggish Growth of Eurozone’s Business Sector in Q2
Business growth in the eurozone did not meet expectations as it approaches the end of the first half this year after the unexpected sluggish growth of the service enterprises, according to the survey on Friday. Nevertheless, the inflation and the overall remains considerably strong which will most likely be sustained by policymakers of the central bank of Europe to balance out and return to its dovish stance.
The PMI data showed a 0.7 percent GDP growth for the second quarter that has exceeded the 0.5 percent forecast of Reuters earlier this June. In the previous quarter, it grew a corrected figure of 0.6 percent growth.
However, companies focused on the service industry has weakened. The services PMI dropped to 54.7 from 56.3, significantly lower than the predictions of economists surveyed. On the other hand, the manufacturing sector PMI rose to 57.3 from 57.0 reaching more than six-year high.