Thursday, 21 July 2016

U.S. stock index futures fall as BoJ stimulus hopes fade

Category: Stock Market

U.S. stock index futures fell Thursday as BoJ stimulus hopes faded.The Dow futures was off 0.08% at 06:30 ET, while the S&P 500 futures fell 0.09%.The tech-heavy Nasdaq 100 futures shed 0.03%The dollar fell as BoJ’s Kuroda Thursday ruled out the need for helicopter money.A slew of U.S. firms to report Q2 earnings later Thursday.U.S. weekly jobless claims and existing home sales due out.

PayPal Q2 EPS estimated at $0.36 on revenues of $2.6 bn

Category: Stock Market

PayPal Holdings Inc (NASDAQ:PYPL) Q2 EPS estimated at $0.36 on revenues of $2.6 bn.The U.S. online payments firm to report after the market closes Thursday.PayPal was spun off from eBay in July 2015; no comparable year-earlier figures.EPS in Q1 came in at $0.37 on revenues of $2.54 billion.PayPal active customer base stood at 184 million at the end of the first quarter.PayPal rumoured to be takeover target; Visa touted as suitor.

Wednesday, 13 July 2016

Australian employment change 7.9K vs. 10.0K forecast

Category: Economic Indicators

Australian employment change rose less-than-expected last month, official data showed on Thursday.In a report, Australian Bureau of Statistics said that Australian employment change rose to a seasonally adjusted 7.9K, from 17.9K in the preceding month.Analysts had expected Australian employment change to rise 10.0K l

Brent, NYMEX rebound in Asia as investors buy following overnight dip

Category: Commodities

Crude oil rebounded in Asia on Thursday as investors bought on a dip overnight on data that showed the summer driving in the season in the U.S. is not making a major impact on demand.On the New York Mercantile Exchange, WTI crude for August delivery rose 1.27% to $45.32 a barrel. On the Intercontinental Exchange (ICE), Brent crude for September delivery gained 1.10% to $46.77 a barrel.Overnight, crude futures fell sharply on Wednesday, retreating back near two-month lows, as investors shrugged off a modest draw in U.S. oil stockpiles placing a greater focus on the sharpest build in distillate fuel inventories in six months.On Wednesday morning, the U.S. Energy Information Administration (EIA) said in its Weekly Petroleum Status Report that commercial crude inventories decreased by 2.5 million barrels last week for the week ending on July 8. At 521.8 million barrels, U.S. crude oil inventories are still at historically high levels for this time of year. The draw fell in line with analysts' estimates for a decline of 3.0 million barrels, while defying expectations from the American Petroleum Institute of gains of 2.2 million barrels.Notably, gasoline inventories increased by 1.2 million barrels for the week, while distillate fuel stockpiles soared by 4.1 million barrels. The gains were concentrated in the Petroleum Administration for Defense Districts 1 (PADD 1) region, which covers a sizeable area of the East Coast. In PADD 1 alone, distillate fuel inventories rose by 1.172 million last week, representing nearly 30% of the overall gains.While consumers continue to spend at the pump at a steady rate, they haven't traveled enough over the key summer driving season to push gasoline inventories dramatically lower or offset the excessive supply gains.With gasoline stockpiles remaining far above their five-year average, refiners have been forced to halt production leading to seasonally-low levels in the so-called "crack spread". On Wednesday, the RBOB crack spread or the premium of a barrel of gas over a barrel of crude hovered around $12, hitting a five-year low for mid-July. By comparison, the spread stood at $18 two months ago and $28 in the middle of last summer.Without a considerable spike in gasoline demand in the coming weeks, refiners could be forced to remain on the sidelines, further squeezing their margins.

Tuesday, 12 July 2016

No credit crunch in wake of Brexit vote - BoE’s Carney


Bank of England Governor Mark Carney said there will be no “credit crunch”, in the U.K. following a vote to exit the European Union, because banks will have funds available to lend.The comments came during testimony to Parliament's Treasury Committee on the financial stability report published by the BoE last week.Carney said that credit supply will not constrain the economy, adding that demand, not credit availability, is more likely to wane.Carney also refuted allegations that the central bank attempted to scare voters about the economic risks of a Brexit vote in the run-up to the referendum, describing the allegations as “extraordinary in all senses of the word”.The BoE said before the referendum that a vote to leave the EU could cause a material slowdown in the economy.Earlier Tuesday, the minutes of the BoE's meeting held in the wake of the Brexit vote on 28 July and 1 July showed that a decision to cut banks' capital requirements was unanimous.The BoE lowered a capital requirement for banks, reversing a decision made in March as part of an effort to shield Britain's economy from the fallout from the Brexit vote.Carney said that by relaxing the rules for banks he wanted to take concerns about credit supply off the table.The BoE has also made more than £250 billion available for banks to avoid a liquidity crunch in financial markets and said it expects to pump more stimulus into the economy over the summer.The BoE is to hold its next monthly Monetary Policy Committee meeting on Thursday amid some expectations for a rate cut, but most analysts are expecting a first rate cut only in August.The BoE could potentially cut interest rates to fresh record lows and step up quantitative easing measures to cushion the economy from the impact of the Brexit vote.

India stocks higher at close of trade; Nifty 50 up 0.63%

Category: Stock Market

India stocks were higher after the close on Tuesday, as gains in the Metals, Real Estate and Banking sectors led shares higher.At the close in NSE, the Nifty 50 rose 0.63% to hit a new 6-months high, while the BSE Sensex 30 index climbed 0.66%.The best performers of the session on the Nifty 50 were Hindalco Industries Ltd. (NS:HALC), which rose 4.80% or 6.20 points to trade at 135.25 at the close. Meanwhile, ICICI Bank Ltd . (NS:ICBK) added 4.74% or 11.85 points to end at 261.70 and TATA STEEL LIMITED (NS:TISC) was up 4.68% or 15.30 points to 342.30 in late trade.The worst performers of the session were Tata Power Co. Ltd (NS:TTPW), which fell 1.69% or 1.25 points to trade at 72.70 at the close. Cipla Ltd. (NS:CIPL) declined 1.21% or 6.30 points to end at 515.70 and Coal India Limited (NS:COAL) was down 1.20% or 3.85 points to 317.05.The top performers on the BSE Sensex 30 were Vedanta Ltd (BO:VDAN) which rose 7.34% to 159.50, Hindalco Industries Ltd. (BO:HALC) which was up 4.84% to settle at 135.30 and ICICI Bank Ltd. (BO:ICBK) which gained 4.68% to close at 261.55.The worst performers were Tata Power Co. Ltd (BO:TTPW) which was down 1.49% to 72.75 in late trade, Coal India Limited (BO:COAL) which lost 1.14% to settle at 316.85 and Cipla Ltd. (BO:CIPL) which was down 0.99% to 516.20 at the close.Falling stocks outnumbered advancing ones on the India National Stock Exchange by 842 to 632 and 53 ended unchanged; on the Bombay Stock Exchange, 942 fell and 683 advanced, while 51 ended unchanged.Shares in Hindalco Industries Ltd. (NS:HALC) rose to 52-week highs; gaining 4.80% or 6.20 to 135.25. Shares in Vedanta Ltd (BO:VDAN) rose to 52-week highs; up 7.34% or 10.90 to 159.50. Shares in Hindalco Industries Ltd. (BO:HALC) rose to 52-week highs; rising 4.84% or 6.25 to 135.30.The India Vix, which measures the implied volatility of Nifty 50 options, was down 0.44% to 14.7825 a new 6-months low.Gold for August delivery was down 0.33% or 4.45 to $1352.15 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August rose 1.94% or 0.87 to hit $45.63 a barrel, while the September Brent oil contract rose 2.34% or 1.08 to trade at $47.33 a barrel.USD/INR was down 0.00% to 67.156, while EUR/INR rose 0.43% to 74.5520.The US Dollar Index was down 0.35% at 96.24.

U.S. futures point to new record highs ahead of Fed speakers

Category: Stock Market

Wall Street futures pointed to a third consecutive session of gains that could take the S&P 500 to new record highs, while the Nasdaq Composite could mark a new high for the year, as investors looked ahead to a string of Federal Reserve (Fed) speakers and reacted positively to an optimistic start to second quarter (Q2) earnings season, while prospects for more monetary stimulus from the Bank of Japan (BoJ) combined with easing political tensions in Britain boosted appetite for riskier assets..The blue-chip Dow futures gained 76 points, or 0.43%, by 10:59AM GMT, or 6:59AM ET, the S&P 500 futures rose 10 points, or 0.48%, while the tech-heavy Nasdaq 100 futures advanced 23 points, or 0.52%. Alcoa (NYSE:AA) unofficially started the the Q2 earnings season after the close on Monday. Despite a decrease in both profit and revenue, the aluminum maker managed to beat consensus on both figures and shares jumped nearly 4% in Tuesday's pre-market.Later in the week, investors will undoubtedly focus on bank earnings with JP Morgan’s release on Thursday, followed by Citigroup and Wells Fargo on Friday, as well as other financial companies such as BlackRock and PNC Financial Services.On Tuesday, market players looked ahead to a string of comments from Fed officials to gauge the stance on the future path of U.S. monetary policy.Much along the lines of Cleveland Fed president Loretta Mester who avoided commenting on the economy or interest rates in her speech in Sydney, Australia early on Tuesday, further clues were not expected from Fed governor Daniel Tarullo who will give remarks on shadow banking at 13:15GMT, or 9:15AM ET.However, St. Louis Fed president James Bullard is set to speak at 13:35GMT, or 9:35AM ET, on Tuesday to the Gateway Chapter of the National Association for Business Economics, while Minneapolis Fed president Neel Kashkari is expected to give remarks at 21:30GMT, or 5:30PM ET, on the economy and the role of the Federal Reserve System.On the economic calendar, the May job openings and labor turnover survey (JOLTs) will be released at 14:00GMT, or 10:00AM ET. While policymakers already received information from last Friday’s employment report for June, Fed chair Janet Yellen has commented that JOLTs is one of her favorite measures for the health of the U.S. labor market.Elsewhere, risk appetite continued to be boosted by expectations for new stimulus measures. Japan’s Prime Minister Shinzo Abe flagged a fresh fiscal stimulus package on Monday after his ruling coalition won a landslide victory in the Upper House.The coalition’s firmer grip means policymakers can more easily approve a bigger fiscal stimulus package to spur the economy. A stimulus package of at least 10 trillion yen ($97.9 billion) is expected.The yen hit session lows against the dollar on continued speculation for further BoJ intervention after a report that the Japanese government was planning to cut inflation forecasts for this year and provide an estimate of 1.4% for fiscal 2017, well below the central bank’s target of 2.0%.Investor sentiment was also boosted as political uncertainty in the U.K. eased with the imminent appointment of Home Secretary Theresa May as British Prime Minister.In oil markets, crude was higher on Tuesday, bouncing off the prior session's two-month low as investors looked ahead to a monthly report from the Organization of Petroleum Exporting Counties due later in the session to gauge global supply and demand levels.The report could show OPEC production rose by 300,000 barrels a day last month to a nearly eight-year high of 32.7 million barrels a day, due to steadily increasing output from Libya, Nigeria, Saudi Arabia and Iran.U.S. crude futures jumped 2.95% to $46.08 by 11:00AM GMT, or 7:00AM ET, while Brent oil soared 4.20% to $47.73.

Monday, 11 July 2016

Forex - Dollar up more than 1% against yen as Japan stocks rally

Category: Forex

The dollar rose more than 1% against the yen on Monday as Japanese stocks led a rally in Asian markets, boosted by a robust U.S. jobs report and hopes for additional economic stimulus in Japan.USD/JPY hit highs of 101.95 and was last at 101.91, up 1.3% for the day. The pair had fallen to lows of 99.97 in the wake of Friday’s jobs report.EUR/JPY advanced 1.22% to 112.43.Japan’s Nikkei surged 3.98% after Prime Minister Shinzo Abe’s ruling coalition increased its majority in the upper house in parliamentary elections on Sunday.The win for Abe’s coalition fed hopes for a fresh package of stimulus measures to spur economic growth.Risk appetite had already been boosted after data on Friday showing that the U.S. economy added 287,000 jobs in June, well above the 175,000 jobs forecast by economists.The stronger than expected jobs report indicated that the economic recovery is back on track.But the data did little to alter the view that the Federal Reserve will stick to cautious plans for hiking interest rates after May’s payrolls figure was revised down to 11,000, the smallest monthly increase since 2010.The euro edged lower against the dollar, with EUR/USD slipping 0.2% to 1.1027, not far from Friday’s two-week lows of 1.1001.The pound also slid lower, with GBP/USD easing 0.15% to 1.2933, not far from its post-Brexit low of 1.2794 set last Wednesday.Investors were looking ahead to the outcome of the upcoming Bank of England meeting later in the week.The BoE could potentially ease monetary policy to cushion the U.K. economy from the impact of Brexit, which would also pressure sterling lower.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 96.62.

Global stocks: Japan soars on stimulus hopes, Europe rallies

Category: Stock Market

Nikkei 225 up 4% as ruling coalition election win fuels stimulus hopes.Europe extends rally as DAX opens 1.4% higher.Yen slips vs. dollar as U.S. job data shows recovery remains on track.Bond yields near record lows as Brexit concerns point to stimulus measures.Gold, silver, copper futures higher.

Norwegian CPI 0.6% vs. 0.1% forecast

Category: Economic Indicators

Consumer price inflation in Norway rose more-than-expected last month, official data showed on Monday.In a report, Statistics Norway said that Norwegian CPI rose to a seasonally adjusted 0.6%, from 0.3% in the preceding month.Analysts had expected Norwegian CPI to rise 0.1% l

Friday, 8 July 2016

Japan’s Current Account 1.41T vs. 1.52T forecast

Category: Economic Indicators

Japan’s current account balance rose less-than-expected last month, official data showed on Thursday.In a report, Ministry of Finance said that Japan’s Current Account rose to a seasonally adjusted 1.41T, from 1.63T in the preceding month.Analysts had expected Japan’s Current Account to rise 1.52T l

Japan’s Average Cash Earnings -0.2% vs. 0.5% forecast

Category: Economic Indicators

Japan’s average cash earnings fell unexpectedly in the last quarter, official data showed on Friday.In a report, Japanese Ministry of Health, Labour and Welfare said that Japan’s Average Cash Earnings fell to a seasonally adjusted -0.2%, from 0.0% in the preceding quarter whose figure was revised down from 0.3%.Analysts had expected Japan’s Average Cash Earnings to rise to 0.5% in the last quarter

WD-40 shares fall 4% after spray company lowers full-year sales outlook

Category: Stock Market

 Shares in WD-40 Company (NASDAQ:WDFC) fell more than 4% in after-hours trading after the San Diego-based spray company missed analysts' quarterly revenue forecasts and lowered its full-year guidance on Thursday.During the company's third quarter of fiscal year 2016, which ended in late-May, WD-40 reported $12.7 million in net profits or earnings of 0.88 per share, slightly above earnings of $11 million or 0.75 per share over the same quarter a year earlier. At the same time, the company increased quarterly revenues by 4.3% to $96.4 million, amid a spike in maintenance product sales. For the quarter, sales in the division rose by 6%, driven primarily by sharp increases in WD-40's Multi-Use and Specialist products.Nevertheless, further gains from WD-40 were limited by unfavorable currency translation among the company's foreign subsidiaries. On a constant currency basis, the penetrating and water displacing spray company said revenues for the three-month period would have increased to $99.2 million for the quarter and $293 million year-to-date.Analysts expected to see earnings per share of 0.86 on revenues of $99 million for the period."We had a good quarter and are pleased we have seen solid year-over-year sales growth in maintenance products throughout all three of our trading blocs during the third quarter," WD-40 CEO Garry Ridge said in a statement. " Overall, we believe the tribe has positioned us for a strong finish to fiscal year 2016 and we are pleased that we will be able to reward them for their hard work across the globe."Moving forward, WD-40 anticipates to post full-year revenue of $378 to $383 million, down from prior estimates of $385 to $394 million.Shares in WD-40 lost 4.69 or 4.05% to 111.20 in after-hours trading.

Germany’s Trade Balance 22.2B vs. 23.8B forecast

Category: Economic Indicators

Germany’s trade balance fell more-than-expected last month, official data showed on Friday.In a report, Destatis said that Germany’s Trade Balance fell to 22.2B, from 24.1B in the preceding month whose figure was revised up from 24.0B.Analysts had expected Germany’s Trade Balance to fall to 23.8B l

Wednesday, 6 July 2016

Australian retail sales 0.2% vs. 0.3% forecast

Category: Economic Indicators
Retail sales in Australia rose less-than-expected last month, official data showed on Tuesday.In a report, Australian Bureau of Statistics said that Australian retail sales rose to a seasonally adjusted 0.2%, from 0.2% in the preceding month.Analysts had expected Australian retail sales to rise 0.3% l

Japan stocks lower at close of trade; Nikkei 225 down 1.85%

Category: Stock Market
Japan stocks were lower after the close on Wednesday, as losses in the Rubber, Shipbuilding and Financial Services sectors led shares lower.At the close in Tokyo, the Nikkei 225 declined 1.85%.The best performers of the session on the Nikkei 225 were Hokuetsu Kishu Paper Co., Ltd. (T:3865), which rose 3.08% or 22.0 points to trade at 736.0 at the close. Meanwhile, Maruha Nichiro Corp (T:1333) added 2.40% or 65.0 points to end at 2778.0 and Nippon Telegraph&Telephone Corp (T:9432) was up 2.17% or 107.0 points to 5044.0 in late trade.The worst performers of the session were Taiyo Yuden Co., Ltd. (T:6976), which fell 7.94% or 69.0 points to trade at 800.0 at the close. Nippon Kayaku Co., Ltd. (T:4272) declined 6.94% or 70.0 points to end at 939.0 and SUMCO Corp. (T:3436) was down 6.36% or 42.0 points to 618.0.Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 1654 to 318 and 70 ended unchanged.Shares in Taiyo Yuden Co., Ltd. (T:6976) fell to 3-years lows; falling 7.94% or 69.0 to 800.0. Shares in Nippon Kayaku Co., Ltd. (T:4272) fell to 3-years lows; losing 6.94% or 70.0 to 939.0.The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was up 10.28% to 30.57.Crude oil for August delivery was down 0.17% or 0.08 to $46.52 a barrel. Elsewhere in commodities trading, Brent oil for delivery in September fell 0.19% or 0.09 to hit $47.87 a barrel, while the August Gold contract rose 0.75% or 10.25 to trade at $1368.95 a troy ounce.USD/JPY was down 0.71% to 101.03, while EUR/JPY fell 0.85% to 111.73.The US Dollar Index was up 0.08% at 96.35.