Forex News (from InstaForex) - page 148

Oil Sinks on Skepticism Supply Cut Will Be Big Enough to End Glut

Prevailing apprehension that a planned crude output cut by OPEC and Russia would be strong enough to end the two-year oil glut in the market pulled down oil prices on Wednesday.

Benchmark Brent crude oil futures traded down 24 cents or 0.45% at $53.69 per barrel, while U.S. WTI crude futures slipped 19 cents or 0.37% from their last finish at $50.74 per barrel.

Oil prices rallied as high as 19% after OPEC and Russia struck a deal to jointly limit output in 2017 in a move to support the oil market.

However, skepticism have since surfaced about whether the planned production cuts will be strong enough to end oversupply as both parties involved in the agreement reported record production volumes in the previous month.

With virtually almost every crude exporting region producing at record amounts, there is persisting skepticism in the market how both parties will be able to commit to the Vienna production cut targets, analysts said, adding that the higher their production, the higher the starting point of the cut will be.

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China CPI +2.3% On Year In November

Consumer prices in China were up 2.3 percent on year in November, the National Bureau of Statistics said on Friday.

That exceeded expectations for 2.2 percent and was up from 2.1 percent in October.

On a monthly basis, inflation added 0.1 percent after easing 0.1 percent a month earlier.

The bureau also said that producer prices surged an annual 3.3 percent versus forecasts for 2.3 percent following the 1.2 percent gain in the previous month.

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Dollar Climbs as Euro Falls on ECB Decision

The dollar climbed against the yen and euro, as the common currency plunged overnight after the European Central Bank's move to extend the debt-purchasing programme. The ECB announced that it would cut its monthly asset purchases to 60 billion euros as of April.

The euro shortly increased to almost a one-month high, with the decision seen as a form of policy tapering. However, the common currency retraced its advances as the central bank's move offset any increase from the reduction of its debt purchasing amount. The euro stood flat at $1.0616. The dollar strengthened at 114.070 yen. Investors are currently focused on the Federal Reserve. The likelihood of a Fed rate hike next week has nearly been fully priced in the market.

The dollar index was steady at 101.100 and is on track to climb 0.3 percent this week. The Australian dollar was flat at $0.7458.

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Japan Core Machine Orders Jump 4.1% In October

Core machine orders in Japan were up 4.1 percent in October, the Cabinet Office said on Monday - coming in at 878.3 billion yen.

That beat forecasts for a gain of 1.1 percent following the 3.3 percent decline in September.

On a yearly basis, core machine orders tumbled 5.6 percent - shy of expectations for a fall of 4.9 percent following the 4.3 percent gain in the previous month.

The total number of machinery orders, including those volatile ones for ships and from electric power companies, added 1.2 percent on month but tumbled 15.8 percent on year to 984.2 billion yen.

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Iran-Boeing Deal Valued at $16.6 Billion

The agreement between Iran's national carrier and Boeing Co. regarding a purchase of 80 aircrafts that is valued at $16.6 billion, will eventually force both the Congress and President-elect Donald Trump to balance their diplomatic priorities with U.S. job expansion. According to a company statement, the deal will include 50 737 MAX 8s, 15 7777-300ERs and 15 777-9s.

The Islamic Republic News Agency has reported that the aircraft will be delivered over ten years and will start in 2018. The report has also cited Iran Air Chief Executive Officer Farhad Parvaresh. Boeing has remarked that the deal was acquired under the conditions of a U.S. government license that was issued in September and will also support nearly 100,000 jobs in the U.S. aerospace industry. The bill regarding the deal was recently approved by the House in November and currently awaits Senate action.

The value of the deal worth $16.6 billion is based on list prices ahead of large discounts that have been established for major airlines.

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China Industrial Output Jumps 6.2% In November

Industrial production in China was up 6.2 percent on year in November, the National Bureau of Statistics said on Tuesday.

That exceeded expectations for an increase of 6.1 percent, which would have been unchanged from the October reading.

The bureau also said that retail sales jumped an annual 10.8 percent - again topping forecasts for 10.2 percent and up from 10.0 percent in the previous month.

Also, fixed asset investment advanced 8.3 percent on year - in line with expectations and unchanged from the previous month.

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U.S. Stocks Lower as Dow Hits Record Close

Stocks ended mostly lower as oil prices surged and Treasury yields jumped prior to the Federal Reserve meeting. The Dow Jones Industrial Average reached a 15th record finish, while financial firms pulling down major U.S. stock indexes.

The Dow Jones Industrial Average gained 0.2 percent at 19,796.43, the S&P 500 slipped 0.11 percent at 2,256.96 while the Nasdaq Composite fell 0.59 percent at 5,412.54. The blue-chip index climbed for the sixth straight session to reach another record high, as advances in Exxon Mobil and Johnson & Johnson helped counterbalance the lows in American Express and Goldman Sachs Group. The S&P 500's financial sector finished lower in four sessions since Nov. 8. The Nasdaq Biotechnology Index edged down 0.7 percent.

Energy shares rallied alongside oil prices following an announcement from a group of oil producers who agreed to reduce their output with the Organization of Petroleum Exporting Countries. The S&P 500's energy sector gained 0.7 percent. Exxon Mobil was up 2.2 percent to $90.98. FMC Technologies climbed two percent to 36.08 while Helmerich & Payne added 1.7 percent to 83.18.

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BoJ Tankan: Large Manufacturers' Index Steady At +10 In Q4

An index monitoring business sentiment in Japan was unchanged in the fourth quarter of 2016, the Bank of Japan said on Wednesday in its quarterly Tankan business survey.

The large manufacturers' index came in with a score of +10, in line with expectations and up from +6 in the previous quarter.

The outlook came in at +8, shy of expectations for +9 but up from +6 in the three months prior.

The survey is closely watched by the Bank of Japan for formulating policies.

The large non-manufacturers index was at +18, unchanged from Q3 although missing forecasts for +19.The outlook score was +16, also unchanged but shy of forecasts for +18.

Large industry capex for the current fiscal year is now seen higher by 5.5 percent, missing forecasts for 6.1 percent and down from 6.3 percent in the previous quarter.

The small manufacturing index came in at +1, beating expectations for -1 and up from -3 in the third quarter. The outlook was -4, missing forecasts for -2 after showing -5 in the three months prior.

The small non-manufacturing index had a score of 2, in line with forecasts and up from 1 in the previous quarter. The outlook came in at -2, unchanged although shy of forecasts for +1.

The sentiment indexes are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. A positive reading means optimists outnumber pessimists.

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Gold Slips on U.S. Federal Reserve Meeting

Gold inched lower, as the Federal Reserve started its two-day meeting where it is widely anticipated to deliver the second U.S. interest rate raise in a decade and will also give some observation regarding the outlook on 2017. U.S. gold futures were down 0.6 percent at $1,159 an ounce.

Markets have implied nearly a 100 percent likelihood of a quarter-point hike. Spot gold fell 0.6 percent to $1,155.65 per ounce. Investors await further clues as to how the U.S. central bank will handle inflation that might arise from the expansionary policies of President-elect Donald Trump and economic growth expectations. SPDR Gold Trust (GLD) also dropped, which reflects the lacklustre sentiment on the precious metal.

Silver fell 1.3 percent at $16.85 per ounce. Platinum edged up 0.3 percent at $933.80 while palladium climbed 0.9 percent at $728.10.

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Australia Jobless Rate Climbs To 5.7%

The unemployment rate in Australia was a seasonally adjusted 5.7 percent in November, the Australian Bureau of Statistics said on Thursday.

That missed forecasts for 5.6 percent, which would have been unchanged from the October reading.

The Australian economy added 39,100 jobs in November, far surpassing forecasts for a gain of 17,500 following the addition of 9,800 jobs in the previous month.

The participation rate jumped to 64.6 percent, beating expectations for 64.5 percent and up from 64.4 percent a month earlier.

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