Monthly Archives: July 2018

BRAZIL: Machinery Sector Revenues Up 23.0% In June Over May

Net sales of the Brazilian machinery and equipment industry increased 23.0% in June compared to the previous month and 13.1% compared to the same month of the previous year, totaling R$ 7.121 billion, said the Brazilian Association of Machinery and Equipment Industry (Abimaq). In the first half of the year, the sector’s revenues grew by 4.2%, to R$ 35.075 billion.

The trade balance of the sector recorded a deficit of US$ 378.6 million, down 33% on a monthly basis, but up 50.7% over June 2017. In the first six months of the year, the deficit rose 18.9% to US$ 2.351 billion.

Imports totaled US$ 1.25 billion last month, up 15.3% on a monthly basis and 24.6% over the previous year, while exports totaled US$ 871.77 million, an increase of 67.7% month-on-month and 15.8% year-on-year.

The material has been provided by InstaForex Company – www.instaforex.com

BRAZIL: Alckmin, Bolsonaro Lead Voting Intention In Sao Paulo State -survey

Far-right Jair Bolsonaro and conservative Geraldo Alckmin lead a voting intention survey in Sao Paulo state when center-left former President Luiz Inacio Lula da Silva is excluded from the polling.

PSL’s Bolsonaro leads with 21%, while former S?o Paulo state governor Alckmin trails with 20%, according to the survey conducted by Social, Political and Economic Research Institute (Ipespe) at the request of “Infomoney.” The margin of error is 3.2 percentage points above or below.

Meanwhile, white and null voting intention reached 23%.

Marina Silva (Network) appears with 10% voting intention, Ciro Gomes (PDT) has 8% and Fernando Haddad (as Lula’s replacement), 5%.

When Lula is included in the polling, the former President has 20%, tied with Bolsonaro and trailed by Alckmin (19%). Null and white votes were mentioned by 15% of the respondents.

The material has been provided by InstaForex Company – www.instaforex.com

Crude Oil Settles Lower

Crude oil prices slipped on Tuesday amid worries about oversupply in the market after a survey showed a sharp hike in crude production by OPEC.

Despite interruptions in supply from Libya and Venezuela, it is expected that there will be excess supply in the market as Saudi Arabia and Russia may increase production.

Reports that U.S. President Donald Trump has offered to meet Iranian President Hassan Rouhani raised expectations that US may soften its stand on sanctions. However, Iranian officials have reportedly rejected the proposal.

Last week, a report from Baker Hughes said, three rigs were added in the U.S, taking the total rig count in the country to 861.

Crude oil futures for September ended down $1.37 or almost 2%, at $68.76 a barrel on the New York Mercantile Exchange. September futures contract shed about 4.1% in July.

Traders now look ahead to data on U.S. supplies. The American Petroleum Institute is scheduled to release its report on weekly inventories later in the day. On Wednesday, the Energy Information Administration’s data on crude
inventory in U.S. is due.

The material has been provided by InstaForex Company – www.instaforex.com

Treasuries Move Slightly Higher Ahead Of Fed Announcement

Treasuries showed a slight move to the upside during trading on Tuesday, largely offsetting the modest weakness seen in the previous session.

After seeing initial strength, bond prices pulled back off their highs but remained in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.1 basis points to 2.964 percent.

Treasuries have shown a lack of direction over the past few sessions as traders await the Federal Reserve’s monetary policy announcement on Wednesday.

The Fed is scheduled to announce its latest monetary policy decision at 2 pm ET on Wednesday following a two-day meeting of the Federal Open Market Committee.

At its June meeting, the Fed raised interest rates by 25 basis points to a range of 1.75 percent to 2 percent and forecast two additional rate hikes this year.

While the Fed is widely expected to leave rates unchanged on Wednesday, the accompanying statement is likely to be closely examined for any hints about future rate hikes.

On the U.S. economic front, the Commerce Department released a report showing personal income and spending both increased in line with economist estimates in the month of June.

The report said personal income climbed by 0.4 percent in June, matching the increase seen in May as well as expectations.

The Commerce Department said personal spending also rose by 0.4 percent in June after climbing by an upwardly revised 0.5 percent in May.

Economists had expected spending to increase by 0.4 percent compared to the 0.2 percent uptick originally reported for the previous month.

A separate report from the Conference Board showed a modest rebound in consumer confidence in the month of July.

The Conference Board said its consumer confidence index inched up to 127.4 in July from an upwardly revised 127.1 in June. Economists had expected the index to rise to 127.0 from the 126.4 originally reported for the previous month.

Traders are likely to be focused on the Fed announcement on Wednesday, although reports on private sector employment and manufacturing activity may still attract some attention earlier in the day.

The Treasury Department is also due to announce the details of next week’s auctions of three-year and ten-year notes and thirty-year bonds.

The material has been provided by InstaForex Company – www.instaforex.com