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South Korea PPI Inflation Accelerates Further

South Korea’s producer price inflation accelerated for the fourth straight month in July, preliminary data from Bank of Korea showed Tuesday.

Producer prices climbed 2.9 percent year-on-year in July, faster than June’s 2.6 percent rise.

Price index for agricultural, forestry and marine products grew 4.3 percent annually in July and those of manufacturing products gained by 4.2 percent.

Meanwhile, prices for electric power, gas and water supply dropped 2.4 percent.

Month-on-month, producer prices increased 0.4 percent in July, after remaining flat in the preceding month.

The domestic supply price index rose 5.3 percent yearly and by 0.9 percent monthly in July.

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

New Zealand Credit Card Spending Falls In July

New Zealand’s credit card spending decreased in July, after rebounding in the previous month, figures from Reserve Bank of New Zealand showed Tuesday.

Credit card spending dropped 1.1 percent month-on-month in July, in contrast to a 1.9 percent rise in June.

Domestic billing also fell 1.1 percent over the month to NZ$3.3 billion, while overseas billings grew by 1.1 percent.

Year-on-year, credit card spending growth eased to 3.2 percent in July from 5.8 percent in June.

Data also showed that credit card balances rose 0.2 percent in July, following a 0.4 percent increase in the preceding month. Yearly, growth eased to 5.5 percent from 5.8 percent.

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

RBA Minutes On Tap For Tuesday

The Reserve Bank of Australia will on Tuesday release the minutes from its monetary policy meeting on August 7, highlighting a modest day for Asia-Pacific economic activity.

At the meeting, the RBA voted to maintain its benchmark lending rate at the record low of 1.50 percent – where it has been for two years.

New Zealand will release July numbers for credit card spending; in June, spending was up 2.1 percent on month and 5.7 percent on year.

Japan will see July figures for supermarket sales; in June, sales added 0.1 percent on year.

Hong Kong will provide July data for consumer prices, with forecasts suggesting an increase of 2.4 percent – unchanged from the June reading.

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

Crude Oil Futures Settle Higher

Oil prices edged higher on Monday, extending gains to a third successive session, despite lingering concerns about the outlook for economic growth and worries about excess crude supply in the market.

At the same time, traders also appeared to be thinking about the possible impact of U.S.’ sanctions against Iran on global crude supply.

There are possibilities of supply disruptions in Libya as well, amid fresh protests by workers at the Zawiya oil export terminal which could cut oil production from Libya’s Sahara oil field.

Meanwhile, according to reports, South Korea is in talks with the U.S. government to continue importing Iranian condensate as it is hard to find alternative sources due to limited suppliers.

Last Friday, Baker Hughes released a report that showed oil rig count in the U.S. remained unchanged in the week.

Crude oil futures for September delivery ended up $0.52, or 0.8%, at $66.43 a barrel. On Friday, crude oil futures had ended up $0.45, or 0.7%, at $65.91 a barrel.

Meanwhile, Brent crude for October edged up $0.38, or 0.5%, to $72.21 a barrel.

Crude oil prices had eased during the earlier part of the previous week amid concerns about a likely fall in demand and on an unexpected jump in U.S. crude inventories.

Data released by the Energy Information Administration last Wednesday showed U.S. crude oil inventories to have risen by 6.8 million barrels in the week ended August 10, as against expectations for a drop of about 2.4 million barrels.

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Gold Settles Higher Ahead Of US-China Trade Talks, Fed Minutes

Gold prices moved higher on Monday, rebounding strongly, after registering some sharp losses and even tanking to a near 20-month low in the previous week.

Bargain hunting ahead of release of the minutes of the Federal Reserve’s August meeting and trade talks between the U.S. and China lifted gold prices.

Markets across the globe expect that the U.S.-China trade talks this week will help in de-escalation of trade war tensions.

The fed’s August policy meeting minutes will be out on Wednesday. The minutes, besides revealing the central bank’s outlook on inflation and growth, will also provide some clues about future rate hikes.

Gold futures for December ended at $1,194.60 an ounce, up $10.40, or 0.88%, the biggest gain in a single session in nearly a month.

Gold futures ended at $1,184.20 last Friday, gaining $0.20, or 0.017%. Last week, gold futures declined by about 2.9%,

the largest weekly fall in over 15 months. In the past eight months, the yellow metal has shed nearly 11%.

Silver futures for September ended at $14.670 an ounce, gaining $0.039 in the session.

Copper futures for September settled up $0.395, at 2.6685 per pound.

The Fed had left interest rates unchanged in its August meeting, but hinted that at a couple of rate hikes this year.

Last week, Wall Street Journal had reported that Chinese and U.S. negotiators were drawing up a road map for talks to try to end their trade impasse.

Citing officials in both nations, the Journal indicated the plan would culminate in planned meetings between President Donald Trump and Chinese leader Xi Jinping at multilateral summits in November.

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Dollar Losing Ground After Early Gains Erode

The dollar got off to a positive start against its major rivals Monday morning, but has since reversed and is now trading weaker. Traders appear to be exercising caution ahead of some important events this week.

China and the United States will hold lower-level trade talks this week, just before new U.S. tariffs on $16 billion of Chinese goods take effect.

Federal Reserve Chairman Jerome Powell is scheduled to speak Friday at the annual global central bank conference on monetary policy.

In addition, the Fed will release the minutes from its July 31-August 1 policy meeting on Wednesday, with investors looking for clues on whether the central bank will raise borrowing costs in September.

Greece has finally emerged out of its final bailout programme helping it to re-enter the financial markets to raise own funds for the first time in eight years.

“Greece is now in a position where it can enjoy the full extent of euro area membership, abiding by the same rules as every other euro country,” Eurogroup President Mario Centeno said.

However, Greece’s troubles are not yet over as it is emerging from the bailout with Eurozone’s highest debt burden, which was about 180 percent of GDP, as of 2017.

The dollar climbed to an early high of $1.1394 against the Euro Monday, but has since dropped to around $1.1460.

Eurozone construction output increased for the third straight month in June, data from Eurostat showed Monday. Construction output advanced 0.2 percent month-over-month in June, but slower than the 0.3 percent rise in May.

Germany’s producer price inflation held steady in July, in line with expectations, figures from Destatis showed Friday. Producer prices grew 3.0 percent year-on-year in July, the same rate of increase as in June.

The buck reached an early high of $1.2729 against the pound sterling Monday, but has since fallen to around $1.2780.

UK house prices dropped in August as more sellers entered the market during summer holiday season, property website Rightmove reportedly said Monday. Average asking prices decreased 2.3 percent in August from July.

The greenback rose to a high of Y110.684 against the Japanese Yen Monday morning, but has since retreated to around Y110.225.

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Germany’s Growth Likely To Slow In Q3: Bundesbank

Germany’s economy is likely to remain on a sound growth path in the third quarter but the pace of growth could end up being somewhat slower than the average for the first half of the year, Bundesbank said in its monthly report on Monday.

Accordingly, industry is not expected to make any meaningful contribution to aggregate growth.

The central bank assessed the situation in the labor market as remaining very favorable. However, it did not improve as much as in previous quarters.

According to official data, the largest euro area economy expanded at a slightly faster pace of 0.5 percent in the second quarter on domestic demand.

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