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Tesla Shares Sink after Losing Morgan Stanley’s Rating Cut



Morgan Stanley, one of Tesla's biggest and longtime bulls, downgraded the stock as it cited the increased projection of the carmakers' expenses and the competitive risk from well-capitalized rivals.

Morgan Stanley analyst Adam Jonas, has been one of the biggest champion for the Tesla stock, visualizing offerings of a ride-for-hire service that could increase the value of the firm by two-fold. But now, the top auto analyst sees operating losses extending into the next year and project the company will burn through $3.1 billion of cash this 2017, up from the prior estimate of $2.3 billion.

In a note to clients, Jonas stated they expect Tesla's larger and better capitalized rivals to launch strategies that will tackle sustainable transportation and movability.

Jonas slashed Tesla's rating to “equalweight” from “overweight” but retained his $305 stock price target, causing its shares to fall by as much as 3.8 percent to $312.53. It was last trading down 2.6 percent to $316.46. With the downgrade, the electric carmaker's bull camp fell to just 37.5 percent of Wall Street with ratings on the stock.

Currently, Elon Musk's company has has nine “buy” ratings, “10” hold ratings and 5 “sell” ratings. Tags: Industry, Investments, Share, Stocks, bonds

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New Zealand Producer Price Index Continues to rise in Q1



New Zealand producer prices continued to rise in the first quarter of this year. The producer output prices were up 1.4 percent sequentially, while the input prices were up 0.8 percent quarter-on-quarter, stated Statistics New Zealand. The producer output prices were mainly driven by increased prices of dairy products, whereas the increased crude oil prices drove up the input costs at oil refineries. On a year-on-year basis, producer output prices rose 4.1 percent, whereas input prices were up 4.2 percent.

The prices paid by fuel manufacturers rose 43 percent in the year, owing to higher crude oil prices. Meanwhile, prices received by dairy cattle farmers and dairy product manufacturers in March rose 49 percent and 22 percent respectively.

Meanwhile, the consumer price index rose 2.2 percent in the year to the March quarter. This was also driven by fuel prices.

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Wall Street Mixed as Nasdaq Hits 3-Day Winning Streak



U.S. stocks finished mixed as investors brushed off latest news coming from Washington. The S&P 500 and the Dow closed little changed after mixed economic data and retail earnings, as the Nasdaq touched another record close with the help from technology stocks.

The Dow Jones industrial average slipped 0.01 percent to end at 20,979.75, as UnitedHealth led losses while Microsoft was the best performer. The S&P 500 dropped 0.07 percent to finish at 2,400.67, as utilities led nine sectors down and financials and information technology were the only gainers. The Nasdaq jumped 0.33 percent to end at 6,169.87.

The S&P's financial sector closed the day with a 0.2 percent advance.

Utilities were the S&P's largest decliner of the day with a 0.8 percent loss. UnitedHealth and Pfizer weighed on the S&P the most. Shares of Pfizer dropped 1.6 percent to $32.60 after Citigroup downgraded the drug developer's stock to “sell” from “neutral”.

Technology provided the biggest boost to the S&P, climbing 0.5 percent, with an outsized gain from Microsoft which traded two percent higher.

Home Depot contributed gains on the Dow after posting first-quarter earnings of $1.67 per share on revenue of $23.89 billion. Shares of Home Depot gained around 1.5 percent.

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Usd/cny Likely to Trade Around 6.98 by End-2017, says Lloyds Bank



In the past month, the USD/CNY pair has traded in a range of 6.87-6.91. But since the beginning of 2017, the currency pair has gradually increased from its January’s low of 6.83. Weaker-than-expected economic data in the past month have again raised worries regarding devaluation in an attempt to stimulate economic activity, noted Lloyds Bank.

These worries, at this stage, are believed to be overdone, greatly because of tighter liquidity conditions in China and recent attempts to stem portfolio outflows. China’s policymakers might depend on looser monetary policy rather than the currency to stimulate growth. Overall, the Chinese yuan has greatly underperformed other Asia currencies since the beginning of this year. This might alleviate pressure on the People’s Bank of China to devalue to keep external competitiveness.

“We do view the CNY as modestly overvalued and forecast USD/CNY to end the year at 6.98”, added Lloyds Bank.

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Dollar Tumbles on Trump’s Political Uncertainty



The dollar pared gains from the post election rally that drove the currency to its highest level since 2002, in an indication that investors are losing more faith in the so-called Trump trade. The ICE U.S. dollar index, which tracks the dollar versus a basket of six peers, dropped 0.8 percent in late Wednesday in New York to 97.39. The greenback fell versus the Japanese yen, euro and the British pound. Just days ahead of the election of President Donald Trump, the dollar surged in a wide market rally.

Several investors fear that political turmoil in Washington is wearing away the U.S. administration's ability to deliver on its tax-overhaul and fiscal-spending proposals. Such plans were highly anticipated to stimulate U.S. economic growth and also helped sent the greenback to a 14-year peak following the election.

Hedge funds and other investors have pulled back wagers on a firmer dollar, which has fallen to its weakest level since early October.

The dollar dropped two percent against the perceived safe-haven yen. It is the largest daily percentage fall since July 2016. Other assets seen as safe, which includes the Swiss franc and gold, have all gained.

Markets are implying a 65 percent likelihood that the Federal Reserve will hike interest rates at its next meeting in June, CME Group data revealed.

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Fxwirepro: Eur/krw Remains Well supported Above 1,251 Mark, sustained Close Above Targets 1,287 Mark



EUR/KRW is currently trading around 1,252 mark.

Pair made intraday high at 1,252 and low at 1,251 levels.

Intraday bias remains neutral till the time pair holds key support at 1,251 mark.

A daily close below 1,251 will drag the parity down towards key supports around 1,234, 1,225, 1,218, 1,207, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.

Alternatively, a sustained close above 1,251 will take the parity higher towards key resistances around 1,260, 1,274, 1,287 and 1,304 marks respectively.

Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.

Seoul shares open up 0.08 pct at 2292.90. We prefer to take long position in EUR/KRW around 1,251, stop loss at 1,240 and target of 1,260/1,287.

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Wall Street Gains, Rebounds from Largest Sell-Off in the Year



EUR/KRW is currently trading around 1,252 mark.

U.S. equities advanced, recovering from their worst day of the year, with investors pricing in President Donald Trump's chances of proceeding with his pro-growth agenda.

Investors remain focused on Washington following reports that Trump attempted to interfere with a probe into former National Security Adviser Michael Flynn's relations with Russia.

The Dow Jones industrial average climbed 0.27 percent to 20,663.02, as Wal-Mart led gains and Cisco lagged behind. The S&P 500 rose 0.37 percent to close at 2,365.72, with telecommunications leading nine sectors up while energy led losses. The Nasdaq composite was up 0.73 percent at 6,055.13.

The Telecommunications Services sector was the S&P's largest percentage advancer with a 1.2 percent gain. U.S. telecom regulators voted to proceed with a Republican plan to reverse a 2015 “net neutrality” order. The S&P 500's technology sector rebounded 0.6 percent.

Among shares active on corporate news, Cisco Systems dropped 7.2 percent after the firm issued weak guidance. Shares of Wal-Mart climbed 3.2 percent at $77.54 after its quarterly earnings exceeded analysts' forecasts.

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Fxwirepro: South Korean Won Marginally Higher Despite Lower Than expected Ppi Growth Data



EUR/KRW is currently trading around 1,249 mark.

Pair made intraday high at 1,251 and low at 1,248 levels.

Intraday bias remains neutral till the time pair holds key support at 1,250 mark.

A daily close below 1,250 will drag the parity down towards key supports around 1,242, 1,234, 1,225, 1,218, 1,207, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.

Alternatively, a sustained close above 1,250 will take the parity higher towards key resistances around 1,260, 1,274, 1,287 and 1,304 marks respectively.

Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.

Seoul shares open up 0.53 pct at 2300.68.

South Korea’s April PPI growth m/m decrease to -0.1 % vs previous 0.0 % (revised from -0.1 %).

South Korea’s April PPI growth y/y decrease to 4 % vs previous 4.3 % (revised from 4.2 %).

We prefer to take short position in EUR/KRW only below 1,247, stop loss at 1,260 and target of 1,240/1,234.

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Subaru Plans to Spend $1.2 Billion on R&D, Considers Electric Vehicles



Subaru Corp. is weighing on electric versions of its current models for the company's first venture into technology, as it looks into battery-powered vehicles in the face of tightening emissions rules. The Japanese automaker is planning to make record investments in research and development during this financial year. It is considering installing electric powertrains in existing models instead of producing an all-new vehicle, according to Chief Executive Officer Yasuyuki Yoshinaga.

The decision will provide Subaru the advantage of capitalizing on its reputation for safety while also removing the need to team up with another automaker, Yoshinaga said.

Subaru aims to spend more on electrification than other technologies as it quickly moves into plug-in a hybrid model to market in 2018 and an all-electric vehicle by 2021. The Japanese company is budgeting 134 billion yen ($1.2 billion) on research and development in the 12 months through March 2018.

Other big Japanese automakers have also stepped up efforts to produce electric vehicles. Toyota Motor Corp. is planning to spend 1.05 trillion yen on R&D while Honda Motor Co. is aiming to invest 750 billion yen.

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Euro Area Manufacturing Pmi Index Likely to have dropped Slightly in May



Manufacturing industry globally has been rebounding from quite a subdued performance recorded in the last few years. The markets would be able to measure if the recent improvement in the manufacturing continues to be in place after the flash manufacturing PMIs are released for the euro area and Germany.

In April, the euro area manufacturing PMI was at a high of 56.7 in April. According to consensus expectations, the manufacturing PMI is expected to have dropped slightly to 56.5 in May. The manufacturing PMI has been gradually improving in the euro area since August 2016. In the meantime, the German manufacturing PMI is expected to have come down a bit to 58 in May from April’s reading of 58.2. If the projections are correct, it would be the second straight drop in the index in 2017.

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