Company News by ForexMart

[Andrea ForexMart]

The current Money Fall contest has already started on May 29, 2017 and will end on June 2, 2017.

You can register for the next competition which will take place from June 5, 2017 to June 9, 2017.

Note:
Registration for the next competition finishes 1 hour before the contest starts.

[Andrea ForexMart]

US Budget Concerns Casts Doubt on Fed Plans

The US Federal Reserve is more than ready to raise its interest rates this coming June, but the possibility of the Congress rattling up the markets by slowing down progress on increasing the debt ceiling of the US economy has cast a shadow of doubt on the Fed’s next scheduled rate hike on September. Prior to this development, the Fed has been saying that they are currently planning to implement two more rate hikes before the year ends, but has now reverted to saying that the third rate hike for year might be in for some delays if the market gets shaken by possible disagreements on fiscal policies.

[Andrea ForexMart]

Slow Growth of Scottish Economy, EY reports

Based on the forecast of the EY Scottish item club that the GDP growth will be weak falling below expectation with 0.9% growth this year where a half of it is expected for the Britain and will predominantly hit the retail sector. It is anticipated to fall by 0.1% this year and will decrease in a bigger number by 0.5% and 0.3% in 2018 and 2019 respectively.

Consumers will be greatly pressured from this which will increase by 1% in 2017 and below 1% in the succeeding years until 2020 while the employment is assumed to drop by fall this year.

On the other hand, the manufacturing sector will rise following the overall economy for the first time since 4 years ago, because of higher demand and depreciation of sterling which will boost exports.

Overall, the Scottish economy is foreseen to have a sluggish growth than the Britain by 0.7% in 2018 before gaining its momentum again to reach 1.4% growth within this decade.

[Andrea ForexMart]

Goldman Sachs Higher Rates to Gain More Clients

The Goldman Sachs Bank U.S.A. intends to increase its rates on client deposit by 1.2 percent from the previous 1.05 percent. The rate hike makes them higher than other financial institutions including CIT Bank, Synchrony Bank, and New York Community Bank's My
Banking Direct. The average rate is at 0.06 percent 0.06 percent as reported by the U.S. Federal Deposit Insurance Corporation.

They are searching for ways to improve lending in money management and investment banking category which they said to had a rough time with. In 2016, they introduced Marcus as their primary approach to consumer lending. This rate hike move hopes to expand profit of Goldman Sachs and appeal to additional Main Street clients which will eventually give bigger gains. Also, these deposits open a more robust type of funding and this would have stayed longer during uncertainty.

[Andrea ForexMart]

Limited Drop of Sterling in the Global Market Amid U.K. Parliamentary Election

On Friday, the British pound slumped following vague results without a particular party that dominated that election. Hence, investors are trying to weigh on risks including both events in the United States and Europe. As a result, the cable dropped by 2 percent amid the political problem that could hamper the Brexit talks and cause more uncertainty which will begin in more than a week.

Yields on 10-year gilt dropped by 3 basis points to 1.00 percent while the FTSE futures recovered as it gained 0.2 percent bringing hopes up to economic progress. The e-mini futures for the S&P 500 has a lesser impact as it increases by 0.1 percent.

The single currency slid overnight following the announcement of ECB forecast to ease inflation but did not talked to tune down the massive bond-buying campaign pushing bond yields to multi-month lows. Its effect in the global investment market can not be defined as it represents just 2.5 percent of world GDP.

limiteddropofsterling.PNG (237.22 KiB) Viewed 6777 times

[Andrea ForexMart]

The current Money Fall contest has already started on June 12, 2017 and will end on June 16, 2017.

You can register for the next competition which will take place from June 19, 2017 to June 23, 2017

Note:
Registration for the next competition finishes 1 hour before the contest starts.

[Andrea ForexMart]

ECB Not Yet to Withdraw Stimulus Program

The European Central Bank decided to loosen its monetary policy on Thursday but indicated that it further needs some support from the central bank amid increasing growth.
Mario Draghi, ECB president, is very cautious in his announcement regarding the withdrawal stimulus.

During the meeting held on Thursday which is accompanied by 25 members of the council, the bank kept its interest rates and bond-purchase stimulus program steady.

The governing council settled small adjustments towards the 19 emerging countries that utilizes the European currency by stating that interest rates could probably move lower. While Draghi issued another significant change as he described that risk to growth is currently “broadly balanced”, the tweak was announced during the April wherein risk are said to "tilted to the downside."

Carsten Brzeski, analyst at ING-DiBa, allegorize the bank’s statement to a baby’s first step intended to taper the stimulus effort. The financial institution preserved its bond-buying program at 60 billion euros ($67 billion) each month which will last this year or longer.
Moreover, ECB officials were in a stew for the market’s response to the untimely notice that the stimulus will end as the rates will climb higher, undermining the effects.

[Andrea ForexMart]

Finland’s Export Data Shows Signs of Recovery

The Bank of Finland forecast data shows the growth of Finland’s economy as exports recuperated gains although it still needed reform to enhance development and stronger public finances. This growth is marked as a big progress following a decade state in hiatus state due to various economic and business problems. The GDP progress is anticipated to improve by 2.1 percent in 2017 which is higher than the former forecast of 1.6 percent in March. In the previous year, the GDP grew by 1.4 percent.

Amid the steady growth of exports, the economic growth still depends on the private consumption and investment and will further progress when the employment condition gets better to support an increase in purchasing power. Hence, the center-right government has lessened expenditures and eased labor laws yet the central bank sees the need other strategies to boost the current and future growth.

[Andrea ForexMart]

Fed Implements Rate Hike, Maintains Outlook for Next Hike

The US Federal Reserve has pushed through with its planned interest rate hike for this month while outlining its plans to continue with stricter monetary policies in spite of the country’s weak inflation rates. FOMC officials approved the central bank’s third rate hike within a six-month period and hinted at possibly another rate hike just before the end of 2017. Fed Chair Janet Yellen stated in a press conference following the announcement that the bank’s plans of unwinding its policies might be implemented sooner than later, especially if the country’s economic status meets the expectations of the Fed. Moreover, the central bank is also looking into a three-quarter point rate increase for 2018 just like its previous projection last March.

[Andrea ForexMart]

NZ Below Expectation Economic Growth

The New Zealand economy climbed by 0.5 percent in the first quarter of the year but still lower than market expectations as the construction sector weakened. The forecast figure of the central bank is 0.9 percent while the analysts predicted it to attain 0.7 percent, which obviously fell short from both predictions.

Despite positive growth for the milk production and a moderate growth of GDP, these were out shadowed by weak data from the construction sector and the mixed results from the service sector. The construction data declined by 2.1 percent for Q1 that negated the 4.3 percent augmentation in agriculture particularly the milk production.

An economic analyst described this phenomenon to be transient and the economy will advance at estimated of 3.0 to 3.5 percent this year. Also, other sectors are performing well but there is no need for the Reserve Bank of New Zealand (RBNZ) to adjust its cash rate from a record low of 1.75 percent.