Forex News from InstaForex

[IFX Gertrude]

Benchmark Treasury Yield Hits Multi-Weeks High after French Vote



U.S. government bond prices fell and drove up yields after Emmanuel Macron emerged victorious in the runoff for the French presidential election, easing geopolitical worries that anti-EU Marine Le Pen would win.

The yield for the benchmark 10-year Treasury note rose 2.4 bps to 2.376 percent, its highest level in six weeks. Meanwhile, the yield on the two-year Treasury note edged up 1.2 bps to the fourth day in a row to 1.330 percent, its longest winning stretch since early March. The yield for the long bond or the 30-year note advanced 2.5 bps to 3.013 percent.

Risk appetite improved and investors shed their safe-haven assets as Macron's conclusive defeat of the far-right contender Le Pen was perceived as a decisively indicative test for the wave of populism rising over Europe, allaying markets that have become anxious over a rising support for the anti-EU establishment politicians.

The gap or spread between German and French bond yields, has now fallen to 41.7 bps from a peak of 78 bps in February. Traders are also now looking forward to the wave of economic data

News are provided byInstaForex.

[IFX Gertrude]

China CPI Climbs To 1.2% In April



Consumer prices in China were up 1.2 percent on year in April, the National Bureau of Statistics said on Wednesday.

That topped expectations for an increase of 1.1 percent and was up from 0.9 percent in March.

On a monthly basis, inflation added 0.1 percent after slipping 0.3 percent in the previous month.

The bureau also said that producer prices climbed 6.4 percent on year - shy of forecasts for 6.7 percent and down from 7.6 percent a month earlier.

News are provided byInstaForex.

[IFX Gertrude]

ESPN’s Woes Weigh on Disney



Walt Disney Co. failed to pacify investors' worries regarding its cable unit, as it reported that profit in the business slump in the latest quarter.

ESPN saw a decline in subscriber and drained more money due to its higher programming expenditures. The unit's worries eclipse a quarterly profit that beat projections, causing Disney shares to retreat 2.4 percent in extended trading.

The cable division's sales registered at $4.06 billion, shy of the $4.2 billion average estimates by analysts. The business' profit also fell by 3 percent, according to the firm, due to the higher costs for NBA games and football.

The quarterly results reveal the biggest entertainment company struggling to manage the issues at its biggest business. Investors have been closely monitoring how ESPN will handle the shift in television as viewers turn away from old school pay TV services and shift towards online services. Despite Disney adding new customers on new digital platforms, it was not enough to offset the subscriber losses in its basic cable division.

The cable division's problems overshadowed the strong results in other businesses. Disney's total profit climbed to $1.50 per share in the second quarter, beating estimates of $1.41 per share.

News are provided byInstaForex.

[IFX Gertrude]

Japan April Bank Lending Gains 3.0% On Year



Overall bank lending in Japan was up 3.0 percent on year in April, the Bank of Japan said on Thursday - coming in at 514.531 trillion yen.

That was in line with expectations and unchanged from the previous month.

Excluding trusts, lending also advanced an annual 3.0 percent to 447.634 trillion yen - again unchanged and matching forecasts.

Lending from trusts gained 2.8 percent to 66.896 trillion yen, while lending from foreign banks spiked 14.7 percent to 2.207 trillion yen.

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[IFX Gertrude]

Fox’s Profits Weighed Down by Weak Ad Sales



Rupert Murdoch's 21st Century Fox posted a profit drop in the most recent quarter, weighed down by the weak cable advertising and lack of box office hits during the period.

While ad revenue jumped at the Fox broadcast network due to the ratings of the much-awaited Super Bowl and an additional playoff, cable advertising sales fell as they have for other entertainment firms who have reported quarterly results in the last two weeks.

But during a call with investors, CEO James Murdoch project cable ad sales will advance at a high single-digit rate this quarter. Despite the loss of its most known host, Bill O'Reilly, Fox News has managed to keep its high ratings and the firm's faith in the business remains solid.

Revenue from cable programming increased 2.1 percent to $4.02 billion, slowed down by the flat local advertising and a decline in international ad sales. The revenue from Fox's biggest business also did not reach estimates of $4.13 billion on average. Total revenue, helped by the Super Bowl advertising, climbed 4.6 percent to $7.56 billion in the quarter ended March 31, but was shy of the projected $7.64 by analysts.

The result announcement caused the stock to fall 1.4 percent to $27.50 in late hours trading. It shed 1.2 percent to close at $27.90 in New York.

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[IFX Gertrude]

Fxwirepro: Eur/krw Hits Fresh 3-Week Low at 1,218 Mark, Consistent Close Below Targets 1,207 Mark



EUR/KRW is currently trading around 1,220 mark.

Pair made intraday high at 1,221 and low at 1,218 levels.

Intraday bias remains neutral till the time pair holds key support at 1,218 mark.

A daily close below 1,219 will drag the parity down towards key supports around 1,212, 1,207, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively. Alternatively, a sustained close above 1,219 will take the parity higher towards key resistances around 1,230, 1,237, 1,249, 1,262 and 1,274 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 down 0.01 pct at 2296.06.

We prefer to take short position in EUR/KRW only below 1,218, stop loss at 1,230 and target of 1,207/1,200.

News are provided byInstaForex.

[IFX Gertrude]

Verizon to Buy Straight Path for Nearly $3.1 Billion



Telecommunications conglomerate Verizon Communications Inc. is set set to buy wireless spectrum holder Straight Path Communications Inc. for around $3.1 billion, roughly double of rival AT&T's initial offer. Verizon aims to gain an advantage in the race towards a 5G network.

Straight Path holds licenses to use high-frequency radio waves that some engineers believe would form the foundation of next-generation networks. The company is one of the biggest holders of millimeter wave spectrum. Furthermore, 5G is expected to boast higher speeds, shorter response times and more capacity.

Verizon will pay $184.00 per share in Verizon stock for the firm. The $184 a share all-stock offer represents a discount of 17.8 percent to Straight Path's close on Wednesday and an equity value of $2.3 billion. The stock jumped almost five-fold since April 7.

Back in April, AT&T announced it would buy Straight Path for $1.25 billion in an an all stock deal. Straight Path then said that it received a bid from an unnamed bidder that Reuters reported was actually Verizon, citing sources. In January, Straight Path placed itself on the block.

On behalf of Straight Path, Verizon will pay a termination fee of $38 million to AT&T. The deal is seen to close within nine months. As part of an earlier settlement, Straight Path will also have to pay the U.S. government a 20 percent cut from the sale of its spectrum licenses.

News are provided byInstaForex.

[IFX Gertrude]

Fxwirepro: Thai Baht Gains on the Back of Higher Than expected Gdp Data



USD/THB is currently trading around 34.60 marks.

It made intraday high at 34.67 and low at 34.57 marks.

Intraday bias remains bearish till the time pair holds key resistance at 34.74 marks.

On the top side, key resistances are seen at 34.74, 34.82, 34.97, 35.11, 35.20, 35.32, 35.42, 35.62, 35.74, 35.84, 35.93, 36.01, 36.08 and 36.39 marks respectively.

Alternatively, a daily close below 34.66 will drag the parity down towards key supports around 34.54, 34.41, 34.34, 34.24 and 34.01 marks respectively. Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.

Thailand’s Q1 GDP +3.3 pct yr/yr (vs +3.2 pct in poll).

Thailand’s Q1 GD +1.3 pct q/q seasonally adjusted (vs +1.2 pct in poll).

We prefer to take short position in USD/THB around 34.65, stop loss at 34.75 and target of 34.41.

News are provided byInstaForex.

[IFX Gertrude]

Fairfax Media Acquires Revised $2.04 Billion Offer from TPG



Fairfax Media Ltd, which is one of the biggest media companies in Australia, announced it has obtained a revised A$2.76 billion ($2.04 billion) cash offer led by American investment firm TPG Capital Management for all of the company.

The offer from TPG and the Ontario Teachers' Pension Plan Board (OTPP) values the Australian newspaper publisher at A$1.29 per share, and compares with an initial proposal to purchase the firm's top mastheads, like The Sydney Morning Herald and The Australian Financial Review, as well as its property listings unit Domain for A$0.95 per share.

Investors would be left with scrip exposure to the Fairfax radio division, regional and New Zealand titles, a stake in an online television streaming startup and its debt. The TPG consortium valued such assets at A$0.25 to A$0.30 per share. The offer represents a 12 percent premium to the publisher's A$1.07 closing price.

If accepted, the offer will end Fairfax's plan to unlock shareholder value by offshooting it's profitable property listings unit, Domain.

A TPG spokesperson has declined to comment on the topic.

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[IFX Gertrude]

Fxwirepro: Usd/sgd Hits Fresh 2-Week Low at 1.3965 Mark, Stay Bearish



USD/SGD is currently trading around 1.3973 marks.

It made intraday high at 1.3982 and low at 1.3965 levels.

Intraday bias remains bearish till the time pair holds key resistance at 1.4046 marks. A daily close above 1.3982 will test key resistances at 1.4046, 1.4095, 1.4128, 1.4219, 1.4266, 1.4327, 1.4409 and 1.4506 levels respectively.

Alternatively, a consistent close below 1.3982 will drag the parity down towards key supports at 1.3964/1.3919/1.3851/1.3775/1.3704/1.3646 levels respectively.

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

We prefer to take short position in USD/SGD around 1.3980, stop loss 1.4027 and target of 1.3919.

News are provided byInstaForex.