Forex News from InstaForex

[IFX Gertrude]

Euro Weighed Down by Greece Bailout as Stocks Retreat



The euro slipped on Tuesday following a media report that revealed prospects of Greece relinquishing its next bailout payment if creditors fail to meet a debt relief deal. Asian stocks continue to trade in thin volume due to holidays in some regional markets, the United States and the U.K.

The common currency fell 0.2 percent to $1.1136 in its third session in a row of declines following a German press report which stated that Athens might forego its next bailout payment.

Eurozone finance ministers have yet to reach an agreement with the International Monetary Fund regarding Greek debt relief to release fresh loans to Athens however, it did come close enough to do both at their meeting next month.

"The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro-zone," according to James Woods, global investment analyst at Rivkin in Sydney.

Other factors that added pressure on the euro were European Central Bank President Mario Draghi reiterating the need to extend stimulus as well as the possibility of an early elections in Italy.

European blue-chip stocks dropped 0.2 percent the previous day, as Italy's banking index tumbled 3.4 percent, its largest loss in almost four months, after two banks sought help to cover a capital deficit.

MSCI's broadest index of Asia-Pacific shares excluding Japan was little changed early on Tuesday.

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[IFX Gertrude]

Japan Industrial Output Rises 4.0% In April



Industrial output in Japan advanced 4.0 percent on month in April, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading.

That was shy of expectations for an increase of 4.2 percent following the 1.9 percent decline in March.

On a yearly basis, industrial production climbed 5.7 percent - again missing forecasts for a gain of 6.1 percent following the 3.5 percent increase in the previous month.

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[IFX Gertrude]

Wall Street Retreats as S&P, Nasdaq Ends 7-Day Winning Streak



U.S. stocks finished lower on Tuesday, as tech's gains were not enough to keep the S&P and Nasdaq from breaking a seven-day winning streak. Investors priced in key economic data while weakness in the energy and financial sectors added pressure.

The Dow Jones industrial average dropped 0.24 percent to end at 21,029.47, with Goldman Sachs leading losses and Verizon was the best performer. The S&P 500 fell 0.12 percent to 2,412.91, as energy led seven sectors down while telecommunications was the largest gainer. The Nasdaq Composite shed 0.11 percent to finish at 6,203.19.

The energy sector's 1.31 percent decline made it the worst performer among the major S&P 500 sectors. Shares of Exxon fell 0.6 percent.

Financial stocks, which slipped 0.8 percent, also weighed on the S&P 500. JPMorgan dropped 1.7 percent while Bank of America fell 1.4 percent.

Telecoms rose 1.4 percent following an upgrade from MoffettNathanson to “neutral” from “underweight”, citing a lack of negative near-term catalysts.

The technology sector climbed 0.31 percent, lifted by advances in Apple and Microsoft, both rising 0.6 percent.

Amazon gained 0.1 percent at $996.70, after briefly hitting the $1,000 mark. Alphabet's Class A followed suit by touching a record of $997.62 before closing the session 0.3 percent higher at $996.17.

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[IFX Gertrude]

Wall Street Retreats as S&P, Nasdaq Ends 7-Day Winning Streak



U.S. stocks finished lower on Tuesday, as tech's gains were not enough to keep the S&P and Nasdaq from breaking a seven-day winning streak. Investors priced in key economic data while weakness in the energy and financial sectors added pressure.

The Dow Jones industrial average dropped 0.24 percent to end at 21,029.47, with Goldman Sachs leading losses and Verizon was the best performer. The S&P 500 fell 0.12 percent to 2,412.91, as energy led seven sectors down while telecommunications was the largest gainer. The Nasdaq Composite shed 0.11 percent to finish at 6,203.19.

The energy sector's 1.31 percent decline made it the worst performer among the major S&P 500 sectors. Shares of Exxon fell 0.6 percent.

Financial stocks, which slipped 0.8 percent, also weighed on the S&P 500. JPMorgan dropped 1.7 percent while Bank of America fell 1.4 percent.

Telecoms rose 1.4 percent following an upgrade from MoffettNathanson to “neutral” from “underweight”, citing a lack of negative near-term catalysts.

The technology sector climbed 0.31 percent, lifted by advances in Apple and Microsoft, both rising 0.6 percent.

Amazon gained 0.1 percent at $996.70, after briefly hitting the $1,000 mark. Alphabet's Class A followed suit by touching a record of $997.62 before closing the session 0.3 percent higher at $996.17.

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[IFX Gertrude]

Japan Capex Jumps 4.5% In Q1



Capital spending in Japan was up 4.5 percent on quarter in the first three months of 2017, the Ministry of Finance said on Thursday.

That beat forecasts for an increase of 4.0 percent following the 3.8 percent gain in the previous three months.

Excluding software, capex climbed 5.2 percent - again exceeding expectations for 4.1 percent and up from 3.3 percent in Q4.

Company profits surged 26.6 percent after jumping 16.9 percent three months earlier, while company sales climbed 5.6 percent - up from 2.0 percent in Q4.

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[IFX Gertrude]

Wall Street Flat as Defensive Stocks Rise, Financials Slip



Wall Street was flat on the final trading day of May, as a decline in the financials sector counterbalanced gains in defensive plays. The tech-heavy Nasdaq gained 2.5 percent in May and touched a seven-month winning streak, its longest since 2013.

The Dow Jones industrial average slipped 0.1 percent to end at 21,008.65, as Goldman Sachs led losses while Pfizer was the best performer. The S&P 500 fell 0.05 percent to close at 2,411.80, as financials led four sectors down while utilities outperformed. The Nasdaq Composite shed 0.08 percent to 6,198.52.

Financials rallied over 20 percent in the aftermath of the U.S. presidential election on prospects of fiscal stimulus and deregulation under President Donald Trump. However it is currently struggling. The sector is 0.3 percent lower on the year.

JPMorgan blamed lower volatility for the 15 percent loss in trading revenue in the second quarter compared to 2016. Bank of America said trading revenue in the current quarter is poised to be 10 to 12 percent off than the previous year.

Shares of JPMorgan fell 2.1 percent and Bank of America slipped 1.9 percent, as both weighed on the S&P 500 the most. Goldman Sachs tumbled 3.3 percent, adding the most pressure on the Dow.

Defensive plays like utilities rose 0.46 percent while telecoms gained 0.35 percent. Energy stocks dropped 0.4 percent as oil prices notched a three-week low.

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[IFX Yvonne]

China Imposes Tighter Cybersecurity Law



China has started enforcing its new cybersecurity law overseeing data gathering, amid backlash and concerns from the global community.

Essentially, the new law is requiring companies to maintain collated client information within China. Entities need to secure approval before transmitting these details outside the Asian country.

The decree, ratified in November by the country's legislative body, intends to strengthen the security of the Internet and data in response to the increasing number of firms which collect and review such details to either render services or create business plans.

Foreign entities requested for delaying the implementation of this legislation, but it did not push through. Chinese officials and non-Chinese companies are awaited to discuss the new law soon.

[IFX Gertrude]

Australia Q1 Inventories Jump 1.2% On Quarter



Inventories in Australia were up a seasonally adjusted 1.2 percent on quarter in the first three months of 2017, the Australian Bureau of Statistics said on Monday.

That beat forecasts for a rise of 0.5 percent following the 0.3 percent gain in the previous three months.

Inventories were up 2.5 percent on year. Company operating profits advanced 6.0 percent on quarter - also exceeding expectations for 5.0 percent but down from 20.1 percent in the three months prior.

Profits were up 39.7 percent on year.

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[IFX Gertrude]

Dollar Nurses Losses after Weak U.S. Data, Pound Slips after London Attacks



The dollar came close near a seven-month low touched after latest U.S. jobs growth in May fell short of expectations while terror attacks in London which left nearly seven people dead and 48 injured ahead of the national election dented the sterling.

The dollar index against a basket of six major currencies touched its lowest level since the November election. It last stood little changed in early Asian trading at 96.736, but not far from Friday's low of 96.654, its weakest since Nov. 9.

The sterling inched down, under pressure after the third terrorist attack in Britain. It fell as much as 0.3 percent against the dollar. Sterling trimmed losses to trade 0.2 percent lower at $1.2871 early on Monday.

The pound was battered over the past two weeks with polls showing a tightening race, which raises the possibility of a hung parliament. Leveraged clients await the results of new polls taken after the incident, according to a trader.

The greenback was stable at 110.40 yen, after slipping 0.8 percent on Friday.

The U.S. 10-year Treasury yield was at 2.1547 on Monday, having dropped from Thursday's close of 2.217 before the jobs data was released.

The euro was down 0.1 percent to $1.12745 on Monday, holding on to most of Friday's 0.6 percent gain.

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[IFX Gertrude]

New Zealand Building Volume Slides 3.5% In Q1



The total volume of building in New Zealand was down a seasonally adjusted 3.5 percent on quarter in the first three months of 2017, Statistics New Zealand said on Tuesday.

That misses forecasts for a gain of 0.3 percent following the downwardly revised 1.3 percent increase in the previous three months (originally 1.9 percent).

Residential building activity shed 0.8 percent on quarter, while non-residential building activity skidded 7.2 percent.

The value of building work on new homes was NZ$2.7 billion in Q1.

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