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[InstaForex Gertrude]

Japan Economy Contracts More Than Expected In Q3

Japanese economy entered in to recession in the three months ended September, as the GDP contracted for the second straight quarter, preliminary figures from the Cabinet Office showed Monday. Gross domestic product fell an annualized 0.8 percent in the third quarter, following a revised 0.7 percent decrease in the previous three months. Economists had forecast a 0.2 percent drop for the September quarter. On a seasonally adjusted basis, GDP slid 0.2 percent quarter-on-quarter in the three-month period to September, the same rate of contraction as in the preceding quarter. The figure was also matched with consensus estimate. In the first quarter of this year, the economy expanded 1.1 percent. Nominal GDP remained flat in the third quarter, defying economists' expectations for 0.2 percent decline. In the second quarter, the economy grew 0.2 percent.

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[InstaForex Gertrude]

US Treasury urges Japan to bolster economy

US Treasury Secretary Jack Lew has pressed Japan to proffer fiscal support to its economy to reignite growth in the country. Lew, in a statement, made the remarks during a bilateral meeting with Japanese Finance Minister Taro Aso on the sidelines of a G20 summit in Antalya, Turkey. He urged the country to fine-tune their fiscal policy to avert sluggish growth in the near future and ensure the return to domestic demand-driven growth can uphold consolidation efforts over the medium term. The Japanese economy slid 0.2% in the third quarter. The nation has faced recession four time since the global financial crisis.

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[InstaForex Gertrude]

Singapore NODX Falls Unexpectedly In October

Singapore's non-oil domestic exports declined unexpectedly in October, data from the International Enterprise Singapore showed Tuesday. NODX dropped 0.5 percent year-over-year in October, confounding economists' expectations for a 3.6 percent growth. In September, non-oil domestic exports had risen 0.3 percent. The annual decrease in October was caused by a contraction in electronic NODX which outweighed the increase in non-electronic NODX, the agency said. Exports of electronic products fell 3.2 percent annually in October, in contrast to the 5.7 percent rise in the previous month. This was largely due to the fall in exports of ICs, parts of ICs and parts of PCs. Economists had expected a 2.2 percent fall for the month. At the same time, shipments of non-electronic products grew 0.7 percent in October, reversing a 1.9 percent drop in September. On a monthly basis, NODX rose a seasonally adjusted 1.1 percent in October, following a 2.8 percent decrease in the preceding month.

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[InstaForex Gertrude]

Gender gap progress slows down - WEF

Women now earn what men did 10 years ago, highlighting the deceleration in global progress made in narrowing the gender division. The World Economic Forum's Global Gender Gap Report said the gap in education, economic opportunity, health, and politics worldwide has closed by 4% in the last decade, while the economic gap constricted by 3%. The WEF report implied it will take another 118 years to attain equality, and progress towards wage equality and labor force parity has stalled since 2009 or 2010. In 97 countries, more women than men are studying in university. Also, women comprise most of the skilled workers in only 68 nations and the majority of leaders in only four.

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[InstaForex Gertrude]

Fitch: Oil India's Net Price more Stable After New Subsidy-Sharing Scheme

Fitch Ratings says India's new subsidy-sharing framework for kerosene and liquefied petroleum gas (LPG) provides the two state-controlled upstream producers, Oil India Limited (OIL, BBB-/Stable) and Oil and National Gas Corporation, with more stability in their realised oil prices net of discounts. The overall subsidy burden on the state and the state oil and gas companies have reduced substantially after diesel prices were deregulated in October 2014. The two state-controlled upstream companies were previously required to provide their oil to refiners at substantial discounts not directly related to oil prices - as high as USD56 per barrel - as part of India's state-directed energy subsidies for end-users. Following the deregulation of diesel prices, the government said that for the fiscal year ending March 2016 (FY16), the maximum state subsidy to oil marketing companies to sell fuel below market prices will be limited to INR18/kg for cooking gas (LPG) and INR12/litre for kerosene; any additional subsidy will have to be borne by the oil producers. The net realised prices that the upstream companies receive on the sale of oil produced (market price of crude less discounts to refiners) will vary less under this new mechanism because the discounts they provide increase and decrease with the movement in global crude oil prices. Assuming an average Brent oil price of USD55/bbl in FY16, OIL's net realised oil price after subsidy discounts would be around USD51/bbl. This would be about 8% higher than the USD47/bbl reported in FY15. However, if Brent averages USD40/bbl for the remainder of FY16 (average FY16 price of USD51/bbl), OIL's net realised oil price would be little changed at around USD48/bbl, as the discount also falls. Conversely, if Brent averages USD60/bbl for the rest of the financial year (USD59/bbl on average in FY16), the net realised price by OIL would be around USD53/bbl after adjusting for a higher discount. Our estimates assume that OIL's oil output would be 3% lower yoy in FY16, based on its 1HFY16 results. We have used a USD-INR exchange rate of 64.5, based on 1HFY16 average. As for the oil marketing companies, they would be compensated fully by the government for selling LPG and kerosene below market prices under this arrangement. The above arrangement is through March 2016; it is yet not clear if the government would make any significant adjustments to the mechanism or the thresholds for the next fiscal year.

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[InstaForex Gertrude]

Fed minutes indicate December liftoff

Federal Reserve policymakers, who are looking at deferring an interest rate hike, are now contemplating a rate liftoff at its December meeting. At the October 27-28 meeting of the Federal Open Market Committee, policymakers cleared a rate increase would consider the move at their meeting on December 15 and 16. The doves lost the battle, and it emerged before the release of a better than projected “October jobs report that provided more evidence of an economy on solid ground,” said Diane Swonk, Chief Economist at Mesirow Financial Holdings Inc. The Fed minutes also revealed majority of participants agreed the conditions that would ignite a rate hike could be met by next month.

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[InstaForex Gertrude]

Asian shares to notch largest weekly gain in six weeks

Asian shares are slated to score their biggest weekly advance in six weeks, with Japanese stocks pulled lower by a firmer yen. The MSCI Asia Pacific Index ended at 133.71, down 0.2%, snipping this week's gain to 1.2%. On Thursday, the gauge recorded the biggest daily leap in a month despite optimism the Federal Reserve's tightening pace will be gradual. Japan's Topix index lost 0.4%. Hong Kong's Hang Seng Index added 0.1%. Hang Seng China Enterprises Index accrued 0.2%. South Korea's Kospi index gained 0.1%.

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[InstaForex Gertrude]

Pound Edges Up Against Most Majors

The British pound strengthened against most major currencies in the Asian session on Friday. The pound rose to 1.5299 against the U.S. dollar and 188.00 against the yen, from yesterday's closing quotes of 1.5289 and 187.84, respectively. Against the euro, the pound edged up to 0.7005 from yesterday's closing value of 0.7018. If the pound extends its uptrend, it is likely to find resistance around 1.54 against the greenback, 189.00 against the yen and 0.69 against the euro.

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[InstaForex Gertrude]

Treasuries Close Modestly Lower After Seeing Early Strength



After moving modestly higher in early trading, treasuries turned lower over the course of the trading session on Friday. Bond prices pulled back in early afternoon trading and remained in the red going into the close. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.4 basis points to 2.262 percent. The downturn by treasuries may partly have reflected profit taking on the heels of the upward trend seen over the past several sessions. Amid a relatively quiet day on the U.S. economic front, traders also kept an eye on speeches by a pair of Fed officials. In remarks at an event in Fort Smith, Arkansas, St. Louis Fed President James Bullard repeated a speech he delivered at a separate event earlier this month. Bullard noted the market-based probabilities of a near-term end to the zero interest rate policy have increased but stressed any decision will be data dependent. Additionally, New York Fed President William Dudley spoke at Hofstra University on Long Island, telling students the U.S. economy is in pretty good shape. Dudley said the Fed hopes to soon become reasonably confident that inflation will return to the 2 percent inflation target. The New York Fed also stressed that the decision on interest rates would be data dependent, noting that there will be four weeks of data before the next monetary policy meeting. While the markets will be closed next Thursday for Thanksgiving, traders will be presented with a slew of U.S. economic data in the days leading up to the holiday. Traders are likely to pay close attention to reports on new and existing home sales, durable goods orders, and personal income and spending. Bond trading could also be impacted by reaction to the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes. The Treasury is due to sell $26 billion worth of two-year notes next Monday, $35 billion worth of five-year notes next Tuesday, and $29 billion worth of seven-year notes next Wednesday.

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[InstaForex Gertrude]

Euro Falls Against Majors

The euro weakened against the other major currencies in the Asian session on Monday. The euro fell to nearly a 7-1/2-month low of 1.0600 against the U.S. dollar, nearly a 7-month low of 130.57 against the yen and a 5-day low of 1.0825 against the Swiss franc, from last week's closing quotes of 1.0643, 130.70 and 1.0842, respectively. Against the pound, the euro dropped to 0.6992 from Friday's closing value of 0.7007. If the euro extends its downtrend, it is likely to find support around 1.05 against the greenback, 129.00 against the yen, 1.07 against the franc and 0.695 against the pound.

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[InstaForex Gertrude]

Japan government plans to raise minimum wage to boost economy: draft

Japanese government is planning to raise the minimum wage paid to other workers to strengthen its economy, and to meet its target nominal GDP to 600 trillion yen in 5 years, a draft of economic stimulus measures showed on Monday. A Reuters-obtained draft showed that the government is also offering some financial support to people living off their pensions to boost consumer spending. Prime Minister Shinzo Abe's government will also provide a time frame for lowering the corporate tax rate below 30% to improve competitiveness, the draft showed.

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[InstaForex Gertrude]

US politicians condemn Pfizer-Allergan deal

US politicians slammed Pfizer Inc.'s decision to acquire Allergan Plc for $160 billion, considering the move as tax evasion. Democrats heavily criticized Pfizer, with Hillary Clinton accusing the drugmaker of utilizing legal loopholes to dodge its fair share of taxes and leaving the burden on American taxpayers. Senator Bernie Sanders said the agreement would enable major US companies to conceal its profits abroad. Republican presidential candidate Donald Trump, who pressed for overhauling corporate tax, described the deal as disgusting. Under the deal, the merged company will be called Pfizer and will be operated by Pfizer Chief Executive Ian Read. Also, the executive management will remain in New York, as well as its extensive operations throughout the country.

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[InstaForex Gertrude]

U.S. Dollar Falls Against Majors



The U.S. dollar weakened against the other major currencies in the Asian session on Tuesday. The U.S. dollar fell to a 5-day low of 122.67 against the yen and a 4-day low of 1.0169 against the Swiss franc, from yesterday's closing quotes of 122.84 and 1.0179, respectively. Against the euro and the pound, the greenback dropped to 1.0645 and 1.5139 from yesterday's closing quotes of 1.0635 and 1.5122, respectively. The greenback edged down to 1.3341 against the Canadian dollar, from yesterday's closing value of 1.3364. If the greenback extends its downtrend, it is likely to find support around 121.00 against the yen, 1.00 against the franc, 1.08 against the euro, 1.53 against the pound and 1.31 against the loonie.

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[InstaForex Gertrude]

Japan Manufacturing Growth At 20-Month High

Japan's manufacturing activity expanded at the fastest pace in twenty months in November, as output growth quickened, the latest flash survey from Markit Economics showed Tuesday. The Markit/ Nikkei Manufacturing Purchasing Managers' Index, or PMI, rose to 52.8 in November from 52.4 in October. A score above 50 indicates expansion in the sector. Manufacturing output cotniuned to grow sharply in November and the latest rate of increase was the fastest since March 2014. At the same time, new orders rose at a slower rate in November, while growth in exports orders accelerated to a five-month high. On the price fornt, input prices climbed at the fastest rate in four months, although inflation remained historically muted. The final manufacturing PMI figures will be published on 1st December


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[InstaForex Gertrude]

Australia Construction Work Drops 3.6% In Q3

The total value of construction work done in Australia slipped a seasonally adjusted 3.6 percent on quarter in the third quarter of 2015, the Australian Bureau of Statistics said on Wednesday - standing at A$49.040 billion. That missed forecasts for a decline of 2.0 percent following the 1.6 percent increase in the second quarter. On a yearly basis, construction work was down 3.7 percent. The value of building work added 0.6 percent on quarter and 6.4 percent on year to A$24.156 billion. Residential work gained 2.0 percent on quarter and 12.4 percent on year to A$15.523 billion, while non-residential work fell 1.9 percent on quarter and 3.0 percent on year to A$8.633 billion. The seasonally adjusted estimate for engineering work completed slipped 7.3 percent on quarter and 11.7 percent on year to A$24.884 billion in Q3. Also on Wednesday, the government noted that skilled vacancies were up 0.6 percent on month in October after rising a downwardly revised 1.1 percent in September (originally 1.8 percent).

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[InstaForex Gertrude]

EU flags potential economic troubles on imbalances

The European Commission warned of potential economic troubles in 12 of the 19 eurozone countries, including Germany, and findings will be released in February. Through its monitoring policy, the commission said it will closely look at imbalances in the following countries: Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Spain, and Slovenia. The policy was unveiled at the peak of the euro debt crisis. High trade surplus was attributed to Germany, leaving it susceptible to an economic slowdown elsewhere. The commission added the six nations, Bulgaria, Croatia, Hungary, Romania, Sweden, and the United Kingdom, that do not use the euro will face renewed monitoring as well.

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[InstaForex Gertrude]

Singapore Dollar Falls To 2-day Low Against U.S. Dollar

The Singapore dollar weakened against the U.S. dollar in the Asian session on Friday. Against the greenback, the Singapore dollar fell to a 2-day low of 1.4097 from an early high of 1.4070. At yesterday's close, the Singapore dollar was trading at 1.4081 against the greenback. If the Singapore dollar extends its downtrend, it is likely to find support around the 1.42 area.

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[InstaForex Gertrude]

Gold Ends Week At 5-year Year Lows

Gold prices fell for a sixth consecutive week, with Friday's losses pushing the preious metal to its lowest in more than five years. A stronger dollar contributed to the decline. Gold futures for December delivery settled down $13.80, or 1.3% at $1,056.20 an ounce on Comex. Expectations that the Federal Reserve will raise interest rates next month are weighing on prices.


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[InstaForex Gertrude]

Japan Industrial Production Climbs 1.4% In October



Industrial output in Japan gained a seasonally adjusted 1.4 percent on month in October, the Ministry of Economy, Trade and Industry said in Monday's preliminary reading - rising for the second straight month. That missed forecasts for an increase of 1.8 percent, although it was up from 1.1 percent in September. On a yearly basis, industrial production slipped 1.4 percent - also missing expectations for a decline of 0.9 percent following the 0.8 percent drop in the previous month. Upon the release of the data, the METI maintained its assessment of industrial production, saying that it has been fluctuating indecisively. Industries that mainly contributed to the monthly increase included business oriented machinery, transport equipment and electronic parts and devices. According to the survey of production forecast in manufacturing, production is expected to rise 0.2 percent in November and fall 0.9 percent in December. Industries that mainly contributed to the increase in November included communication electronics equipment, electrical machinery, and electronic parts and devices. Industries that mainly contributed to the decline in December included business-oriented machinery, transport equipment and electronic parts and devices. Shipments in October were up 2.1 percent on month, rising for the second straight month. They were also down 0.8 percent on year. Industries that mainly contributed to the increase included transport equipment, business oriented machinery and electronic parts and devices. Inventories in October dipped 1.9 percent on month, falling for the second straight month. They were also up 0.2 percent on year. The inventory ratio in October fell 3.0 percent on month, falling for the second consecutive month. It also fell 0.5 percent on year. Also on Monday, the METI said that the total value of retail sales in Japan was up 1.8 percent on year in October - topping forecasts for an increase of 0.9 percent following the 0.1 percent decline in September. Sales from large retailers were up 2.9 percent on year, just missing forecasts for an increase of 3.0 percent but still up from 1.7 percent in the previous month. On a seasonally adjusted monthly basis, retail sales advanced 1.1 percent - beating forecasts for a gain of 0.3 percent and up from 0.8 percent in the three months prior.

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[InstaForex Gertrude]

Treasuries Rise as China Stock Decline Drives Demand for Safety

Treasuries soared as it heads for their biggest gain in 2 weeks, as a fall in Chinese shares drove demand for the relative safety of U.S. government securities. The U.S. 10-year yield declined three basis points to 2.21% as of 7:01 a.m. in London, according to Bloomberg Bond Trader data. The benchmark 2.25% note due in November 2025 advanced 1/4, or $2.50 per $1,000 face amount, to 100 3/8. Treasuries fell1.1% over the past month, the worst performer of 26 bond markets around the world tracked by Bloomberg and the European Federation of Financial Analysts Societies.

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