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U.S. Energy Chief Orders Study of Electric Grid to Ensure Power Supplies

U.S. Energy Secretary Rick Perry called for a study of the U.S. electric grid, with the focus on examining whether policies which promote wind and solar energy are further accelerating the retirement of coal and nuclear plants significant to assure stable and reliable power supplies.

The 60-day review follows as regulators try to figure out how they could balance electric reliability with a stack of state policies that are more focused on less stable renewable energy sources. U.S. President Donald Trump has moved to dismantle Obama-era policies which impeded coal-fired power plants. Regulations that Perry claims have reduced jobs and threatened to weaken the grid's performance. Perry's move implies that the administration is looking for ways to maintain coal plants online.

The study comes after the G-7 Energy Ministerial meeting in Rome where a discussion was made for the need to diversify the supply of electricity. German consumers have been bearing the expense for a green transition, as it promptly shuts nuclear plants and embraces renewable power.

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Fxwirepro: Thai Baht Marginally Higher in Early Hours of Asia, Faces Strong Support at 34.24

USD/THB is currently trading around 34.30 marks.

It made intraday high at 34.35 and low at 34.30 marks.

Intraday bias remains bearish till the time pair holds key resistance at 34.45 mark.

On the top side, key resistances are seen at 34.45, 34.56, 34.67, 34.85, 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 34.35 will drag the parity down towards key supports around 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.

We prefer to take short position in USD/THB only below 34.24, stop loss at 34.44 and target of 34.01.

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New Zealand’s Consumer Price Inflation Accelerates Above Expectations in Q1 2017

New Zealand’s consumer price index rose 2.2 percent year-on-year in the first quarter of this year, showed Statistics New Zealand. This is the highest annual rise since the first quarter of September 2011. It is above market expectations of 2 percent. Statistics New Zealand senior manager Jason Attewell stated that increasing prices of petrol along with the annual increase in tax of cigarette and tobacco lifted inflation.

Prices related to housing continued to rise in the quarter, rising 3.3 percent year-on-year. Meanwhile, transport prices were up 3.5 percent, the second largest contribution to the inflation, with petrol partly countered by declines in other private transport services. Stripping out cigarettes, petrol and tobacco, the consumer price index rose 1.5 percent year-on-year in the March quarter.

On a quarter-on-quarter basis, the consumer price index was up 1 percent in the first quarter after a 0.4 percent rise in the fourth quarter of 2016. This is above the market expectations of a rise of 0.8 percent. Adjusting for seasonal effects, consumer price inflation rose 1 percent.

“Higher prices for cigarettes and tobacco, petrol, and fruit were partly offset by lower prices for international air transport, and package holidays,” added Attewell.

Prices for tobacco and cigarette upwardly contributed the most to inflation on a quarter-on-quarter basis, noted Statistics New Zealand.

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U.S. Stocks Mostly Lower as IBM, Oil Prices Weigh

Wall Street finished mostly lower, with IBM and oil prices weighing on the Dow Jones industrial average. Investors priced in the newest round of earnings and are also focused on France, with the country's presidential election drawing close.

The Dow Jones industrial average dropped 0.58 percent at 20,404.49, as IBM led losses while Merck outperformed. The S&P 500 slipped 0.17 percent at 2,338.17, with energy leading seven sectors down and healthcare being the top gainer. The Nasdaq composite added 0.23 percent at 5,863.03.

IBM plunged 4.9 percent to $161.69 following its larger-than-expected decline in revenue for the first time in five quarters. The energy sector tumbled 1.4 percent for its fifth slip in six sessions with oil prices settling almost four percent down.

Financials traded higher earlier in the session after Morgan Stanley reported a strong first-quarter as its fixed-income trading revenue doubled year over year. The lender's results climbed to the top of Wall Street expectations, in contrast to Goldman Sachs that surprised investors with weak earnings and revenue. Shares of Morgan Stanley climbed two percent.

Intuitive Surgical jumped 6.4 percent at $807.94 to help raise the Nasdaq after the firm posted higher-than-expected first-quarter revenue and profit. The stock is on course for its best day in almost two years.

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Fxwirepro: Eur/krw Rejects Key Resistance at 1,224 Mark, Consistent Close Below 1,217 Targets 1,201 Mark

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

Pair made intraday high at 1,220 and low at 1,216 levels. Intraday bias remains neutral till the time pair holds key support at 1,217 mark.

A daily close below 1,217 will drag the parity down towards key supports around 1,208, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.

Alternatively, a sustained close above 1,217 will take the parity higher towards key resistances around 1,224, 1,228, 1,233, 1,242 and 1,252marks respectively.

Seoul shares open up 0.56 pct at 2161.24.

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

We prefer to take short position in EUR/KRW only below 1,217, stop loss at 1,224 and target of 1,201.

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Chow Tai Fook Gains Australian Government Approval for $3 Billion Deal

Hong Kong conglomerate Chow Tai Fook Enterprises Ltd. has obtained the approval of the Australian government regarding its bid for gas and electricity firm Alinta Energy Ltd.

According to a spokeswoman for Treasurer Scott Morrison, the takeover was approved with strict conditions. The deal has been approved by the Foreign Investment Review Board and the treasury declined to comment further.

The buyout bid from Chow Tai Fook valued Alinta at nearly four billion Australian dollars (US$3.02 billion), a person familiar with the topic said. Both companies did not reveal financial terms on the deal.

Chow Tai Fook, which is widely-known for its jewelry business, is the biggest in the world by revenue. For the conglomerate, this deal marks its first significant investment in Australia's energy industry, granting the company control of a utility with nearly 800,000 electricity and gas customers as well as a generation portfolio of as much as 1,957 megawatts.

The Hong Kong conglomerate said it plans to maintain Alinta's current senior management team and aims to expand business through investment in the energy market. The deal is seen to close by the end of April.

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Wall Street Gains as Nasdaq Rises Above 6,000

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U.S. equities advanced sharply as strong quarterly reports from numerous big-cap firms followed through. The Nasdaq Composite reached a record peak, while the Dow and S&P 500 were also near recent highs as solid earnings highlighted the health of corporate America.

The Dow Jones industrial average climbed 1.12 percent at 20,996.12, as Caterpillar led gains while Verizon was the top decliner. The S&P 500 rose 0.61 percent at 2,388.61, as materials led nine sectors up while telecommunications and utilities lagged behind. The Nasdaq composite advanced 0.7 percent at 6,025.49.

Caterpillar jumped 7.7 percent at $104.29 after earlier notching a multi-year peak of $104.71 while Mcdonald's bounced 5.6 percent to $141.71, both after exceeding profit estimates.

According to Thomson Reuters, total profits of S&P 500 firms are estimated to have increased 11 percent during the first quarter, the most since 2011.

The Nasdaq scaled a record level of 6,036.02, breaking 6,000 for the first time, powered by advances in index heavyweights Apple and Microsoft. The S&P 500 notched its day's peak after a report that U.S. President Donald Trump's tax proposal will be expected on Wednesday.

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Wall Street Slips as Trump Unveils Tax Plan

U.S. equities retreated as investors priced in President Donald Trump's plan for tax reform, while earnings season carried on. The proposal from the Trump administration reduced tax rates for businesses and on overseas corporate profits returned to the country.

The Dow Jones industrial average slipped 0.1 percent at 20,975.09, as Procter & Gamble led losses while Verizon outperformed. The S&P 500 fell 0.05 percent at 2,387.45, with real estate leading seven sectors down and telecommunication the top gainer. The Nasdaq composite lost 0.27 points to end at 6,025.23.

The S&P 500 dropped marginally after wavering near an all-time peak. Expectations for lower corporate taxes have been an advantage for stocks ever since Trump was elected in November.

Retail stocks jumped on Trump's announcement, as it revealed that it did not include a border adjustment tax. The SPDR S&P Retail ETF (XRT) climbed one percent.

Among stocks, United Technologies climbed 1.1 percent to $118.20 and gave the largest lift to the Dow industrials after posting a quarterly profit that exceeded expectations supported by higher sales in all four of its business units. Shares of Boeing lost almost one percent to $181.71 after the planemaker posted a decline in revenue.

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Iraq Says to Trail Consensus at Next Month's OPEC Gathering

Iraq said it will simply go with the flow when OPEC convenes in Vienna this May to determine whether to prolong output accord, according to the country's oil chief.

Iraqi oil leader Jabar Ali al-Luaibi reiterated Thursday they are definitely going with the consensus reached by the oil cartel during their gathering.

He added the country is fully committed to the agreement as it has attained around 97% of its production target.

Luaibi also said the production cuts led by the organization were slowly leading to a much-anticipated rebalancing of the crude market.

The Iraqi official stressed the OPEC decision to c

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Anz New Zealand Job Ads rise Strongly in April, Suggests Ongoing Solid Employment Growth

The ANZ New Zealand job ads rose strongly in April on a seasonally adjusted basis. The job ads rose robustly by 2.8 percent, the strongest rise in five months. On a year-on-year basis, job ads were up 18.2 percent.

The ongoing high level of job ads shows a robust labor market. The rate of growth seems to be rising again following flattening off for a period. This is in line with the economy reaccelerating in the first quarter after moderate growth seen at the end of last year.

Auckland continues to be the strongest of the main centres on a year-on-year basis, with the seasonally adjusted monthly figure of job ads rising 3 percent to a fresh high. Wellington job ads growth was up 15 percent year-on-year, whereas Canterbury job ads rose to the highest level since mid-2015.

The regions continue to set the pace, noted ANZ. Except Taranaki, every region is seeing stronger annual job ad growth than any of the three main centres. However, the picture over the last few months is more mixed. The total job ads growth is being mainly driven by the construction, manufacturing, utilities and transport sector. The service sector is also adding strongly, along with retail and tourism.

“The data suggests ongoing strong employment growth, with the unemployment rate remaining under 5 percent this year. Lower unemployment will help propel wages higher”, added ANZ.

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Australia Performance Of Construction Index Climbs To 51.9 - AiG

The construction sector in Australia continued to expand in April, and at a faster rate, the latest survey from the Australian Industry Group revealed on Friday with a Performance of Construction Index score of 51.9.

That's up from 51.2 in March, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Among the actives, house building activity continued to expand in April, while apartment building turned back to expansion - but commercial construction continued to weaken.

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Wall Street Little Changed as Healthcare Bill Passed

U.S. equities were little changed as the sharp decline for the energy sector offset some strong earnings reports after the U.S. House of Representatives passed a health care overhaul.

The House voted to repeal major parts of the 2010 Affordable Care Act, also known as Obamacare, and replace it with the Republican healthcare, sending it to the Senate for consideration.

The Dow Jones industrial average dropped 0.03 percent at 20,951.47, as Caterpillar lagged behind while 3M outperformed. The S&P 500 added 0.06 percent at 2,389.52, as consumer staples led eight sectors up while energy underperformed. The Nasdaq Composite gained 0.05 percent at 6,075.34.

The healthcare sector traded higher for most of the session and was the second-best performer in the S&P. Regeneron jumped 6.7 percent while Zoetis advanced 5.9 percent after results.

The energy sector fell 1.9 percent and was the worst performing group. Exxon Mobil's 1.3 percent drop and Chevron's 1.8 percent tumble added pressure on the S&P.

Among shares active in corporate news, Tesla slipped five percent after the electric automaker's quarterly net loss expanded.

Earnings season continued, as social media heavyweight Facebook exceeded estimates for both profit and revenue,the same goes for Chesapeake Energy and Church & Dwight, among others. The season has mostly been above expectations which encouraged investors.

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French Election: How Much Pro-Eu Is Macron?

This year’s French election second round was similar to a referendum on the European Union. While the now defeated Front National candidate was the most prominent EU-skeptic, the independent candidate who just won with more than 65 percent of the votes is believed to be the most pro-EU candidate among the lot.

There were 11 candidates in this year’s French election. Three were EU-skeptic and the rest eight were pro-EU. So, how much pro-EU is Emmanuel Macron?

He is the candidate, who favors the European Union and wants further integration within the bloc to make the cementing stronger.

One of the biggest drawbacks of the European Union is that it is not a political union and Macron is one of the few who would like to remove that obstacle probably by giving up parts of the French sovereignty if others join in too.

He is an EU-optimist. While many remain skeptical towards the European Union in the current scenario, he believes that good days of the EU are ahead and he believes that the union could become even stronger under the right leadership.

The following instance would give the readers fair idea of his support towards the EU.

After it was clear that Emmanuel Macron is the winner of the election, he appeared in front of his supporters to the sound of the EU anthem Ode To Joy instead of the French instead of French National Anthem La Marseillaise.

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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

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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.

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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.

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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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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.

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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.

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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.

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Fairfax Media Acquires Revised $2.04 Billion Offer from TPG

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

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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.

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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.

Read more: https://www.instaforex.com/forex-new...rise_in_q.html
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Wall Street Mixed as Nasdaq Hits 3-Day Winning Streak

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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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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

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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

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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

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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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Gold Holds on to Gains, Supported by US Political Concerns

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Gold prices were steady on Tuesday in spite of the explosion at a concert in the English city of Manchester which killed nearly 19 people in what British police said was being treated as a terrorist incident.

The precious metal has been lifted as the dollar fell versus the euro amid political uncertainty in the United States due to the controversies surrounding President Donald Trump.

Spot gold rose 0.1 percent at $1,261.62 an ounce. U.S. gold futures were little changed at $1,261 per ounce. Spot gold gained 2.2 percent the previous week as the uproar on Trump's alleged links to Russia and his dismissal of former Federal Bureau of Investigation chief James Comey have raised doubts on his ability to push through pledged fiscal stimulus.

Holdings in SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, climbed 0.21 percent to 852.48 tonnes.

Investors' net long position in COMEX gold has dropped to a two month-low, according to data from the U.S. Commodity Futures Trading Commission (CFTC).

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New Zealand Has NZ$578 Million Trade Surplus

New Zealand saw a merchandise trade surplus of NZ$578 million in April, Statistics New Zealand said on Wednesday.

That beat forecasts for a surplus of NZ$267 million following the NZ$332 million surplus in March.

Exports climbed 9.8 percent on year to NZ$4.75 billion - also exceeding expectations for NZ$4.40 billion and up from NZ$4.65 billion in the previous month.

Imports gained an annual 4.9 percent to NZ$4.17 billion versus forecasts for NZ$4.10 billion and down from NZ$4.31 billion a month earlier.

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HP Inc. Lifts Profit Guidance as PC, Printer Units Outperform

HP Inc.'s sales strongly performed in the second quarter, posting growth in both PC and printer units for the first time in over five years.

The company also reported better-than-anticipated revenue on stronger consumer demand, prompting it to lift its annual profit projection. Shares of the firm climbed 3.6 percent to $19.7 in extended trading.

Revenue from the personal computer business surged 9.6 percent to $7.66 billion in the period ending April 30. The unit represents almost two-third of the firm's overall sales. The firm's printer and copier division also posted its first increase in revenue since 2011, driven partially by the strong demand for its handheld photo printer, HP Sprocket.

Total revenue jumped 6.9 percent to $12.4 billion during the second quarter, as strong consumer demand caused a 12 percent jump in laptop deliveries. Earnings before adjustments registered at 40 cents per share, marginally higher than the expected 39 cents per share.

The firm also lifted its projection for third-quarter profit that beat estimates and also raised its outlook for the entire fiscal year. Full-year adjusted profit is seen to clock in between a range of $1.59-$1.66 per share, exceeding average estimates of $1.62 per share.

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Gold Prices End Lower as Dollar Stabilizes

Gold Prices eased as the dollar pulled away from lows and steadied, while world stock markets reached fresh highs, reversing some gains from the prior session when U.S. Federal Reserve meeting minutes indicated it is more cautious on pulling the trigger on another rate hike.

Spot gold ended ended down 0.2 percent at $1, 255.91 per ounce, while U.S. gold futures ended up 0.3 percent at $1, 256 .50.

Economists anticipate the gold's resilience to fluctuate in the following weeks, citing hints in the Fed minutes that further monetary policy tightening is on the table as early as June.

Minutes of the May policy meeting showed policymakers generally agreed that they should postpone raising rates until it is sure that a recent U.S. economic slump is only transitory. Despite the cautious tone, majority of the rate-setting committee said a hike is coming soon.

Federal fund futures indicated traders are pricing in an 83 percent odds of a quarter percentage point rate hike during the Fed's june meeting.

Bets for U.S. interest rates to increase next month and possibly rise once more in the year have helped kept gold prices under $1,300.

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Lenovo Turns to Pricier Models to Stop Bleeding in its Smartphone Business

Chinese multinational technology firm Lenovo Group Ltd is currently relying on a push upmarket to stop the losses incurred in its smartphone business following its acquisition of Motorola three years ago.

The company announced that it will reorganize its China business which is aimed at sharpening the PC brand's consumer focus amid the effort to strengthen its mobile branding and also shift the focus to more expensive models under the Moto brand.

The group's smartphone concerns began after it acquired Motorola Mobility from Google for $2.9 billion back in 2014 but have since then struggled to integrate the assets. Although the company returned to profit in the year to March, the group's phone problems worsened as marketing expenses for new products and key components costs increased.

In its home base of China, Lenovo's shipments have domestically dropped 80 percent year-on-year or 55 percent quarter-on-quarter during the first three months of 2017, according to Canalys data.

However, shipments in Brazil climbed 56 percent in the first quarter of this year according to Lenovo, exceeding India as its largest market, where volumes rose 34 percent.

Chairman Yang Yuanqing said Lenovo is poised to reach its goal of turning around the mobile business by the second half of the fiscal year starting in April. He added that the company will also have three more telecom partners in the U.S. in 2017 as its performance in Western Europe continues to improve.

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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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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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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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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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