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China's growth will slow in 2019 and threatens the financial world
China's economy is expected to continue to slow down this year particularly on domestic demand and exports affected by US tariffs. Beijing will most likely have to deploy additional incentive measures.
According to forecasts, China's economic growth will slow to 6.3 percent this year and will be the weakest in 29 years. A significant slowdown in growth in China has already been observed. The resumption of negotiations between the United States and China has increased optimism that Washington may agree to suspend the planned tariff increase, which was originally scheduled to take effect this month. However, a comprehensive agreement to end the dispute seems unlikely, given the number of highly controversial and politically sensitive issues. Even if both sides can conclude a long-term trade deal, it will provide only minor relief to the Chinese economy if Beijing cannot increase domestic investment and demand.
Sources said that China plans to lower its target for economic growth between 6 to 6.5 percent this year. Weak industrial growth and lower consumer spending reduce company profits. Moreover, it also discourages new investment and increases the risk of high job losses. Since earlier growth measures had little impact, we expect Beijing to deploy more incentives in the coming months to prevent a sharp slowdown. More large-scale tax cuts are expected, along with measures to increase consumer demand for products such as household appliances and cars. Both fiscal and monetary policies eased over the past few months and this should begin to spread to the real economy by the second half of this year.
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IMF lowers global growth forecasts, what to expect financial markets
The International Monetary Fund has reduced its forecasts for global economic growth for 2019 and 2020 due to weakness in Europe and in some emerging markets, and said that trade tensions could destabilize the world economy even more. This is the second decline in three months. The lender also called a more serious than expected slowdown in the Chinese economy and the possible "problem" Brexit risks that could cause turbulence in financial markets. The IMF expects the growth of the world economy in 2019 to be 3.5 percent, and in 2020, 3.6 percent, which is lower by 0.2 and 0.1 percent, respectively, from forecasts in October last year.
"The trend of global growth is shifting downward. Escalating trade tensions beyond that already included in the forecast remains a key source of risk. Trade policy uncertainties and concerns about escalation and retaliation will lead to a decrease in industrial investment, disruption of supply chains and a slowdown in productivity growth. As a result, worsening corporate profitability prospects may affect financial market sentiment and further weaken economic growth," the IMF said in a statement.
The IMF said that growth in the eurozone will be moderate, falling from 1.8 percent in 2018 to 1.6 percent in 2019, which is 0.3 percentage points lower than predicted three months ago. The IMF also lowered its growth forecast in 2019 for developing countries to 4.5 percent, which is 0.2 percentage points lower than the previous forecast and 4.7 percent in 2018. But it kept its growth forecasts for the USA, 2.5 percent this year and 1.8 percent in 2020, indicating continued growth in domestic demand.
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ECB press conference: Highlights of Draghi's comments
The ECB has left its policy unchanged. We give the main comments of the ECB President Mario Draghi at a press conference.
Evaluation but not a policy discussion
"We didn't have to discuss the consequences of the risk balance. Today's meeting was mainly devoted to an assessment: where are we and why are we here, how long will the slowdown take place, will the slowdown worsen or will a lower level wait for us These are the questions that have been asked ".
Muffled inflation:
"General inflation is likely to continue to decline in the coming months. Core inflation remains generally subdued, but pressure on labor costs continues to increase and expand amid a high level of capacity utilization and toughening labor markets."
Mid-term inflation:
"Looking into the future, we expect core inflation to grow in the medium term, with the support of our monetary policy measures, continued economic growth, and rising wage growth."
The economic growth:
"The short-term growth momentum is likely to be weaker than previously thought. In the future, growth in the eurozone economy will continue to be supported by favorable financial conditions, further growth in employment and wages, lower energy prices and continued, albeit somewhat slower, expansion of global activity."
Stimulation:
"Significant monetary policy incentives remain necessary to support further increases in domestic price pressure and overall inflation in the medium term. The Board of Governors is ready to use all of its tools, depending on the situation, in order to ensure a constant movement of inflation towards the goal. "
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S & P: The US economy has lost at least $ 6 billion due to the shutter
Analysts at rating agency Standard & Poor's estimate that the US economy lost at least $ 6 billion during the suspension of government work.
S & P Global Rating experts believe that as a result of the shutdown, the US budget lost $ 1.2 billion a week since the suspension of government departments led to a decrease in productivity and a low level of business economic activity.
The shutdown was caused by the reluctance of the US Congress to allocate $ 5.7 billion for primary funding for the construction of a wall between Mexico and the US, while negative consequences, according to S & P experts, have already exceeded the amount requested by President Donald Trump.
Analysts also noted that, despite the resumption of government agencies, the negative effect of the shutdown is likely to affect financial markets and business confidence in the future of the country's economy.
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China's manufacturing sector alarms currency markets
China's manufacturing sector activity in January was likely to shrink for the second month in a row, heightening concerns about the risks associated with a slowdown in China and a threat to the global economy.
Industrial leader Caterpillar has become another major international company that warned of declining demand in China, followed by chip makers and Apple. According to the average forecast of 33 economists, the official index of purchasing managers in China (PMI) in January will drop to 49.3 points from 49.4 points in December. January figures may be the weakest since February 2016. In addition, in front of the big New Year holidays and many businesses just close. Some are closing even earlier than usual, because the protracted trade war with the United States has a negative effect on orders. If Washington and Beijing do not reach a compromise that will ease the pressure on tariffs, many businesses are likely to close down forever.
In any case, weak PMI data increases the likelihood that Beijing can accelerate and intensify policy mitigation and stimulation efforts this year. Nevertheless, there remains a high probability that in the coming months business conditions in China may deteriorate, growth may fall below 6 percent in the first half of the year from 6.4 percent in the fourth quarter and stabilize only at the end of the year. This is confirmed by sources in the government, who report that the authorities are planning to reduce the growth target to 6-6.5 percent this year from 6.5 percent in 2018.
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The pound will continue to try to gain a foothold, and the dollar is waiting for the Fed report
The pound will continue to attempt to strengthen its position after fears of the "problematic" Brexit have declined, and the dollar will weaken on the eve of the Fed meeting.
Last week, the pound reached $ 1.3218, the highest since mid-October, in the hope that London will be able to make a deal with the EU. The deadline set for Brexit, March 29, is likely to be extended, and the main question for the pound is when and how the renewal decision will be made. As for the dollar, the focus is now shifting back to key events that threaten the dollar with more serious consequences, such as the FOMC (Federal Open Market Committee) meeting, US-China trade negotiations, and the US jobs report. The Fed is expected to leave interest rates unchanged.
Markets are waiting for signals about the future of the Fed's policy after recent official comments made it clear that rates of rate hikes this year will be reduced amid growing uncertainty about the state of the US economy, the global economy and fragile financial markets. Experts estimate the likelihood of a rate hike in 2019 as very low, although some still expect two approaches in the second and fourth quarters. The dollar may face pressure if the Fed decides to highlight the negative effects of the closure of the US government in its report.
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Oil trades in different directions on conflicting factors
The price of Brent crude is showing mixed trends at the beginning of a new trading week. Quotes of the asset vary over a wide range of $61.30-62.30 per barrel. Market participants regain data on the growth in the number of drilling rigs in the United States and follow the news on trade negotiations between the United States and China.
Markets are awaiting the outcome of trade negotiations between Washington and Beijing, the next round of which is scheduled for February 14-15. Doubts that trade disputes will finally be resolved put pressure on the course of oil. An additional negative came from the report of oil and gas service company Baker Hughes, which reflected an increase in the number of active drilling rigs by 7– to 854 units.
At the same time, oil received some support following the words of OPEC President and the Minister of Energy of the United Arab Emirates (UAE) Suhail Al-Mazrui that the oil market will be balanced in the first quarter of this year.
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Euro Rises Following German GDP Data
Destatis has published German preliminary GDP data for the fourth quarter and wholesale price index for January at 2:00 am ET Thursday.
After these data, the euro rose against its major rivals.
The euro was trading at 125.39 against the yen, 1.1381 against the franc, 1.1294 against the greenback and 0.8768 against the pound around 2:01 am ET.
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China CPI Slows To 1.7% On Year In January
Consumer prices in China were up 1.7 percent on year in January, the National Bureau of Statistics said on Friday.
That was shy of expectations for an increase of 1.9 percent, which would have been unchanged from the December reading.
On a monthly basis, consumer prices were up 0.5 percent following the flat reading in December.
Producer prices were up 0.1 percent on year, shy of expectations for an increase of 0.5 percent and down from 0.9 percent in the previous month.
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U.S. Dollar Falls On Trade Talk Hopes
The U.S. dollar depreciated against its most major counterparts in the Asian session on Monday, as investors awaited trade talks between the U.S. and China beginning this week, after making some progress in talks held last week.
A statement from the White House said high level U.S.-China trade talks this week led to "progress between the two parties", but noted "much work remains."
Trump said that the meetings were very productive and he is ready to extend the March 1 deadline and hold off a planned tariff hike on Chinese goods.
Minutes from the Federal Reserve's last policy meeting are due on Wednesday, with investors awaiting more clues on its rate hike path for this year.
The greenback declined to a 5-day low of 1.2920 against the pound, down from a 5-day high of 1.2899 hit at 5:45 pm ET. The greenback is seen finding support around the 1.32 level.
The greenback slipped to a weekly low of 1.0029 against the franc, following a high of 1.0055 seen at 5:15 pm ET. The next likely support for the greenback is seen around the 0.99 level.
Pulling away from an early high of 1.1289 against the euro, the greenback fell to a 5-day low of 1.1325. On the downside, 1.15 is possibly seen as the next support level for the greenback.
The greenback dropped to a 5-day low of 1.3225 against the loonie, near 2-week lows of 0.6893 against the kiwi and 0.7159 against the aussie, from its early highs of 1.3255, 0.6855 and 0.7133, respectively. The greenback is poised to challenge support around 1.29 against the loonie, 0.70 against the kiwi and 0.74 against the aussie.
On the flip side, the greenback held steady against the yen, after having advanced to 110.58 at 6:55 pm ET. The pair was valued at 110.46 at Friday's close.
Data from the Cabinet Office showed that Japan core machine orders fell 0.1 percent on month in December - beating expectations for a decline of 1.0 percent following the flat reading in November.
On a yearly basis, core machine orders were up 0.9 percent - shy of forecasts for an increase of 3.4 percent following the 0.8 percent increase in the previous month.
The U.S. markets remain closed for Presidents Day holiday.
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EUR/USD: real weakness of the greenback or vain hopes for progress in the negotiations?
In recent weeks, the greenback has shown quite an impressive rally. However, an ambiguous statistical data from the United States, and then positive news about the trade negotiations between Washington and Beijing, then forced it to switch to defense mode against most of the currencies from the G10.
Against the background of improving global risk appetite, the EUR/USD pair fell to the bottom of the level of 1.1250, recovered above the level of 1.1300 and today is trying to gain a foothold above this mark.
Last week, the dollar received the main blow from the internal statistics, which turned out to be significantly worse than the forecast values. In particular, in December, retail sales in the United States declined at the fastest rate in almost a decade, which has led to renewed talk about preparing for a slowdown in the US economy and the best times for the greenback are over.
It is assumed that this week a weak report on retail sales will continue to put pressure on the dollar, especially since the minutes of the Fed's January meeting, which will be published this Wednesday, are likely to confirm the regulator's intention to maintain a wait-and-see position in March.
At the same time, the main negative factor for the single European currency is the fact that the ECB and the European Commission have recently revised downward forecasts for GDP growth and inflation in the region, which in turn postpones the ECB interest rate hike to a later date. In addition, there is still tension on the political scene: the UK's uncontrolled exit from the EU is still on the agenda. Investors are not optimistic about the possibility of introducing trade duties on European cars from the United States.
Currently, positive market expectations regarding the course of trade negotiations between the US and China are the main factor supporting the euro.
Last Saturday, US President Donald Trump announced significant progress in this direction.
It should be noted that previously something similar could already be observed. One can only hope that the White House's comments on the "good pace" of the talks (which, by the way, only two weeks are left) are a sign of a real breakthrough, not false promises.
Thus, to some extent, the further growth of the EUR/USD pair will depend on whether the parties enter into a trade agreement or the United States will extend the deadline for signing it.
However, according to experts, the "bulls" on the euro are not particularly counting on anything, since only a breakthrough above the mark of 1.15 will be a sign of upward dynamics.
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Australia Wage Prices Gain 0.5% On Quarter In Q4
Wage prices in Australia were up a seasonally adjusted 0.5 percent on quarter in the fourth quarter of 2018, the Australian Bureau of Statistics said on Wednesday.
That was shy of expectations for an increase of 0.6 percent, which would have been unchanged.
On a yearly basis, wage prices advanced 2.3 percent - unchanged and matching forecasts.
Private sector wages were up 0.6 percent on quarter and 2.3 percent on year, while public sector wages rose 0.6 percent on quarter and 2.5 percent on year.
The highest index rise at an industry level was in financial and insurance services (0.9 percent) and the lowest in accommodation and food services (0.1 percent).
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Australia Unemployment Rate Unchanged At 5.0% In January
The jobless rate in Australia was a seasonally adjusted 5.0 percent in January, the Australian Bureau of Statistics said on Thursday - unchanged and in line with expectations.
The Australian economy added 31,900 jobs last month - blowing away forecasts for an increase of 15,000 jobs following the gain of 16,900 jobs in December.
Full-time employed persons increased 65,400 to 8,743,100 and part-time employed persons decreased 26,300 to 4,008,700.
Unemployed persons increased 6,600 to 673,500.
The seasonally adjusted underemployment rate fell 0.2 pts to 8.1 percent, while the monthly underutilization rate fell 0.1 pts to 13.2 percent.
The participation rate was 65.7 percent, exceeding expectations for 65.6 percent - which would have been unchanged from the previous month.
Monthly hours worked in all jobs increased 6.6 million hours to 1766.4 million hours.
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Euro Mixed Ahead Of German GDP Data
At 2:00 am ET Friday, Destatis will release German final GDP data for the fourth quarter. Ahead of the data, the euro traded mixed against its major counterparts. While the euro rose against the greenback and the yen, it held steady against the franc and the pound.
The euro was worth 125.64 against the yen, 1.1351 against the franc, 0.8698 against the pound and 1.1341 against the greenback as of 1:55 am ET.
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China Manufacturing PMI Slides To 49.2 In February
The manufacturing sector in China continued to contract in February, and at a faster rate, the latest survey from the National Bureau of Statistics revealed on Thursday with a manufacturing PMI score of 49.2.
That missed expectations for a score of 49.5, which would have been unchanged from the previous month. It also moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
The bureau also said that its non-manufacturing PMI came in with a score of 54.3 in February - again shy of expectations for 54.5 and down from 54.7 in the previous month.
The composite index posted a score of 52.4, down from 53.2 a month earlier.
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Philippines Manufacturing Sector Slows In February - Nikkei
The manufacturing sector in the Philippines continued to expand in February, albeit at a slower rate, the latest survey from Nikkei revealed on Friday with a manufacturing PMI score of 51.9.
That's down from 52.3 in January, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, new order growth was at its weakest in seven months but export orders rose for the first time since August.
Output and employment both increased at manufacturers, although stocks of finished goods fell for the first time in eight months during February.
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Australia January Building Approvals Advance 2.5%
The total number of building approvals consented in Australia climbed a seasonally adjusted 2.5 percent on month in January, the Australian Bureau of Statistics said on Monday - standing at 14,395.
That exceeded expectations for a gain of 1.5 percent following the 8.4 percent slide in December.
On a yearly basis, approvals plummeted 28.6 percent - which actually beat forecasts for a fall of 28.9 percent following the 22.5 percent drop in the previous month.
The number of consents issued for private sector houses was up 2.1 percent on month and down 6.6 percent on year at 9,423. The number of private sector dwellings excluding houses was up 2.7 percent on month and down 51.0 percent on year at 4,800.
The seasonally adjusted estimate of the value of total building approved rose 1.3 percent in January. The value of residential building fell 2.0 percent, while the value of non-residential building rose 6.4 percent.
Also on Monday, the ABS said that company operating profits in Australia were up a seasonally adjusted 0.8 percent on quarter in the fourth quarter of 2018.
That was well shy of expectations for a gain of 3.0 percent following the 1.9 percent increase in the three months prior. They were up 10.5 percent on year. Inventories fell 0.2 percent on quarter, missing forecasts for a gain of 0.3 percent following the 0.1 percent drop in Q3. They were up 1.0 percent on year. Wages and salaries were up 0.8 percent on quarter and 4.1 percent on year.
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Australia Has A$7.2 Billion Current Account Deficit In Q4
Australia had a seasonally adjusted current account deficit of A$7.2 billion in the fourth quarter of 2018, the Australian Bureau of Statistics said on Tuesday.
That exceeded expectations for a shortfall of A$9.1 billion following the A$10.7 billion deficit in the three months prior.
The surplus on goods and services fell A$781 million from A$2.022 billion in the third quarter to A$1.241 billion in the fourth quarter.
Net exports of gross domestic product fell 0.2 percent versus expectations for a fall of 0.1 percent following the 0.4 percent gain in Q3.
Australia's net IIP liability position was A$975.7 billion at 31 December 2018, an increase of A$36.5 billion on the revised 30 September 2018 position of A$939.1 billion.
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Australia Q4 GDP Advances 0.2% On Quarter
Australia's gross domestic product added a seasonally adjusted 0.2 percent on quarter in the fourth quarter of 2018, the Australian Bureau of Statistics said on Wednesday.
That was shy of expectations for an increase of 0.5 percent following the 0.3 percent gain in the three months prior.
On an annualized basis, GSP was up 2.3 percent - again missing forecasts for 2.6 percent and down from 2.8 percent in the previous quarter.
"Growth in the economy was subdued, reflecting soft household spending and a decline in dwelling investment," ABS Chief Economist Bruce Hockman said. "The approvals for dwelling construction indicate that the decline in dwelling investment will continue."
Household spending grew 0.4 percent, reflecting a continuation of modest spending in recent quarters. Investment in dwellings fell 3.4 percent.
Falls in private investment dampened growth in the quarter. This was consistent with the decline in construction industry value added, falling 1.9 percent. Services industries supporting construction activity detracted from growth with professional scientific and technical services industry value added declining for the first time in three years.
Mining investment fell in the quarter as significant projects transitioned from the construction to the production phase. This is reflected in oil and gas production, which grew 7.7 percent.
Public demand sustained growth in the quarter. Public investment remained at high levels with State and Local government growth of 6.3 per cent reflecting continued work on a number of large infrastructure projects.
Government final consumption expenditure grew 1.8 percent, with ongoing expenditure in health, aged care and disability services. This investment translates to ongoing strength from the healthcare industry, which remains the largest contributor to economic growth.
Terms of trade rose 3.1 percent.
"As the economy transitions out of the mining boom, investment has remained strong with major public works driving growth around Australia," Hockman said.
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Australia House Price Index Sinks 2.4% In Q4
House prices in Australia were down 2.4 percent on quarter in the fourth quarter of 2018, the Australian Bureau of Statistics said on Tuesday - coming in at A$6.677 trillion.
That missed expectations for a fall of 2.0 percent following the 1.5 percent decline in the three months prior.
The capital city residential property price indexes fell in Sydney (-3.7 percent), Melbourne (-2.4 percent), Brisbane (-1.1 percent), Perth (-1.0 percent), Canberra (-0.2 percent) and Darwin (-0.6 percent) and rose in Hobart (+0.7 percent) and Adelaide (+0.1 percent) on a quarterly basis.
On a yearly basis, house prices sank 5.1 percent - again missing forecasts for a drop of 5.0 percent following the 1.9 percent contraction in the previous three months.
Annually, residential property prices fell in Sydney (-7.8 percent), Melbourne (-6.4 percent), Darwin (-3.5 percent), Perth (-2.5 percent) and Brisbane (-0.3 percent) and rose in Hobart (+9.6 percent), Canberra (+1.8 percent) and Adelaide (+1.5 percent).
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Euro Mixed Ahead Of German PPI
Destatis will release German producer prices for February at 3:00 am ET Wednesday.
Ahead of the data, the euro traded mixed against its major counterparts. While the euro held steady against the greenback and the yen, it rose against the pound. Against the franc, it fell.
The euro was worth 126.61 against the yen, 1.1342 against the franc, 0.8560 against the pound and 1.1347 against the greenback as of 2:55 am ET.
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Australia Jobless Rate Sinks To 4.9% In February
The unemployment rate in Australia came in at a seasonally adjusted 4.9 percent in February, the Australian Bureau of Statistics said on Thursday - beneath expectations for 5.0 percent, which would have been unchanged from the January reading.
The Australian economy added 4,600 jobs in February, shy of forecasts for the addition of 15,000 jobs following the gain of 38,300 jobs in the previous month.
The participation rate was 65.6 percent, below expectations for 65.7 - which would have been unchanged from a month prior.
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Japan Manufacturing PMI Unchanged At 48.9 In March - Nikkei
The manufacturing sector in Japan continued to contract at a steady pace, the latest survey from Nikkei revealed on Friday with a manufacturing PMI score of 48.9.
That's unchanged from the February reading and it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, there were further production cutbacks amid weaker new order inflows, while business confidence remained below the long-term average.
"Further struggles for Japanese manufacturers were apparent at the end of Q1, with latest flash PMI data showing a sustained downturn. Slack demand from domestic and international markets prompted the sharpest cutback in output volumes for almost three years," said IHS Economist Joe Hayes.
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The yen got wings, next stop $ 108.5
The fall of the yield curve below zero for the first time since 2007 stirred up the financial markets. The indicator, showing the difference between 10 and 3-year treasuries, is a reliable harbinger of a recession with a time lag of 12-18 months. Its inversion pushed players to active sales of shares. The losses of the S & P 500 amounted to 1.5%, and two new topics appeared on the market, fueling traders' interest in protective assets, such as the yen.
The sharp change in the rate of the Federal Reserve at the beginning of the year contributed to the rapid rally of US stock indices. The stock market prepared to close the quarter with the best result in nearly 30 years. However, it looks unnatural when macroeconomic statistics deteriorate and stocks rise. The growth of the US economy in the first quarter, will slowdown to less than 1% according to estimates of the leading indicator from the Atlanta Fed. hus, Morgan Stanley suspects that October-December GDP may be adjusted from 2.6% to 1.8% in quarterly terms. Divergence between economic reports and stock indicators cannot last forever.
The situation is similar throughout the world. Thus, the index of purchasing managers in the manufacturing sector of China, Japan, and the eurozone is below the critical level - 50, which indicates a slowdown in global GDP growth. Meanwhile, European stocks are ahead of their American counterparts, and the global MSCI is increasing. The naked eye can see that the market is overheated, which means it's time to pay attention to the safe haven assets. A 1.5% increase in the Japanese yen last week is a further evidence of this.
The national currency of Japan was under the "press" for quite some time. Its growth was hindered by such factors as high risk appetite, low rates of the world debt market and volatility. Inversion of the US yield curve provoked carry-traders to close positions, increased demand for funding currencies, and also caused the USDJPY rate to depreciate.
Among the most obvious fears of the market is the excessively "soft" position of the Fed. There was a too sharp change of tone. In December, the regulator allowed three series of rate increases, and now it does not plan any policy tightening. Perhaps, officials of the regulator do not agree on something, for example, a speedy recession. That is why the yield curve and went into the red zone.
Safe haven assets, as well as the yen, will be supported by the growing risks of the subsequent correction of the S & P 500 and increased volatility. The situation is heightened by rumors about Theresa May's resignation and the possible escalation of trade conflicts. Thus, the USDJPY pair may well move to the level of $ 108.5.
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Japan Retail Sales Add 0.2% In February
Retail sales in Japan were up a seasonally adjusted 0.2 percent on month in February, the Ministry of Economy, Trade and Industry said on Friday.
That missed expectations for an increase of 1.0 percent following the 1.8 percent decline in January.
On a yearly basis, retail sales advanced 0.4 percent - again missing expectations for 1.0 percent and down from 0.6 percent in the previous month.
Sales from large retailers tumbled an annual 1.8 percent, missing forecasts for a fall of 1.3 percent following the 3.3 percent slide a month earlier.
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EUR/CAD approaching resistance, potential drop!
EURCAD is approaching our first resistance at 1.5033 (horizontal overlap resistance, 61.8% Fibonacci extension , 23.6% Fibonacci retracement ) where a strong drop might occur to our major resistance at support at 1.4925 (horizontal swing low support). RSI (34) is also approaching resistance and ichimoku cloud is also showing signs of bearish pressure. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.
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Australia Building Approvals Surge 19.1% In February
The total number of building approvals in Australia jumped a seasonally adjusted 19.1 percent on month in February, the Australian Bureau of Statistics said on Tuesday - coming in at 17,074.
That was way above forecasts for a fall of 1.8 percent following the 2.5 percent gain in January.
On a yearly basis, building approvals sank 12.5 percent - but that also beat expectations for a fall of 27.0 percent after tumbling 28.6 percent in the previous month.
The seasonally adjusted estimate for private sector houses fell 3.6 percent in February, while private sector dwellings excluding houses surged 64.6 percent. The value of total building approved rose 15.4 percent in February.
The value of residential building rose 24.7 percent, while the value of non-residential building rose 2.1 percent.
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Euro Mixed Ahead Of German Industrial Production
Destatis will publish German industrial production for February at 2:00 am ET Friday. Ahead of the data, the euro traded mixed against its major counterparts. While the euro fell against the yen, it held steady against the rest of major counterparts.
The euro was worth 125.39 against the yen, 1.1227 against the franc, 0.8564 against the pound and 1.1229 against the greenback as of 1:55 am ET.
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Japan Has Y2,676.8 Billion Current Account Surplus
Japan had current account surplus of 2,676.8 billion yen in February, the Ministry of Finance said on Monday.
That exceeded expectations for a surplus of 2,633.5 billion yen following the 600.4 billion yen surplus in January.
Exports were down 1.9 percent on year to 6,307.0 billion yen, while imports skidded an annual 6.6 percent to 5,817.8 billion yen.
The trade surplus came in at 489.2 billion yen, shy of expectations for 591.3 billion yen but up from the 964.8 billion yen deficit in the previous month.
The adjusted current account showed a surplus of 1,957.6 billion, beating forecasts for 1,920.9 billion yen and up from 1,833.0 billion yen a month earlier.
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This April is going to be idle again for the pound
For the second year in a row, the British currency is missing the once-solid seasonal April rally associated with dividend flows. Blame it on the long-suffering Brexit and the risk of participating in European elections. Earlier for more than a decade, the sterling rose in price against the dollar every April. It was a kind of tradition.
The reasons for the pound's growth at this time of year were simple. Local companies repatriated "home" dividends. Most firms are transnational. Not surprisingly, after receiving dividends abroad, they converted them to pounds. This model was absolutely workable and even withstood a powerful shock in the form of the 2008 crisis.
While the pound rose 0.4% in tandem with the US dollar since the end of March, over the past 13 years to 2017, the average sterling grew by 2.3% in April. Last April, the pound approached the peak after the 2016 Brexit, when a referendum was held before turning down. As a result, the GBPUSD pair ended April with a fall of 1.8%.
London has achieved the extension of the country's exit date from the European Union, market concerns about the chaotic "divorce" process have decreased, but this does not mean that the worst is over. Now investors will have to face political risks, such as the upcoming local elections in the UK, and the Brexit deadlock is only delayed. Alarming moods are likely to return and would put even more pressure on the pound. In late April, the British currency may start a new wave of decline.
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Japan Retail Sales Add 0.2% On Month In March
Retail sales in Japan were up a seasonally adjusted 0.2 percent on month in March, the Ministry of Economy, Trade and Industry said on Friday.
That beat expectations for a flat reading and was down from the 0.4 percent increase in February.
On a yearly basis, retail sales climbed 1.0 percent - also beating forecasts for a gain of 0.8 percent and up from 0.6 percent in the previous month.
Large retailer sales were up an annual 0.6 percent, beating forecasts for a drop of 1.8 percent - which would have been unchanged.
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Finland Consumer Confidence Slows In April
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Finland's consumer confidence slowed in April after rising in the previous month, survey data from Statistics Finland showed on Monday.
The consumer confidence index rose to 15.7 from 16.1 in March. The reading remained above its long-term average of 12.7.
The survey was conducted among 1,143 persons in Finland between April 1 and 17.
Among the four sub-indexes, only consumers' expectations concerning Finland's economy improved slightly in April. Households' personal finance expectations eased, while they were less pessimistic regarding the situation in Finland's economy.
Elsewhere, survey data from the Confederation of Finnish Industries showed that the manufacturing confidence index dropped to -1 in April from 1 in March.
Morale deteriorated in construction, while it improved in services and retail trade.
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South Korea Industrial Production Gains 1.4% On Month In March
Industrial output in South Korea climbed a seasonally adjusted 1.4 percent on month in March, Statistics Korea said on Tuesday - rebounding from the 3.4 percent contraction in February.
On a yearly basis, industrial was down 2.8 percent following the 3.4 percent annual slide in the previous month.
The index of all industry production was up 1.1 percent on month and down 0.7 percent on year. In February, the index was down 2.6 percent on month and 1.9 percent on year.
The Manufacturing Production Index increased 1.5 percent on month but fell 2.9 percent on year. The Manufacturing Shipment Index gained 2.5 percent on month but fell 1.5 percent on year. The Manufacturing Inventory Index shed 0.6 percent on month but climbed 4.6 percent on year.
The Production Capacity Index added 0.2 percent on month but fell 0.5 percent on year. The Index of Capacity Utilization Rate climbed 1.4 percent on month but lost 2.5 percent on year.
The Manufacturing Average Capacity Utilization Rate in March marked 71.5 percent, which increased by 1.0 percentage points from the previous month. The Index of Services added 0.2 percent from the previous month and 0.6 percent on year.
The Retail Sales Index jumped 3.3 percent on month and 2.4 percent on year. The Equipment Investment Index jumped 10.0 percent on month but tumbled 15.5 percent on year.
The Domestic Machinery Shipment Index in March dropped 15.2 percent on year. The value of Domestic Machinery Orders Received fell 6.7 percent on year.
The value of construction completed at constant prices increased 8.9 percent on month but lost 2.9 percent on year. The value of construction orders received at current prices surged 18.7 percent on year.
The Composite Coincident Index in March added 0.1 percent from the previous month. The Cyclical Component of Composite Coincident Index, which reflects current economic situations, eased 0.1 points from the previous month.
The Composite Leading Index in March gained 0.2 percent on month. The Cyclical Component of Composite Leading Index, which predicts the turning point in business cycle, eased 0.1 points on month.
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U.S. Wholesale Inventories Unexpectedly Edge Lower In March
A report released by the Commerce Department on Thursday unexpectedly showed a modest decrease in U.S. wholesale inventories in the month of March.
The Commerce Department said wholesale inventories edged down by 0.1 percent in March after climbing by an upwardly revised 0.4 percent in February. Economists had expected inventories to come in unchanged.
The slight drop in wholesale inventories came as inventories of non-durable goods slid by 0.6 percent amid a sharp pullback in inventories of drugs.
On the other hand, the report said inventories of durable goods rose by 0.3 percent, reflecting notable increases in inventories of machinery and metals.
The Commerce Department also said wholesale sales surged up by 2.3 percent in March after rising by 0.3 percent in February.
Sales of durable goods jumped by 1.4 percent amid sharp increases in sales of electrical equipment and miscellaneous durable goods.
A spike in sales of petroleum products also contributed to a 3.1 percent leap in sales of non-durable goods.
With inventories falling and sales soaring, the inventories/sales ratio for merchant wholesalers dropped to 1.32 in March from 1.35 in February.
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Japan Has 2,847.9 Billion Current Account Surp
Japan posted a current account surplus of 2,847.9 billion yen in March, the Ministry of Finance said on Tuesday - down 10.6 percent on year.
That missed forecasts for a surplus of 3,007.2 billion but was still up from 2,676.8 billion in February.
The trade balance showed a surplus of 700.1 billion yen, also missing expectations for 838.9 billion yen and up from 489.2 billion yen in the previous month.
Exports fell 5.2 percent on year to 7.058 trillion yen, while imports added an annual 1.5 percent to 6.358 trillion yen.
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China's Industrial Output Growth Slows
China's industrial production and retail sales growth eased in April, figures from the National Bureau of Statistics showed Wednesday.
Industrial production advanced 5.4 percent year-on-year in April, following March's 8.5 percent increase. The growth rate was forecast to slow moderately to 6.5 percent.
Likewise, annual growth in retail sales eased to 7.2 percent from 8.7 percent a month ago. Sales were forecast to expand 8.6 percent.
Data showed that fixed asset investment climbed 6.1 percent during January to April period compared to the 6.3 percent expansion logged in January to March period. Economists had forecast 6.4 percent growth.
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Australia Jobless Rate Rises To 5.2% In April
The unemployment rate in Australia came in at a seasonally adjusted 5.2 percent in April, the Australian Bureau of Statistics said on Thursday.
That was above forecasts for 5.0 percent and up from the upwardly revised 5.1 percent in March (originally 5.0 percent).
The Australian economy added 28,400 jobs last month - exceeding expectations for an increase of 15,000 following the gain of 25,700 a month earlier.
The participation rate ticked up to 65.8 percent, beating forecasts for 65.7 percent - which would have been unchanged from the previous month.
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New Zealand Performance Of Service Index Slows In April
The services sector in New Zealand continued to expand in April, albeit at a slower pace, the latest survey from BusinessNZ revealed on Monday with a Performance of Services Index score of 51.8.
That's down from 52.3 in March, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
The April reading was the third straight monthly decline and the lowest index reading since September 2012.
Individually, sales, supplier deliveries and new orders expanded, while stocks and employment were in contraction.
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Singapore Lowers 2019 Growth Outlook
Singapore's economic growth outlook for this year was lowered as the manufacturing sector is set to log a sharp slowdown on weak global demand.
The city-state economy is forecast to grow 1.5 to 2.5 percent in 2019 compared to previous projection of 1.5 to 3.5 percent, the Ministry of Trade and Industry said Tuesday.
The ministry said the global growth outlook remains clouded by uncertainties and downside risks. The manufacturing sector is expected to face strong headwinds on account of a sharper-than-expected downturn in the global electronics cycle, as well as uncertainties arising from the ongoing trade conflicts.
Elsewhere, Enterprise Singapore maintained its total trade growth projection for 2019 at 0 to 2 percent, while non-oil domestic exports growth forecast was downgraded to -2 to 0 percent.
In the first quarter, gross domestic product climbed 1.2 percent year-on-year, following the 1.3 percent expansion seen in the previous quarter, the MTI reported. Meanwhile, on a quarter-on-quarter seasonally-adjusted annualized basis, the economy expanded 3.8 percent, a reversal from the 0.8 percent contraction in the preceding quarter.
The manufacturing sector shrank 0.5 percent as global demand for semiconductor equipment weakened. On the other hand, construction expanded 2.9 percent, a turnaround from the 1.2 percent decline in the previous three months.
The wholesale and retail trade sector shrank 1.8 percent, while the transportation and storage sector posted 0.8 percent growth. The accommodation & food services sector grew 1.8 percent.
Data showed that the information and communications sector expanded by 6.6 percent and the finance & insurance sector by 3.2 percent. Growth in the business services sector eased to 2.3 percent. The "other services industries" grew at a faster pace of 2.2 percent.
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Japan Supermarket Sales Decline In April
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Japan's supermarket sales declined in April, data from the Chain Store Association showed Wednesday.
Supermarket sales dropped 1 percent year-on-year in April, reversing a 0.5 percent rise in March.
The annual drop was largely driven by clothing sales, which fell 7 percent. Meanwhile, services and household goods sales expanded from last year.
Before adjustment, sales grew 0.2 percent but slower than the 2 percent increase seen a month ago.
On a monthly basis, supermarket sales declined 1.6 percent in April.