Forex News from InstaForex

**InstaForex Gertrude** · 21-02-17, 05:10

Toshiba Eyes $8.8 Billion in Chip Unit Stake Deal

Toshiba Corp. is seeking to gain a minimum of 1 trillion yen or $8.8 billion from the sale of a majority share in its memory chip business and will attempt to finish the deal by March 2018, according to sources.

The sale comes as the Japanese conglomerate issued a warning of a $6.3 billion writedown that will hit its U.S. nuclear business earlier this month. As it looks for a buffer against any fresh financial setbacks, Toshiba states it is now ready to put up for sale a majority stake or even all of the NAND memory unit.

The deal is seen to result in Toshiba ceding is majority hold over the unit which could have a market valuation as high as 2 trillion yen. Sources said the company wants to carefully consider its options and negotiate the best price before mapping a final timetable, although it is aiming to reach a deal before the end of the next financial year.

The company has not yet finalized the size of the stake to be put up for sale and is centering its focus on the total amount that can be raised. The person privy to the matter added that Toshiba would like to maintaining a one-third holding that would allow it a certain position of control over the business.

Toshiba's shares were up 2% in morning trade.

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**InstaForex Gertrude** · 23-02-17, 05:02

Dollar Recovers After Initial Fed Minutes Jolt

The dollar rebounded from overnight lows and steadied, as the market digested the minutes of the Federal Reserve's last policy meeting, which held the possibility of a March rate hike in play. The minutes of the Fed's Jan. 31-Feb. 1 meeting noted several policy makers saying that it was appropriate to hike interest rates again “fairly soon”, given that the jobs and inflation data come in line with expectations.

Dollar bulls were disappointed as they were hoping for a more hawkish tone from Fed Chair Janet Yellen. The greenback also weakened as policymakers brought up the downside economic consequences of a firmer dollar. The dollar index versus a basket of six major currencies climbed from overnight losses and was 0.15 percent higher at 101.380. The greenback dropped to a low of 112.905 yen overnight in an automatic response to the Fed minutes meeting but eventually pulled back to 113,420 for a gain of 0.1 percent.

The euro edged down 0.1 percent at $1.0548, as it retreated from a 1-½ month low of $1.094 the previous day. Sterling was flat at $1.2450 after slipping the day earlier as latest data showed that the UK business investment declined during the fourth quarter of 2016.

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**InstaForex Gertrude** · 24-02-17, 05:19

Trump Uncertainty Drives Bitcoin to Historic High

Bitcoin scaled a historic high as investors' risk aversion and impetus to hedge was triggered by the global uncertainty linked to President Donald Trump's policies and due to speculations that the new administration will ease regulations that governing the cryptocurrency.

The digital currency surged 3.1 percent and ended at $1,164.10 in New York trading, beating the record high of $1,137 notched in November 2013.

Prices of the e-currency has been volatile in the previous weeks. It nosedived as low as $789 earlier on January as Chinese regulators imposed stricter management and regulation of the domestic bitcoin exchanges, where global majority of bitcoin trading occurs. It has now remained above the $1,000 level for its longest-ever period, CoinDesk stated.

The latest rally was prompted by the political uncertainty stemming from President Trump's remarks and directives, analysts said. They added that the surge may be due to some investors driving digital currency prices up on hopes that the administration will loosen financial-industry rules and in turn make bitcoin more flexible to utilize.

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**InstaForex Gertrude** · 27-02-17, 04:57

Samsung Hints at Release of Galaxy S8 Release

Samsung Electronics Co. has hinted on the upcoming release of its Galaxy S8 smartphone and launched new tablets that target video-gamers and professionals as the firm seeks to regain ground lost after its previous disadvantage of pulling out the Note 7. The defeat cost the Korean company an estimated $6 billion and caused a severe blow to the firm.

The Galaxy Tab S3 has a 9.7 inch Amoled screen, quad-stereo speakers and allows users to play 4K video, according to Samsung ahead of the annual Mobile World Congress event in Barcelona. The Galaxy Book, is directed towards professionals, comes in with 10.6-inch and 12-inch models and runs the Windows 10 operating system. Samsung has finally confirmed a March 29 release date for the next smartphone.

For the time being, Samsung will launch the new tablets as well as a new virtual-reality viewer which the company has showed. The tablet portfolio “is built with premium technology that delivers a productive and versatile experience to consumers,” according to D.J. Koh, the head of Samsung's mobile communications business.

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**InstaForex Gertrude** · 28-02-17, 05:33

Dow Jones closes at 12th consecutive record high

US shares ended slightly higher while the Dow Jones ended at a 12th straight record close as traders are anticipating President Donald Trump's first speech to a joint session later on Tuesday.

Investors seek to search hints about the Trump government's policies for tax reform and easing regulations. He previously implied he wanted to beef up army spending by over 9%.

On Monday, the Dow Jones Industrial Average traded at 20,837.44, up 0.08%. The S&P 500 stood at 2,369.73, up 0.10%. The Nasdaq Composite closed at 5,886.90, up 0.28%.

The key stock indexes logged fresh record highs in the previous week but did not record advances as sturdy as the week before.

Trump's pledge of a breakthrough tax announcement helped revitalize the post-election surge, gliding the key US stocks to post new records.

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**InstaForex Gertrude** · 02-03-17, 04:27

Yahoo executives familiar with 2014 hack prior to Verizon deal

Yahoo admitted its senior executives were knowledgeable about a hack by a state-backed attacker in 2014 before it struck a $4.8 billion agreement with Verizon last summer.

Based on a probe by a separate panel, the technology company's senior officials and relevant legal staff were familiar with the incident but did not investigate it to the full extent of what was known by the firm's information security group.

It did not conclude that concealing these details was done intentionally.

Chief Executive Marissa Mayer announced she will relinquish her annual bonus and equity grant to Yahoo employees to compensate for the security breaches that took place in 2013 and 2014.

Yahoo's general counsel Ronald Bell left the company without any payoffs.

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**InstaForex Gertrude** · 06-03-17, 05:12

U.S. Energy Sector Slides in 2017

The energy sector is the stock market's biggest failure so far this year after it showed a stellar performance the previous year, as the rest of 2017 might also be a rough period for investors due to uncertainty. Shares of energy have been weak after surging in mid-December and have been the worst-performing of the S&P 500's 11 stock sectors this year.

Producers of oil have been the weakest among energy sub-industries, due to skepticism regarding the demand outlook as well as the unexpectedly high level of crude and finished product inventories. This year, energy has declined five percent, compared to the six percent increase for the overall S&P 500. However, analysts claim that production firms might be in the best position for gains. Investors have raised their wages on the sector, around $263 million has flowed into U.S.-listed energy mutual and exchange-traded-funds this year through February, according to data from Lipper. The Energy Sector Select SPDR Fund has attracted $400 million of new investment, it said.

Energy surpassed all other sectors in 2016, up by almost 24 percent due to the late-year rally following the election of Donald Trump as U.S. president which fuelled investor hopes for industry-friendly policies. Since the election, refiners have gained over 9.5 percent, while oil producers added less than two percent, the weakest energy sub-sector.

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**InstaForex Gertrude** · 07-03-17, 05:36

Snap Shares Experience First Slide on Analysts’ Downgrade

Following a strong market debut, Snap Inc. fell for the first time and edged down below the opening price of $24 during its first day of public trading after analysts started expressing their stance regarding the firm's true valuation.

The Snapchat-parent prices shares in its IPO which was warmly received by the market, surging by 44% on their first day of trading due to the strong demand. Its dramatic rally continued on Friday, rising further by 11%.

However, by Monday, majority of the seven analysts who are assigned to Snap had a sell recommendation on the stock, while two adviced to hold. Data showed no analyst stamped the stock with a 'buy' rating.

An analyst at Needham & Co. said the shares were overpriced during its IPO and estimated the firm will see a declining trend in earnings and valuation adjustments in the first two years of its public trading, stating that Snap's value was actually at $19 to $23 per share. A Morningstar Inc. analyst said that the company's monetization capabilities are not as strong as its valuation implies, and priced it at $15.

Snap sank 12 percent to trade at $23.77 at the close of New York trading, bringing down its value to around 28 billion.

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**InstaForex Gertrude** · 09-03-17, 05:22

Dow, S&P 500 Extend Declines as Energy Shares Plunge

Wall Street ended mostly lower as investors tackled declining oil prices and assessed the latest employment data. Oil prices plunged over five percent in the aftermath of a much stronger-than-expected increase in U.S. inventories.

The Dow Jones Industrial Average retreated 0.33 percent at 20,855.73, as Caterpillar led losses while Wal-Mart was the top gainer. The S&P 500 dropped 0.23 percent to close at 2,362.98, as energy sectors led seven sectors down while consumer discretionary outperformed. The Nasdaq Composite edged up 0.06 percent to close at 5,837.55.

The energy sector tumbled 2.5 percent, its largest loss since mid-September. Caterpillar was down 2.8 percent following a report from the New York Times which stated that it reviewed a report commissioned by the U.S. government, accusing the company of carrying out tax and accounting fraud. Shares of H&R Block jumped by almost 15 percent for their best day in more than eight years as the firm reported its quarterly results.

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**InstaForex Gertrude** · 10-03-17, 05:46

AirBnB Clinches $1 Billion in Latest Funding Round

AirBnB has managed to raise over $1 billion investment in its latest funding round, according to sources, which was later confirmed via a filing to the U.S. SEC.

The company managed to raise roughly an additional $450 million as part of its series of funding rounds, making the round almost double its original value during the last fall. According to the filing, the total amount came in at $1, 003, 312, 065.

Since its establishment in 2008, AirBnB has raised over $3 billion. The company was last reported to be raising investment fund at around $30 billion valuation. The most recent funding round brings the company's total valuation to around $31 billion.

AirBnB also swung to profit during the second quarter of 2016, according to sources. The company expects to continue being profitable this year.

Sources also reported that the home-sharing start-up firm has no plans to offer its shares on the stock market in the short-term.

The firm did not provide details on how it would utilize the raised money, but it is seen to further grow its operations globally.

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**InstaForex Gertrude** · 21-03-17, 06:08

Snap Jumps as its Bags First ‘Buy’ Rating

Snap shares rose after securing its first 'buy' recommendation from a Wall Street analyst, giving the social media tech company a reprieve from the sell-off it has seen since its market debut.

The $3.4 billion IPO initially received strong demand from investors, with the stock posting dramatic gains during the first two days after its official market debut. However, the stock steadily lost footing as investors concerns regarding the Snapchat owner's high valuation and lack of profitability induced doubts of analysts on Wall Street.

Based on the median recommendations of analysts comprised of three categories: buy, sell and neutral, Snap is currently the worst-rated stock among listed U.S. firms with a market cap of at least $20 billion.

But the stock was given a lift by Crespi, Hardt & Co. analyst James Cakmak, who gave the firm its first-ever “buy" rating and put the price target at $25. Its shares traded up 2.09 percent at $19.96 in midday trading.

In a report, Cakmak said that Snap is perceived as a firm with the potential to speed up its rate of revenue growth by seven fold. It is also projected with a sharp margin trajectory, while its peers have most likely reached their peak already.

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**InstaForex Gertrude** · 22-03-17, 05:42

Gold Prices Steady as Stocks Decline on Trump Agenda Concerns

Gold prices held strong, near 3-week peaks it notched the previous session, bolstered by the dollar's weakness while Wall Street tumbled on doubts over U.S. President Donald Trump's economic policy.

Spot gold edged up 0.1 percent at $1,245.21 an ounce, it reached its strongest since March 2 at $1,247.60. U.S. gold futures settled 0.1 percent lower at $1,245.60. Holdings of SPDR Gold Trust increased by 0.50 percent to 834.40 tonnes from 830.25 on Monday.

Russia's biggest gold producer, Polyus, has finally agreed to sell it 82.34 percent stake in a joint venture with Polymetal, which holds rights to develop the Nezhdaninskoye gold deposit. Hong Kong's net gold exports to Switzerland reached its highest in February since records started five years ago, according to the Swiss customs bureau. Overall shipments from the territory more than doubled to a three-month peak.

Intercontinental Exchange (ICE) delayed the launch of clearing for London's benchmark gold price since all of the participants in the auction remain unprepared, according to two sources familiar with the topic.

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**InstaForex Gertrude** · 27-03-17, 04:47

HNA Group to Buy Stake in Old Mutual U.S. Unit

Chinese travel-to-financial services conglomerate HNA Group has agreed to purchase a 25 percent stake in Old Mutual Plc's U.S. asset management unit for around $445 million. Old Mutual will then trim its stake in OM Asset Management to 26 percent, lower from 51 percent.

The financial services conglomerate is selling its holdings in OMAM to HNA Group in two tranches, according to a statement from Old Mutual. The first, which consists of 9.95 percent at $15.30 a share, will be completed within 30 days while the following 15 percent stake at $15.75 will take place in the second half, the UK-based company said. The Hainan-based conglomerate has invested in financial services as part of its effort to expand its portfolio beyond tourism and aviation. The stake is the latest in HNA's $30 billion haul of deals since 2016.

Old Mutual has received several offers to purchase a part of its stake in OMAM, which includes TPG and Advent. HNA Group is also leading a deal to procure Manhattan's 245 Park Ave. for $2.21 billion, according to two people with knowledge of the talks.

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**InstaForex Gertrude** · 31-03-17, 04:05

Dudley: Fed Rate Hikes Suitable to Counter Overheating Risk

Interest rate rises are appropriate to curb the threat of overheating, according to a Federal Reserve official.

New York Fed President William Dudley said Thursday it deems suitable to cut down on monetary policy accommodation gradually to lower the peril of the economy overhearing as well as avert a substantial inflation overshoot in the medium-term.

He noted the federal funds rate are still unusually low even after the Fed increased rates this month.

Noting significant uncertainties and risks overseas, the Fed official said the economic view abroad seems to improve and the dangers are largely lower than before.

Dudley also said the American economy has continued to grow moderately above its attainable long-term rate. He added inflation and growth threats are off to the upside.

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**InstaForex Gertrude** · 03-04-17, 05:38

Gold Prices Steady, Bolstered by Lacklustre U.S. Data

Gold prices were steady after posting their best quarter in a year, buoyed by tepid economic data from the U.S. and dovish comments from Federal Reserve officials on Friday.

Spot gold was mostly flat at $1,2480.50 an ounce while U.S. gold futures settled at $1,251. Spot gold touched a quarterly gain of nearly 8.4 percent on Friday, posting its best quarter in a year.

The U.S. mint sold 21,000 ounces of American Eagle gold coins in March, lower by 23.6 percent from the month earlier, according to new data. The demand for the precious metal in India increased this week as a result of a festival and as local prices adjusted to an appreciating rupee, while higher prices held demand elsewhere in Asia.

Hedge funds and money managers increased their net long position in COMEX gold for the second consecutive week in the week to March 28, and raised it slightly in silver, according to U.S. Commodity Futures Trading Commission data on Friday.

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**InstaForex Gertrude** · 04-04-17, 04:26

Fed Official Stands Pat on Two More Rate Hikes this 2017

An official reiterated the Federal Reserve should increase rates for at least two times this 2017 in order to avert moving behind the curve or hastening its toughening plans.

Philadelphia Fed President Patrick Harker noted Monday he still presumes it is the sound judgment, adding the rate hike tempo is slowly and is conforming with expectations.

Last month, the Fed escalated interest rates again following three months, nodding to stable jobs expansion and cues the inflation may be increasing.

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**InstaForex Gertrude** · 07-04-17, 04:21

Wall Street Slightly Higher, Investors Focus on Trump-Xi Meeting

U.S. equities finished off session peaks after comments about North Korea while investors focused on upcoming talks between U.S. President Donald Trump and Chinese President Xi Jinping. Trump said he is willing to act alone on North Korea if China does not step up.

The Dow Jones industrial average edged up 0.07 percent at 20,662.95, as Caterpillar led gains while Procter & Gamble was the top decliner. The S&P 500 added 0.19 percent at 2,357.49, as energy led seven sectors up while telecommunications lagged behind. The Nasdaq composite climbed 0.25 percent at 5,878.95. The three major indexes were nearly 0.5 percent higher prior to Trump's comments, which were done as he braced for the key meeting with the Chinese president.

Four of the 11 major S&P sectors closed lower. The energy index was up 0.8 percent as oil prices increased to near one-month peaks. Comcast Corp gave the largest boost to the S&P with its 2.1 percent advance to $38.13 following its announcement of a wireless service.

Investors are cautious ahead of the corporate earnings season next week due to lofty valuations. The S&P 500 index is trading at around 19 times ahead earnings estimates, above its long-term average of 15.

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**InstaForex Gertrude** · 10-04-17, 05:23

China Moves to Avoid Trade War with America

China will offer concessions aimed at avoiding a trade war with the United States, according to American and Chinese officials engaged in negotiations between the two governments.

Chinese leader Xi Jinping and US President Donald Trump met last week at the latter's beach resort in Florida. Officials said both leaders agreed they need swift trade talks to produce results in 100 days.

Chinese officials said the Asian country is willing to escalate investment ceilings in the bilateral investment treaty, as well as lift a ban on US beef imports and purchase additional grains and other agricultural products.

Trump has not yet divulged if he seeks to push through with the deal, which American mediators hoped would resolve China market access issues in various industries.

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**InstaForex Gertrude** · 12-04-17, 03:25

Wall Street Retreats as Geopolitical Concerns Persist

U.S. equities dropped as investors remained worried about geopolitical developments, which eventually pushed safe-havens higher. Adding to the sour mood, North Korea state media warned of a nuclear attack on the United States once provoked, as a U.S. Navy strike group moved towards the western Pacific.

The Dow Jones industrial average slipped 0.03 percent to 20,651, with Apple leading losses while McDonald's was the best performer. The S&P 500 shed 0.14 percent to 2,353, as technology led seven sectors down while real estate was the top gainer. The Nasdaq composite tumbled 0.24 percent to 5,886.

The CBOE Volatility Index (VIX), considered the best gauge of fear in the market, is up more than seven percent at 15.14. The index has traded over ten percent higher earlier in the session. Investors are counting on strong corporate earnings to help justify pricey valuations.

The financial sector fell 0.3 percent and the technology dropped 0.4 percent. Among shares active on corporate news, United Continental slipped 1.1 percent following a worldwide backlash against the airline as a passenger was reportedly pulled off of one of its flights. Late in the trading session, its chief executive issued an apology.

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**InstaForex Gertrude** · 20-04-17, 04:19

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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