Forex News from InstaForex

**InstaForex Gertrude** · 15-08-17, 04:55

VALE: Company To Increase Corporate Governance Level Sooner Than Expected

The chief executive officer of the Brazilian miner Vale, Fabio Schvartsman, said that the company could enter the Novo Mercado stock market segment - which means that the firm will follow the highest standards of corporate governance available in Brazil - sooner than expected.

"We do not have the date yet, but we will do everything at reach to make it fast. It is possible that it will happen later this year," the executive said in a teleconference with reporters.

His statement came after Vale's stockholders agreed to convert 84.4% of the company's preferred shares into common shares. According to Schvartsman, nobody expected such high level of commitment to the share conversion process.

Now, Vale is reviewing what to do with the remaining preferred shares. One possibility would be to hold a new shareholder meeting to convert those stocks. Schvartsman also reiterated that it would not be necessary to use company money to buy the shares, since shareholders who did not join the conversion did not do so due to regulatory issues, such as index funds abroad.

Vale needed a conversion rate of at least 54.09% to proceed with its corporate restructuring and for changes in corporate governance, such as those required to enter the Novo Mercado segment.

After the conversion, Valepar - Vale's controlling shareholder - will merge with and into the mining company. Valepar is formed by Bradesco, Mitsui, BNDESPar and state pension funds, such as Previ. In this way, shareholders linked to the government will have smaller shares.

Asked about government participation in the company, Schvartsman said that this issue is "100% solved" and that government interference in the company "is a page turned." "Not that there was interference, but the government is very welcome as a minority shareholder," he said.

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**InstaForex Gertrude** · 15-08-17, 05:27

Wall Street Higher as North Korea Tensions Dwindle Down

U.S. stocks closed higher on Monday from the previous week's selloff, as traders saw geopolitical tensions subsiding.

The Dow Jones industrial average climbed 0.62 percent to 21,993.71, as Goldman Sachs, Apple and Boeing contributed the most advances.

The S&P 500 advanced one percent to 2,465.84, as the information technology ended at a record peak. The S&P also recorded its best day since April 24, when it climbed 1.08 percent. The Nasdaq composite gained 1.34 percent to 6,340.23, with shares of Amazon, Facebook and Tesla all increasing.

The CBOE Volatility index, Wall Street's fear gauge, dropped over three points after it jumped to a nine-month peak last week.

Technology shares were among stocks that gave the index its largest boost. Apple rose 1.5 percent and the S&P 500 technology index climbed 1.6 percent.

Tesla advanced 1.7 percent after two brokerages increased their price targets on the stock, citing possible success of the firm's Model 3 sedan.

Snap Inc rose 6.5 percent after notching a record low early in the session, as investors posted their stakes in the social media firm while a wave of employees became eligible to sell their shares.

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**InstaForex Gertrude** · 18-08-17, 08:23

Malaysia GDP Growth Improves Unexpectedly In Q2

Malaysia's economic growth accelerated unexpectedly in the three months ended June, figures from the Department of Statistics showed Friday.

Gross domestic product advanced 5.8 percent year-over-year in the second quarter, faster than the 5.6 percent rise in the Mach quarter. Meanwhile, economists had expected the growth to ease to 5.4 percent.

During the fourth quarter of the previous year, the rate of expansion was 4.5 percent.

Malaysia's economy remained its uptrend momentum since second quarter of 2016.

On the expenditure side, private final consumption expenditure grew 7.1 percent annually in the second quarter and gross fixed capital formation rose by 4.1 percent.

Both exports and exports climbed by 9.6 percent and 10.7 percent, respectively.

Quarter-on-quarter, the seasonally adjusted GDP increased at a slower pace of 1.3 percent in the June quarter, following a 1.8 percent growth in the preceding three-month period.

Separately, the statistical office revealed that the current account surplus of the country rose to MYR 9.6 billion in the second quarter from MYR 5.3 billion in the first quarter.

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**InstaForex Gertrude** · 30-08-17, 04:27

MEXICO: Country Will Seek 'Plan B' If Trump Pulls U.S. Out Of NAFTA

Threats by U.S. President Donald Trump to withdraw the United States from the North American Free Trade Agreement (NAFTA) during renegotiations are encouraging Mexico to create a "Plan B," said the Mexican Secretary of Economy, Ildefonso Guajardo Villarreal.

According to him, Mexico needs to be prepared to the possibility of the United States walking away from the NAFTA deal.

"The best thing Mexico can do is to have an alternate, clear, pragmatic, plan to tackle something that is not our goal, but that may be the result of a process that does not go ahead. We need to be prepared for a scenario in which the United States or its president leaves the NAFTA," Villarreal said in an interview with the El Economista newspaper.

According to him, Mexico must advance in its commercial diversification with South American countries, such as Brazil and Argentina, with the European Union, the Pacific Alliance, and other Asian countries.

Trump said there was little chance that the NAFTA renegotiation, currently underway between Mexico, Canada, and the U.S., would be successful. The president attributed the potential failure of the negotiations to Mexico, claiming that its Southern neighbor would be hampering a new agreement.

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**InstaForex Gertrude** · 05-09-17, 05:19

Australia Current Account Deficit Balloons To A$9.562 Billion

Australia had a current account deficit of A$9.562 billion in the second quarter of 2017, the Australian Bureau of Statistics said on Tuesday.

That missed forecasts for a shortfall of A$7.5 billion following the downwardly revised A$4.754 billion deficit in the first quarter (originally -A$3.1 billion).

Net exports of GDP came in at 0.3, topping expectations for a flat reading following the 0.7 decline in the three months prior.

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**InstaForex Gertrude** · 12-09-17, 04:53

PERU: Mining Investment Rises 1.5%, Interrupting Three Years Of Decline

Peru's mining sector investments between January and July 2017 reached US$ 2.372 billion, a 1.5% growth compared to the same period of the previous year.

It was also the first increase since May 2014, according to the Peruvian Ministry of Energy and Mines.

Almost all mining investment items posted increases in the period: exploration (+25.2%), mining equipment (+25.1%), preparation (+23.6%), infrastructure (+22%), equipment (+12%) and investments in operation (+10.5%).

Mining exploration investments totaled US$ 237 million.

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**InstaForex Gertrude** · 04-10-17, 07:15

Singapore Private Sector Accelerates In September - Nikkei

The private sector in Singapore continued to expand in September, and at a faster pace, the latest survey from Nikkei revealed on Wednesday with a PMI score of 53.7.

That's up from 53.2 in August, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, there were faster rises in both new orders and output, while export growth hit a record high.

Backlogs rose again despite additional staff numbers.

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**InstaForex Gertrude** · 09-10-17, 07:32

China Private Sector Growth At 3-Month Low

China's private sector expanded at the weakest pace in three months in September, survey data from IHS Markit showed Monday.

The Caixin composite output index fell to 51.4 in September from 52.4 in August. However, any reading above 50 indicates expansion in the sector.

The slowdown was driven by weaker increases in output at both manufacturing and services companies.

The seasonally adjusted General Services Business activity index declined to 50.6 in September from 52.7 in August.

Moreover, this signaled a marginal increase in services activity that was the slowest for 21 months.

At the same time, growth in manufacturing production edged down to a three-month low.

"The expansion in both manufacturing and services cooled in September, suggesting downward pressure on economic growth may re-emerge in the fourth quarter," Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said.

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**InstaForex Gertrude** · 12-10-17, 07:15

Australia Home Loans Rise 1.0% In August

The total number of home loans in Australia was up a seasonally adjusted 1.0 percent on month in August, the Australian Bureau of Statistics said on Thursday - coming in at 57,161.

That beat forecasts for a gain of 0.5 percent following the downwardly revised 2.8 percent increase in July (originally 2.9 percent).

Investment lending advanced 4.3 percent to A$12.633 billion after sliding 3.7 percent in the previous month.

The value of loans gained 0.9 percent to A$21.265 billion after rising 1.3 percent a month earlier.

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**InstaForex Gertrude** · 13-10-17, 07:56

Singapore GDP Surges 6.3% On Quarter In Q3

Singapore's gross domestic product climbed a seasonally adjusted 6.3 percent on quarter in the third quarter of 2017, the Ministry of Trade and Industry said in Friday's advance estimate.

That beat forecasts for an increase of 3.7 percent following the upwardly revised 2.4 percent gain in the second quarter (originally 2.2 percent).

On a yearly basis, GDP jumped 4.6 percent - again exceeding expectations for 3.8 percent following the 2.9 percent increase in the three months prior.

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**InstaForex Gertrude** · 16-10-17, 06:57

China CPI Slows To 1.6% In September

Consumer prices in China were up 1.6 percent on year in September, the National Bureau of Statistics said on Monday.

That was in line with expectations, and down from 1.8 percent in August.

On a monthly basis, consumer prices were up 0.5 percent - accelerating from 0.4 percent a month prior.

The bureau also said that producer prices jumped an annual 6.9 percent - exceeding forecasts for 6.4 percent and up from 6.3 percent in the previous month.

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**InstaForex Gertrude** · 03-11-17, 03:46

Dow Ends at Record Peak, S&P Flat after Release of Tax Reform Bill

U.S. equities finished mostly higher on Thursday as investors assessed the details of the tax-reform plan proposed by Republicans.

The plan would reduce the corporate tax rate to 20 percent from 35 percent but also ending certain tax breaks for firms and individuals.

The Dow Jones industrial average rose 0.35 percent 23,516.26, a record peak, after briefly losing 84 points. The index also notched a record intraday peak. Shares of Boeing were the best-performers on the 30-stock index.

The S&P 500 edged up 0.02 percent to 2,579.85, with financials climbing 0.9 percent. The index finished above the flatline. Shares of Allstate were among the best-performing stocks in the financials sector, adding 3.8 percent.

The Nasdaq composite finished below breakeven at 6,714.94; it dropped earlier, with tech investors being disappointed by the 12 percent rate on repatriated cash.

Apple advanced as the iPhone maker's revenue forecast for the holiday shopping quarter was highly above market expectations.

Facebook dropped 2.0 percent as investors brushed off solid quarterly results and were more concerned about the social media firm's spending. The stock was the biggest laggard on the S&P 500 and Nasdaq.

U.S. housing sector stocks plunged amid concerns regarding the tax plan's cap on deductions for mortgages. The PHLX Housing index dropped 1.1 percent, with Toll Brothers losing 6.1 percent and MDC Holdings down by 12.0 percent.

Shares of home improvement retailers also declined. Lowe's fell 4.1 percent and Home Depot pulled back 1.6 percent, adding pressure on the Dow.

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**InstaForex Gertrude** · 07-11-17, 06:17

Wall Street Notched Record Peaks as Dealmaking Eyed

U.S. equities advanced to record peaks on Monday, supported by news of corporate dealmaking and as investors bet that a Republican plan to trim corporate taxes would buoy earnings.

The Dow Jones industrial average climbed 0.04 percent to 23,548.42, an all-time peak. The S&P 500 managed to hit a record peak, rising 0.13 percent to 2,591.13. The Nasdaq composite also ended at an all-time peak, adding 0.3 percent to 6,786.44.

Investor optimism was also spurred by a Republican proposal to lower the corporate tax rate to 20 percent from 35 percent and end some tax breaks for firms and individuals.

Qualcomm gained 1.15 percent after Broadcom offered to buy its fellow chip maker for $103 billion, in what could be the largest-ever acquisition in the tech sector. Shares of Broadcom rose 1.42 percent. Qualcomm's increase also helped the VanEck Vectors Semi ETF to notch an intraday record peak.

Advanced Micro Devices also bounced on dealmaking news.

Twenty-First Century Fox soared 9.93 percent after CNBC reported that the film and television conglomerate has held talks to sell most of the company to media giant Walt Disney Co. Shares of Disney climbed 2.02 percent.

Apple advanced 1.01 percent and contributed the most to the S&P 500 index's gains.

The S&P 500 energy index jumped 2.2 percent on gains in crude prices after the crown prince of Saudi Arabia, the world's biggest oil exporter, tightened his grip on power through an anti-corruption purge.

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**InstaForex Gertrude** · 08-11-17, 04:53

Wall Street Mixed; Media Stocks Rise on Dealmaking Prospects

U.S. equities advanced on Tuesday as investor sentiment was supported by the prospects of dealmaking in the media sector.

The Dow Jones industrial average climbed 0.04 percent to 23,557.23, extending a record closing peak. The S&P 500 ended just below breakeven at 2,590.64. The Nasdaq composite dropped 0.4 percent to 6,767.78. The three indexes notched intraday record peaks earlier in the session.

Dealmaking hopes were fueled by news that Disney approached 21st Century Fox on a deal. The two companies have been in talks in recent weeks, but there is no certainty that a deal will get done. Disney gained one percent and was the best-performing stock on the Dow.

Shares of Discovery Communications bounced 1.3 percent and were among the best performers on the S&P 500. CBS also climbed 1.14 percent.

Financial shares dropped as Wells Fargo lost 1.7 percent and Citigroup dropped 1.8 per cent. Shares of JPMorgan were also down by 2.8 percent. The decline in financials comes as the yield curve flattened further for a seventh day in a row.

TripAdvisor and Priceline were the biggest decliners on the S&P 500 after both online travel websites issued quarterly results that raised concerns on their growth prospects.

Solid corporate earnings, along with improving economic data and the prospects of changes to the U.S. tax code, have helped stocks to increase higher since President Donald Trump was elected.

In the first and second quarter of the year, S&P 500 earnings rose 15.5 percent and 10.8 percent, respectively. The current earnings season has also been resilient. According to FactSet, third-quarter earnings have increased 6.3 percent on a year-over-year basis.

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**InstaForex Gertrude** · 09-11-17, 04:14

China CPI Climbs To 1.9% In October

Consumer prices in China were up 1.9 percent on year in October, the National Bureau of Statistics said on Thursday.

That exceeded expectations for 1.8 percent and was up from 1.6 percent in September.

On a monthly basis, inflation gained 0.1 percent after rising 0.5 percent a month earlier.

The bureau also said that producer prices advanced an annual 6.9 percent - unchanged from the previous month but topping forecasts for 6.6 percent.

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**InstaForex Gertrude** · 10-11-17, 04:57

Germany Trade Surplus Slightly Expands in September

Germany's trade surplus increased marginally in September, as imports fell more than exports compared to August.

According to official data from the Federal Statistics Office, the surplus stood at €21.8 billion in September on a seasonally adjusted basis from €21.3 billion in August.

The widening came as exports dropped 0.4 percent to €107.5 billion, and imports dropped one percent to €85.7 billion. The surplus was €20.2 billion the previous year.

The reading, which followed months of growth in both exports and imports, showed that sales of German goods and services abroad only slightly grew overall in the third quarter.

According to economists, trade would not provide any significant contribution to expansion in the quarter, but they are optimistic about the outlook given strong demand for German goods.

Industrial firms posted a 3.6 percent rise in orders in August after contracts for “Made in Germany” goods dropped by an upwardly revised 0.4 percent in July, recent data showed.

Export growth has been softer, which indicates that the economy is counting more on consumption, state spending and construction as drivers.

The country's wider current account surplus, which measures the flow of goods, services and investments, increased to €25.4 billion after an upwardly revised reading of €18.0 billion in August, unadjusted data showed.

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**InstaForex Gertrude** · 17-11-17, 06:08

COLOMBIA: Government Lowers Growth Projection For 2017 To 1.8% From 2%

The Colombian economy should grow less than expected in 2017 - from 2% to 1.8% - said the South American country's Minister of Finance, Mauricio C?rdenas. The minister made the estimate after Colombia's statistics office reported that country's Gross Domestic Product (GDP) grew by 2% in the third quarter of 2017 on an annual basis.

According to C?rdenas, the official figures "confirm, once again, that the worst is over, that we overcame the most difficult moment and the economy is in a recovery process."

He also said that the government expects a 2.5% annualized growth in the fourth quarter of 2017.

C?rdenas stressed that the third-quarter's data was much better than the last four quarters records, which "raises a more positive economic scenario."

Finally, the minister announced that the economy is expected to grow around 3% in 2018, in line with the forecasts of the International Monetary Fund (IMF) which, in its most recent report, estimates that the Colombian GDP would increase in a 2.8%.

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**InstaForex Gertrude** · 21-11-17, 06:18

BRAZIL: Real Remains Unchanged As Local Holiday Drains Market Liquidity

A local holiday in S?o Paulo, the main financial center in Brazil, kept the country's stock market closed Monday and drained liquidity from the foreign exchange trading, leading the real to end the session unchanged at R$ 3.2640 per dollar.

According to Correparti's analyst Ricardo da Silva Filho, there were dollar trades in cities where there was no holiday, but the smaller trading volume resulted in an increased bid/ask spread.

"There was no market benchmark to the dollar price. Only those who really needed were trading," he added.

On Tuesday, when the market volume is set to rise again, traders will focus on the developments regarding the pension reform bill, said analysts from H. Commcor.

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**InstaForex Gertrude** · 23-11-17, 06:12

U.S. Yields Slide as Fed’s Concerns About Subdued Inflation Persist

Prices on U.S. government bonds advanced, causing yields to retreat, after the minutes of the Oct. 31-Nov. 1 meeting of the Federal Reserve showed policymakers are worried about the weak inflation, affecting the prospects for rate hikes in 2018.

The 10-year Treasury note yield edged down by 4.1 basis points to 2.320 percent. Meanwhile, the yield on the two-year note declined by 3.8 basis points to 1.735 percent. The yield on the long bond or the 30-year Treasury note fell by 2.1 basis points to 2.741 percent.

On Thursday, financial markets will be closed for the Thanksgiving Day holiday, while stock and bond markets are slated for an early close on Friday.

The readout from the November meeting of the Federal Reserve OPen Market Committee indicated a December rate hike continues to be on its planned track, a move that is highly expected by markets. Before the release of the minutes, traders in the fed fund futures market placed a 97 percent probability of a rate hike in December.

However, the overall perception of the meeting's talks were mostly dovish as some officials voiced their concern regarding inflation remaining below 2 percent for longer than their current expectations.

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**InstaForex Gertrude** · 24-11-17, 06:34

Japan Manufacturing Growth Strongest Since March 2014

Japan's manufacturing activity expanded at the steepest pace in more than three-and-a-half years in November, survey figures from IHS Markit showed Friday.

The Nikkei flash Manufacturing Purchasing Managers' Index, or PMI, climbed to a 44-month high of 53.8 in November from 52.8 in October.

Any reading above 50 indicates expansion in the sector.

Among components, output, new orders, employment all increased at faster rates in November.

"A cheaper yen and higher material prices have intensified cost pressures, as input price inflation increased to a 35-month high in November," Joe Hayes, Economist at IHS Markit, said.

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