Andrea ForexMart

 New Section "Economical News"  Dear traders!  We have added a new section "Economic news" on our site. Every day we will publish the main news in the field of economics and finance. In this news section you will always find interesting, actual and relevant information about important economic indicators, current exchange rates and much  more. You can also learn the latest important events affecting the world and Russian economy.  Keep the track of the world events and stay tuned with ForexMart!

 Italian Government Solicits €20bn to Support Their Struggling Banks The Italian government waiting for parliamentary approval to borrow as much as 20 billion Euro equivalent to 17 billion pound to backed up weak banking sector especially Monte dei Paschi. This puts pressure to the newly elected Italian Prime Minister Paolo Gentiloni afraid to suffer losses regards to bailout rules of European Union. He indicated that this serves as a preventive measure to protect savings. Also, Pier Carlo Padoan the Italian economy minister said that this would be used to induce liquidity in the banking industry to support troubled banks. They are looking for ways to pay losses incurred by retail investors.

The current Money Fall contest has already started on December 19, 2016 and will end on December 23, 2016. You can register for the next competition which will take place from December 26, 2016 to December 30, 2016 (Terminal time). . Note: Registration for the next competition finishes 1 hour before the contest starts.

 RBA Interest Rate Decision Remained at 1.5%  The central bank of Australia or also known as RBA has announced their final decision during the board meeting held every month. The Reserve Bank of Australia made a resolution to keep their rates unchanged with a record low reaching 1.50 percent.  According to a site whose purpose is to compare mortgage rates, finder.com.au have made a survey among 75 experts in the industry and most them expected that rates will still be consistent. Furthermore, they support the RBA’s decision as there is no reason to demand the bank to employ such changes. Many professionals from the industry anticipate that the next move of the Australian financial system will be on the upcoming February 2017.

GBP Hits Highest Level in Two Months as Market Hopes UK Government Loses Brexit Case  The sterling pound hit a two-month high after the UK Supreme Court recently concluded its second day of arguments with regards to discussing the right to commence the Brexit referendum, or the UK’s imminent separation from the EU. The GBP recorded its sixth day of increase against the USD, its second consecutive monthly gain since November. The UK government has already lost a Supreme Court case, which was about whether the Parliament should be first given the right to do a vote before the actual implementation of Theresa May’s Brexit strategies. Â

 China Needs to Address Rising Leverage Concerns  China has to implement market-oriented reforms at a faster pace to counterbalance the climb in corporate leverage including the unnecessary disturbances in the state sector according to a U.S. Treasury official.   The reform is said to include the removal of ‘state guarantees’ and financial sector that disproportionate State-owned Enterprises charged to private sector firms. The country has an estimated total of $18 trillion debt that represents partly of the GDP. They see the relevance of removal of barriers that limits the participation of local and foreign companies in the service sector in line with the shift in focus from a manufacturing-centered country.

 UK’s PMI Edged Higher in November  The primary businesses in the service sector of U.K had an upsurge last month and its highest rate was recorded January, while the economy continued to have its current momentum despite of the fear of some companies regarding the future markets as indicated in yesterday’s survey.  As the Markit/CIPS PMI handles the data relative to the economic sector as it gained 55.2 points for the month of November versus  the 54.5 October data, the recent results had presented better-than-expected outcome of Reuters poll surveyed by economists.

 Money Fall Contest Winners for the week of November 14 - 18, 2016 Rank 1 Nickname: bahus17 City:  Ровно Rank 2 Nickname: gamerbd14 City: DHAKA Rank 3 Nickname: beta012 City: Maros Rank 4 Nickname: serov12 City: Екатеринбург Rank 5 Nickname: JUP-888 City: Klongsan Rank 6 Nickname: ForexForce254 City: Nairobi Rank 7 Nickname: hubert55u City: Borne Sulinowo Rank 8 Nickname: kencul City: Masai Rank 9 Nickname: Cross Road City: Klaten Rank 10 Nickname: kuzmich1072 City: Barnaul

 The current Money Fall contest has already started on December 5, 2016 and will end on December 9, 2016.  You can register for the next competition which will take place from December 12, 2016 to December 16, 2016.  Note: Registration for the next competition finishes 1 hour before the contest starts.

Euro Drops, Bonds Surge as Italy Says No to Constitutional Reforms  The EUR plummeted along with Asian stocks while bond prices surged after the Italian government voted “No” on the referendum for constitutional reforms, which sparked concerns that this recent development in the country will induce instability in the Italian economy and boost nationalist organizations. The euro hit its lowest point in almost two years after Italian PM Renzi announced his resignation. UK-based stocks and Asian shares index futures also dropped, while government debt recoiled in Treasuries during Friday’s session. Â

PM Renzi's Plan for Italy's Reformation Has Failed on Sunday  The Prime Minister of Italy, Matteo Renzi had his decision to resign last night after he lose in a constitutional referendum held Sunday, 4th of December 2016. The Italian politician admitted his defeat prior to the issuance of the official results and as expected the exit poll exhibited that Renzi is facing a humiliating defeat.  The referendum rise due to the plan of the 41-year-old PM to establish a major economic reform package in order to reconstruct the political system of the country. As he proposed to reform the power of the senate as well to reduce its number present in the lower house of parliament. Furthermore, he wanted to amend the political authority of every state and region in Italy.  Â

New Monetary Policy of Japan: Massive Buying Government Bonds Continues  The new policy framework of Japan to help the increase of policy rates to elevate the economy will be carried on to increase inflation rates. The BOJ decided to change their policies after the printing of money and huge asset buying to be unsuccessful to meet its 2 percent inflation target. In views of this, they are trying to create a more sustainable monetary policies. The massive buying of government bonds will be maintained with yield curve being inline with central bank's expectations. Although there are concerns that this move negatively affects the real-estate investment trust market of Japan. Â

As Energy Corporations Retreat, Canadian Stocks Drop to Lowest Levels in Two Weeks  Canadian stocks dropped to its lowest levels in two weeks after oil companies were subject to significant losses in the light of talks among producers prior to the OPEC meeting scheduled in Vienna, Austria within the week. Energy corporations led the S&P/TSX Composite Index lower after it fell by up to 1.4% for three consecutive days, which is  the longest losing streak for the index since November. Out of the 11 industries in this particular index, 7 companies experienced losses, and industrial stocks also retreated and were subject to significant decreases.  Â

OECD Expects 3% Growth Slip for Australia Until 2018  The intergovernmental economic organization, OECD has released its recent assessment regarding the economic stance of Australia. According to the organization, the economic growth of the region has the tendency to decline by 3% by the end of the current year and expected to persist until 2018 by which the RBA already planned to had an increase of rates by the aforesaid period.  In the month of June, the country’s economy appears to be growing, however, economists studied that the Australian continent reached its soft spot where growth are limited after the issuance of national accounts for September were released on the 7th of December.  The OECD advised during this phenomenon of growth slippage, the government should lead the ways in order to recover as soon as possible through investing in infrastructure rather than implying a rate cut considering that the average housing prices and rates are relatively low. Â

Oil Market Uncertainty Brought the Prices Down  Market still awaits if OPEC will be able to reduce their production output on Wednesday bringing the oil price down on Tuesday. The next OPEC meeting will be held on Wednesday at Vienna to come up with a decision to cut production. This brought uncertainty in the market resulting in high volatility. Political considerations and set agreement for quota of countries hinders from coming up to an agreement. If there will be no agreement reached, oil prices are expected to rise averaging $45 per barrel until next summer. Â

 Gold Recovers from Nine-Month Slump as USD Drops  Gold stocks were able to recover from its recent nine-month slump as the USD’s strength which sent gold prices down and pushed silver into a bearish market finally fizzled out. As gold finally clocked in its first increases in four days, its weekly loss was cut back by up to 2%, while prices have all but decreased following the release of highly positive economic data and expected increase in national spending after Trump’s recent win increased market expectations of added interest rates. As a result, a lot of investors are now selling off gold-backed investments, the fastest selloff seen in three years.

Base Metals Continued to Surge Due to Increase in Infrastructure Spending  Metals had a persistent improvement amid on the supposition on Trump’s infrastructure expenditure and weakness in the overall inventories. Copper was able to arrive on its one-week high after the extensive downfall of the base metals. In trading copper within Asia has reached $269.90. However, investors speculate that Trump’s fiscal investment is almost $1trn which is expected to be the driving force for growth but will lessen the supplies considering the fact that China’s yuan hedging. In light of this, the bullish impetus gives rise for the demand of the trend-following fund as it was able to surge the buying pressure. Furthermore, the industrial metals sustained an upward lift amid the strengthening of the U.S dollar compared to other currencies.  Despite China’s procurement of copper as a hedge to overcome yuan devaluation, the data issued specified a positive growth in supply. There is also an expected rally in prices of other  base metals in order to raise an opportunity to replenish short trading commodities. Â

Service Sector Affected by Low Optimism in the Economy  Low consumer spending and rise in wages affected the Service sector of U.K. for this month of November. This would bring negativity this Christmas season since pound has also depreciated. Companies rendering professional services are expected to decline in sales while it is the opposite for consumer services which is predicted to rise in sales in the next three months.  Even though, the consumer confidence has weakened, the employment growth remained steadfast. Consumer companies may allocate funds to training which will increase spending but cut down expenses on location, vehicles and machineries. Â

U.S Dollar Gained Much Power Even Before Trump’s Victory  The greens continuously rise after Donald Trump won the American presidential election. However, these upsurge angst companies that imports their products to other countries which caused few investors to place the full responsibility to Trump for they earning less than their average gains because the dollar is too strong.  Moreover, these complaints were on the deck before the new U.S President-elect take his position. The squawks from companies point out that the cause of low earnings is due to the issues regarding the stronger dollar. Some of the large companies that the currency brought headwinds into their firms include Apple, Alexion Pharmaceuticals, Kraft Heinz, Procter & Gamble and Whirlpool.  According to the research made by the Pavilion Global Markets that current stance of the dollar is the top reason why companies earned worse than their expectations, followed by issues concerning Brexit, election, the Fed, and wages.  Nevertheless, Jim Paulsen from Wells Capital Management said in an interview that he predicts that the greenbacks will experience a decline for 2017 because of the increasing inflationary expectations. Â

Sluggish Trades Affect Germany’s Economic Growth  The economic growth of Germany slowed down by 0.2 percent in the third quarter even though both the government and consumer spending has significantly increased. Mainly due to the feeble foreign trading that brought an impact to Europe’s largest economy.  The Government spending rose by 1.0% while the Household spending climbed by 0.4%, both adding 0.2% to GDP economic growth. However, the net foreign trade deducted 0.3 percentage point from GDP growth since exports fell by 0.4% while imports ascended by 0.2%. This implies that the companies are withholding investments in the brink of low monetary policies of the European Central Bank. Â

Sluggish Trades Affect Germany’s Economic Growth  The economic growth of Germany slowed down by 0.2 percent in the third quarter even though both the government and consumer spending has significantly increased. Mainly due to the feeble foreign trading that brought an impact to Europe’s largest economy.  The Government spending rose by 1.0% while the Household spending climbed by 0.4%, both adding 0.2% to GDP economic growth. However, the net foreign trade deducted 0.3 percentage point from GDP growth since exports fell by 0.4% while imports ascended by 0.2%. This implies that the companies are withholding investments in the brink of low monetary policies of the European Central Bank. Â

Canadian Stocks Reaches Highest Levels in 17 Months Due to Massive Retail Sales Profits  Canadian stocks continued its increasing trend for a total of four days and has already reached its highest levels in 17 months as a result of massive retail sales gains, with retail sales clocking in its biggest profits incurred since April 2016. Canada’s retail sales data showed gains worth 0.6% in September 2016, its biggest gains posted since April and an indicator of the spending of the Canadian government’s recently-minted child benefits. Meanwhile, the Canadian equity benchmarks scored more gains as  the DJIA reached up to 19,000, while the MSCI index for both developing and developed markets increased by up to 3.6% for 2016 and could possibly hit its record highest yearly increase since 2013. Â

CBI’s Latest Industrial Trends Survey Showed an Increase on Manufacturing Orders But Remained to be Weak.  The manufacturing order books heightened although the export orders and economic growth eased within this month as indicated in the order results of the Industrial Trends Survey. The survey includes 430 manufacturers and assessed that the total order books restored its previous level which prevails during the whole period of summer and seen on top of the long-term average. Moreover, the orders for exports dropped down slightly but managed to sustain an above average result.  The volume for output made a slow growth which is about three months later. There is hope that the production for the upcoming quarter appeared to be in good shape yet its highest level was recorded last February 2015. In light of the steep decline of the sterling pound, manufacturers await for the possible extension of the average selling prices for the succeeding months. Â

Australia’s Mining Investments Fosters growth to Economy  Mining improves the economy of Australia with recovery of investments and increase in commodity prices. Furthermore, the high demand for Aussie boosts the economy specifically in Queensland and Western Australia since the inflation rates are going back to normal levels.  The unemployment rate has decreased since the peak in 2015 which also slowed down the population growth where the past reports saying it has improved were overstated . Nevertheless, this slow growth is not as bad as it shown a less than expected results.  On the bright side, it is the progress of trades mainly the pricing between imports and exports that gives a promising outlook for the mining investment and the increasing demand for money gives buoyancy in the economy.  Â

Thai Economy Slows Down as International Risks Increase, Investments Weaken  The economic growth of Thailand slowed down during the previous quarter due to a relative weakness in the performance of private investments which is now compelling the Thai government to increase spending in order to shield the economy from an increase in international risks as well as burgeoning political uncertainties in the region following the death of King Bhumibol. Thailand is now expected to deal with added volatility in the financial market due to the unexpected results of the US elections as well as the death of the Thai king. On the other hand, the military junta has already guaranteed assistance with regards to infrastructure as well as financial support for farmers.  Â