Company News by ForexMart

[Andrea ForexMart]

 

The current Money Fall contest has already started on September 25, 2017 and will end on September 29, 2017.

 

You can register for the next competition which will take place from October 2, 2017 to October 6, 2017.

 

Note:

Registration for the next competition finishes 1 hour before the contest starts.

[Andrea ForexMart]

 

Economic Calendar (September 26, 2017)

 

Know what will happen next in the financial markets with ForexMart's Forex Economic Calendar.

 

ForexMart's Forex Economic Calendar is a real-time, customizable, and multifunctional, forex tool that allows traders to be updated with the latest and most relevant market events. All information that could be potentially impact your trading will be listed and analyzed here.

 

A trader that knows more, profits more. Use ForexMart's Forex Economic Calendar and become a better trader today.

[Andrea ForexMart]

 

NZ Business Confidence Index Plunged After General Election

 

After the general election in New Zealand, the business confidence in the country has declined to its two-year low which is caused by the fears of manufacturers for a downturn.

 

Before the voting on September 23, the confidence index fell to zero against 18.3 last month as mentioned by ANZ Bank New Zealand on Tuesday.

 

More than three months passed after the survey of manufacturing companies issued a pessimistic forecast for business conditions within next year, higher by 2 percent in the earlier poll.

 

Moreover, the sector has the tendency to cut down hiring while respondents are expecting for a lower salary.

[Andrea ForexMart]

 

Qatar’s Imports Surged in August Despite of Sanctions

 

Imports of Qatar rose in value as it bounced off abruptly during the month of August compared to the earlier month as stated in the government data on Wednesday. This could mean that the economic impact of sanctions enforced by neighboring Arab nations is ebbing.

 

Previously imports dropped over a third in value after several countries including the United Arab Emirates, Saudi Arabia, Bahrain and Egypt which severed their diplomatic ties with Doha on June 5. However, this affected the shipping routes to Qatar as it closed the border of its country with Saudi Arabia where food and construction materials are being imported.

 

However, figures showed a sudden increase of 39.1 percent to 8.68 billion riyals or $2.38 billion last month as reported by the planning and statistics ministry. Although in contrast to the statistics from a year earlier, the imports were 7.8 percent lower exhibiting a big recovery compared to the levels for the month of June and July when it plunged greater than 35 percent last year.

[Andrea ForexMart]

 

Hurricanes to Slow Down US Economic Growth

 

The American economy improved slightly faster versus its earlier estimate during the Q2, this is the fastest growth recorded after two years. However, the progress could possibly slow down in Q3 brought by the blow of Hurricanes Harvey and Irma. The GDP rose at an annualized rate at 3.1 percent from the months of April to June, according to the Commerce Department on Thursday.

 

US economic status in the last quarter was considered the fastest since the Q1 of 2015, after the 1.2 percent progress from January to March. According to economists, the huge storms Harvey and Irma that hit Florida and Texas has the tendency to cutback six-tenths of GDP percentage point in the third quarter.

 

The home building, home sales,  industrial production, and retail sales dropped in August which was mainly blamed to hurricane Harvey. Moreover, the sluggish data is already expected in September due to the so-called ‘monster storm’ Irma. However, recovery plans are predicted to lift growth for the GDP in Q4 and also in 2018 earlier. The indications that show further improvement on business inventory investments could possibly ease down its effect towards the economy.

 

Other reports on Thursday states that the Commerce Department says, wholesale inventories grew by 1.0 percent for the month of August and 0.6 percent in July subsequently. While retailer’s inventories perked up by 0.7 percent and remained steady in July.  On one hand, the department added that goods trade deficit declined to 1.4 percent ($62.9 billion) last month, which led to an upside risk to growth forecast below 2.5 percent for the fourth quarter.

 

The aftermath of the previous storms Harvey and Irma continue to affect even the labor market which is projected to a weak growth on jobs for the current month. Based on the third readings of the Labor Department, the initial claims for unemployment insurance benefits rose to 12,000 according to a seasonally adjusted 272,000 for the week until 23rd of September. Furthermore, prices of long-dated U.S. Treasuries traded in a lower rung, and DXY weakened against another group of currencies.

[Andrea ForexMart]

 

The current Money Fall contest has already started on October 2, 2017 and will end on October 6, 2017.

 

You can register for the next competition which will take place from October 9, 2017 to October 13, 2017.

 

Note:

Registration for the next competition finishes 1 hour before the contest starts.

 

[Andrea ForexMart]

 

Asian Factories Improved Activity Before Shopping Season Begins

 

Large factories in Asia has been more active in September along with the rise in global growth with signs if a strong demand for manufactured goods which end the shopping season very well. Yet, some regional economies who are experiencing economic struggles keep the direction slightly bent as they need to implement softer monetary policy despite western countries have pushed back their stimulus.

 

The central bank of China has reduced the number of cash reserves for the first time since February 2016 which aims to make it more appealing for smaller lending companies and boost the stagnant private sector. The slowdown of their economy did not meet expectations even if they started the first half strongly. Although, they have plans of easing as they prepare ahead of the shopping season. This was supported by the official Purchasing Managers’ Index from China’s vast manufacturing sector whereby data shows a high demand in the previous month which have been the fastest rate since 2012.

 

However, the higher cost of raw materials has affected the performance of smaller companies which was exemplified in the separate private survey of factories indicating slowed growth for the month of September.

 

In Japan, the factory performance also accelerated at a quicker rate in four months because of strong demand in exports that affects the economic momentum despite the unchanged inflation rate. Moreover, the Bank of Japan reported that large manufacturers have gained more confidence in business situation over a decade, driven by the low value of yen and a strong global demand. Nevertheless, the BOJ plans to maintain their rates low.

 

Also, the Manufacturing business in South Korea grew at the fastest rate in less than two years.

 

Indonesia also demonstrated a rise in factory growth although at a slower rate and the production also declined. The country eased their interest rate twice this year hoping to improve the weak domestic consumption.

 

Yet, India cut its rates in August to stimulate growth and inflation.

 

Overall, it seems that these easing of the Asian nations is not really a major move but rather mere adjustments in policies compared to the Western countries as described by Rob Carnell, Asia’s head of research of ING.

[Andrea ForexMart]

 

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[Andrea ForexMart]

 

Russian Services Sector PMI Reached a Three-month High in Q3

 

The services sector in Russia rose at the fastest rate in three months to September amid higher demand in new orders and hiring according to the survey on Wednesday.

 

The Markit purchasing managers index (PMI) for the said sector increased to 55.2 in September from 54.2 in August. The figure stayed higher than the 50 mark which set apart increase from contraction since the second month of 2016. The survey showed a stronger output, new orders and high export demand boosted the manufacturing activity for the first time since August 2013.

 

Experts that derived the conclusion that both foreign and domestic clients pushed the high demand for new orders. At the same time, a good business environment contributed in improving the business confidence and adjust the anticipated output higher to an eight-month high.

 

The expansion of business since the end month of 2012 has been at the fastest rate that backed up the rise of employment growth. Moreover, the workforce has significantly increased at the swiftest rate since May 2013 as mentioned by an IHS Markit economist Sian Jones.

[Andrea ForexMart]

 

This week’s most popular deal:

 

 

Risk Warning: Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result to substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge and understand the risks relative to forex trading. Seek financial advice, if necessary.

[Andrea ForexMart]

Politically Impelled Depreciation of New Zealand Dollar

A decline in the local dollar is anticipated as warned by the leader of the small nationalist party which will determine the next government of the country following the uncertain outcome of the general election. The New Zealand dollar dropped to its lowest value since the latter part of May on Monday after the final counting of votes at the weekend which exhibits the opposition of the Labour-Green bloc leading paired against the ruling National party. Although, the National party occupies a greater number of seats.

After the final counting of numbers, there is a market speculation that the New Zealand first leader , WInston Peters, has to receive support from both parties to reach sufficient supporters to oversee the proportional representation system of the country and would be easier to work together along with the center-left Labour-Green bloc, inducing investors to sell their assets in New Zealand.

Peters negotiated with both Labour and National parties on Tuesday. He has previously served the ruling party headed by both political bodies. Once the election has ended, he was anticipated to publicize with the party would he be associated with on October 12. Yet,  reports from media say that he was not ready to announce his preferred coalition by Thursday and cannot decide if there will be an announcement on Friday.

The New Zealand currency plunged by 3.7 percent since the election on September 23rd. It reached a four-month low of $0.7052 on Monday then rose the following day traded at $0.7063.

Consequently, exporters will find this news a good event being an export-reliant nation as said by Winston Peters after its meeting with Labour when he was being interrogated about the depreciation of the currency.

The nationalist party supports the arbitration of the Reserve Bank of New Zealand in the foreign exchange market and the kiwi is ranked as 11th eleventh in the currency market in 2016. On the other hand, the Labour party supports some revisions in the mandate of the central bank related with inflation. The Labour party has more commonality with the protocols of NZ First and putting more pressure in the market regarding the changes in policies since the National has more control over 10 years. At the same time, both parties also favor the adjustments in immigration, foreign proprietorship, and renegotiation of some trade deals. Peters has not given any decisions but he mentioned that control in foreign ownership will be his focus on most of the talks.

[Andrea ForexMart]

 

World Bank Cuts Growth Projections in India

 

The Gross Domestic Product (GDP) of India may decline to 7.0 percent for this year versus 8.6 percent in 2015 due to concerns in demonetization and the Goods and Services Tax (GST). As per the forecast from the World Bank, controlled private investment brought by internal bottlenecks could impose downside pressure towards India’s potential growth.

 

On Wednesday, The International Monetary Fund (IMF) had revised lower the country's growth outlook at 6.7 percent in the current, this shows 0.5 percentage point lower than the two previous forecast and weaker than the 6.8 percent by China.

 

As indicated in the biannual economic update from South Asia Economic Focus, the economic development of India was greatly affected by the issues regarding the withdrawn banknotes and risks involving the GST. Therefore, resulting to an expected slow growth.

 

The growth could increase by 7.3 percent next year through implementing fair policies in balancing public expenditure with private investment. It is projected that sustained growth could lead to further poverty alleviation and more attention is necessary to help the informal economy gain benefits, according to a report issued prior the annual meeting of the World Bank and the IMF.

 

Moreover, the reduction on India’s economic growth also weighed down to South Asia, which resulted to a tip over the second rank followed by the East Asia and the Pacific.

 

On the other hand, both public and private expenditure have faster pace after the approval of the Seventh Central Pay Commission (7th CPC). And also because of the recovery in the rural demand subsequent to the agricultural impetus and normal monsoon. Meanwhile, the aggregate demand decline as public investment begin to weaken.

 

The bank mentioned that GST is forecasted to stall economic progress earlier next year, however, there is a tendency that momentum may raise. There are indications that shows manufacturing, post-GST and services could possibly decrease sharply.

 

The economic activity could sustain within a quarter in stabilizing the GDP rate at 7.0 percent in 2018.

[Andrea ForexMart]

 

Finance Minister Le Maire Confident for Optimistic French Economy

 

Finance Minister Bruno Le Maire is present in the conference with central bankers and Group of 20 finance ministers led by the International Monetary Fund. He met with JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and U.S. Treasury Secretary Steven Mnuchin on Thursday. During the meeting held in Washington,  Le Maire told officials his confidence towards the expected economic performance of France. Considering the determined behavior of Macron administration in implementing reforms. According to Le Maire, the main purpose of President Emmanuel Macron’s leadership is to give France a new and improved economy. There are different projections about French GDP but currently predicted to increase by 1.7 percent in 2017, which indicates the country’s strongest development after six years.

 

The French Ministry of the Economy and Finance reported the continuous expansion with the same pace in 2018,  however, the Finance Minister stated that it could possibly jump beyond official outlook.

 

After Macron’s five months in the position, he successfully put into effect complex labor laws reform which enables companies to have more flexible environment working period and implementation of job cuts. Moreover, the French leader began to discuss with associations and corporate groups the intention to revamp employee training and unemployment-insurance system.

 

The government also prepared the national budget for 2018 that will reduce taxes and public expenditures, Le Maire said.

[Andrea ForexMart]

 

This week’s most popular deal:

Risk Warning: Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result to substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge and understand the risks relative to forex trading. Seek financial advice, if necessary.

[Andrea ForexMart]

 

Trump Administration Pushes Fair Trade Relationship with Japan

 

The U.S. administration under Trump regime is aiming for a more levelheaded trade relationship with Japan as the prominent economic talks with the third largest Asian economy progressed this week in America, stated by U.S. Vice President Mike Pence.

 

During the second-round of meeting between U.S. and Japan, Pence left comments including discourse between the White House Cabinet members and highest rank Japanese government authorities. Pence has shown immense interest to free trade deals during talks but the Japanese government official did not give more details on this.

 

He also mentioned that the focus of this agreement is to guarantee the “free and fair trade” relationship particularly on trade and investment policies between the two countries. Both nations have initiated this talk in February and had their first course of talk in April. They have achieved initial progress in the second course of talks that includes the consensus to remove limitations on persimmons from Japan and potatoes from Idaho as mentioned to the statement given during Monday’s arbitration.

 

The automobile industry has also improved while Japan acquiesces to streamline noise and emission testing on car exports for the United States. Moreover, both nations will publish a statement related to energy concerns that include liquefied natural gas and coal while foreign exchange was not part of the discussion.

 

The U.S. President Donald Trump has been berating the mercantile trade deficit of their nation with Japan.although, this is just next in order to its gap with China amid the large volume of trade imports particularly on Japanese cars and electronics. The leader has clearly cited that he favors the bilateral trade deals and push it through to lessen trade disparity instead of multilateral agreements such as the Trans-Pacific Partnership which he ended as soon as he became the president of America.

 

Trump would meet the Japanese Prime Minister Shinzo Abe in his next trip to Asia next month and the interest on trade and economic ties will surely be of great concern. On part of the Japan, the Japanese delegates have pointed out the relevance of U.S. and Japanese diplomatic ties which significant in the background of threats posed by North Korea with the capital’s missile and nuclear programs.

 

A lot of businesses in U.S. aims to have a bilateral deal with Japan after their withdrawal from TPP that has greatly decreased the range of Japanese tariffs. This positions various U.S. companies at risk and they are on the downside compared to other countries who were still part of the agreement. On the other end, the Asian nation is open and hopeful to persuade the Western nation to be part once again of the TPP deal which was mediated over the years. This would be a stepping stone of the country to discuss topics on trade and investment rules as well as the Japanese investment on U.S. energy and infrastructure.

[Andrea ForexMart]

 

ECB Asset Purchases Refused by the Court of Germany

 

The appeal for an injunction to prevent the Bundesbank in participation to the asset purchase program of the European Central Bank has been turned down by the Constitutional court of Germany, according to the recent statement of the court. The program is worth 2.3 trillion euro or $2.7 trillion.

 

As observed previously, the German court was reticent when it comes to the asset purchases in the past. The ruling is now left in the hands of the European Court of Justice which has sided with the ECB when bond buying was put into question.

[Andrea ForexMart]

 

Fed Sees Modest to Moderate Growth in US Economy

 

The American economy had a modest to moderate pace of expansion in September until earlier in October. This occurred amid the hurricanes that hit the some U.S. regions, while the Fed stated that the latest readings of the US economy were issued yesterday, but still showed several hints of rising inflation.

 

Moreover, the Federal Reserve said that the surge of hurricanes Harvey and Irma happened during the polling period which might have an unfavorable effect towards the economic growth in third quarter. As the report shows three out 12 Fed’s districts, including Atlanta, Dallas, and Richmond, suffered from major disaster from the storms. The Fed Reserve of Dallas, particularly, Houston, was badly affected and did not anticipate for a critical disruption in the long-term.

 

Moreover, the report further underlined the Fed’s major issue which is the insufficient evidence for the increasing inflation amid the need of finding competent laborers.

 

Excess demands were very drastic in healthcare and service positions, construction, skilled manufacturing, and transportation. Hence, these shortages constrain the growth of the business, according to the Fed. Nevertheless, it failed to lift wages higher and further resulted in slight changes in the overall selling prices in some regions, indicating an increase in manufacturing input costs.

 

As for the Fed, there is nothing new about rumors on strong economic development and employment, however, there are widespread price pressures that followed which triggered probability that inflation will be fixed at the low level as the policymakers did not understand clearly the reasons behind.

 

The current target inflation of the Fed downgraded to 1.3 percent versus the initial objective at 2 percent. On the other hand, Fed Chair Janet Yellen is expecting inflation to bounce back while the central bank is in the process of raising interest rates again by the end of the year.

[Andrea ForexMart]

 

World Economy’s Best Performance in Ten Years Boosted by China

 

The strong economic development of China boosted the global economy that has been perking up on its most excellent performance in 10 years. The world’s second-largest economy announced on Thursday the expansion of 6.8 percent during the third quarter, after central bank governor Zhou Xiaochuan contemplated about the 7 percent pace for the second half over the weekend. Moreover, due to hints about the prospect of a sharp decline in 2018 could fade away, the economists of Goldman Sachs upgraded their projection by 6.5 percent increase next year.

Indications of growth were clearly seen in Asia on Thursday, as the central bank of South Korea further raise its economic growth outlook for the current year, and exports from Japan attained double digits for three months straight in September, while the unemployment rate in Australia reduced surprisingly.  The International Monetary Fund (IMF) has lifted its forecast for the United States, China, Europe, and Japan, stating that the global economy is performing at its fastest pace in a decade.

 

The Washington-based IMF predicted the world economy will expand by 3.6 percent in 2017 and 3.7 percent in 2018, showing growth of 0.1 percentage point against the earlier estimate, with the Asian region contributed 63.3 percent for the development.

 

The renewal of China’s import demand became the major support throughout Asia, coupled with the strong recovery in Asian exports to EU and US that made an upswing around the globe, according to chief Asia-Pacific economist Klaus Baader from Société Générale SA.

 

Also, Zhou mentioned that the impetus for China’s acceleration in the second half is derived from the household consumption which was indicated in the statistics issued yesterday. While the retail sales grew by 10.3 percent last month earlier this year. Aside from consumption, the Chinese data includes government expenditure that provided 64.5 percent growth from Q1 to Q3 of 2017 which shows 2.8 percentage points higher versus the same period in 2016.

[Andrea ForexMart]

 

This week’s most popular deal:

 

 

[Andrea ForexMart]

 

Unemployment Rate in France Drop in September

 

The total unemployment figures of France reduce in September based on the records from the Labour Ministry issued on Tuesday. This encourages French President Emmanuel Macron to execute further efforts to improve the job market.

The number of unemployed individuals in the mainland France was lowered down by 64,800 last month, this is the largest decrease since 1996.

The 1.8 percent drop after a month and 0.5 percent within a year resulted in a total of 3,475,600 jobless people which is the lowest level from the month of April.

The improvement was achieved due to reform efforts by Macron’s leadership that created more jobs and increased growth.

 

President Macron is considering the reduction of unemployment in the country down to 10 percent for years, overhauling the rules of labor industry last month. This could be followed by some changes in unemployment benefits and professional training subsequently.

The business confidence of France also perked up since Macron’s victory in May elections. The French politician pro-business reform agenda tend to shift company’s activities upwards in order to manage robust demand, according to a survey published on Tuesday morning.

Moreover, the emergence of new businesses led companies to hire additional workers in October which could regulate rising backlogs, hence, this is the fastest pace recorded in a decade based on the monthly purchasing managers survey.

 

On the other hand, industrial firms reported that their efficiency is moving towards the highest levels prior the outset of 2008-2009 global financial crisis indicated in a quarterly survey by the INSEE statistics agency on Tuesday. The expanding number of companies seems struggling to keep up with the demand. There are 32 percent of managers who admitted facing some congestion in the production system. This could be a positive indicator for the job markets considering that companies are forced to take more laborers in order to cope the demands of the client, therefore, reducing the unemployment rate.

[Andrea ForexMart]

 

US Economy Supported by Trade and Inventories

 

The American economy unanticipatedly sustained the rapid momentum in Q3, as the inventory investment increased and the smaller trade deficit eased off the impact from hurricanes towards the fall in consumer expenditure and curbed in construction.

 

The country’s GDP gained 3.0 percent at an annualized rate during the months of July until September, which further strengthened the robust business equipment spending as mentioned by the Commerce Department on Friday. While goods inventories for sale added nearly three-quarters of percentage point growth during the previous quarter and the improved GDP underlines the economic health. This excludes the inventory investment, the economy was able to advance by 2.3 percent rate against the slow down by 2.9 percent during the second quarter. The estimates for domestic demand also declined to 2.2 percent versus 3.3 percent obtained in Q2.

 

The United States acquired 3.1 percent growth during the second quarter, and this was the first time that the U.S growth reached higher than 3 percent for two consecutive quarters. Forecasts from economists show that GDP will increase by 2.5 percent in the third quarter. According to the US administration, it seems difficult to determine the effect of hurricanes Harvey and Irma towards the GDP in the third quarter. Initial evaluation indicates that the subsequent storms generated losses amounted to $US10.4 billion of government-owned fixed assets and  $US121.0 billion ($A157.8 billion) worth of privately owned fixed assets.

 

Inventories cumulated from firms came in at $US35.8 billion in the Q3, which boosted inventory investment by 0.73 percentage point to GDP growth in the said quarter. The inventories contributed an output of more than tenth of percentage point in the previous period. While economists are expecting for a decent expansion from inventories in the last quarter. Despite the drop in the fourth quarter and surpassed the sharpest decline in imports for three years which led to a smaller trade deficit and provided four-tenths of percentage point to economic development. Trade supported the output for three quarters in a row.

[Andrea ForexMart]

 

US Economy Supported by Trade and Inventories

 

The American economy unanticipatedly sustained the rapid momentum in Q3, as the inventory investment increased and the smaller trade deficit eased off the impact from hurricanes towards the fall in consumer expenditure and curbed in construction.

 

The country’s GDP gained 3.0 percent at an annualized rate during the months of July until September, which further strengthened the robust business equipment spending as mentioned by the Commerce Department on Friday. While goods inventories for sale added nearly three-quarters of percentage point growth during the previous quarter and the improved GDP underlines the economic health. This excludes the inventory investment, the economy was able to advance by 2.3 percent rate against the slow down by 2.9 percent during the second quarter. The estimates for domestic demand also declined to 2.2 percent versus 3.3 percent obtained in Q2.

 

The United States acquired 3.1 percent growth during the second quarter, and this was the first time that the U.S growth reached higher than 3 percent for two consecutive quarters. Forecasts from economists show that GDP will increase by 2.5 percent in the third quarter. According to the US administration, it seems difficult to determine the effect of hurricanes Harvey and Irma towards the GDP in the third quarter. Initial evaluation indicates that the subsequent storms generated losses amounted to $US10.4 billion of government-owned fixed assets and  $US121.0 billion ($A157.8 billion) worth of privately owned fixed assets.

 

Inventories cumulated from firms came in at $US35.8 billion in the Q3, which boosted inventory investment by 0.73 percentage point to GDP growth in the said quarter. The inventories contributed an output of more than tenth of percentage point in the previous period. While economists are expecting for a decent expansion from inventories in the last quarter. Despite the drop in the fourth quarter and surpassed the sharpest decline in imports for three years which led to a smaller trade deficit and provided four-tenths of percentage point to economic development. Trade supported the output for three quarters in a row.

[Andrea ForexMart]

 

This week’s most popular deal:

 

 

Risk Warning: Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result to substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge and understand the risks relative to forex trading. Seek financial advice, if necessary.

[Andrea ForexMart]

 

RBNZ Hold Official Rates Steady

 

Economists are expecting that the Reserve Bank of New Zealand will maintain its official cash rate at 1.75 percent upon the publication of its monetary policy statement scheduled on Thursday. However, the schedule of future hikes appears to be dull until the new policies of the Labour-led government were already established. Either way, the rate increase still does not have specified time in the future. Most likely, the hike will happen at the end of 2018 while forecasts from the central bank show that the raise will hit at the end of 2019.

An upward pressure is expected on local monetary policy, particularly on interest rates from foreign regions since the bank aims to ease off remaining artificially low rates since the Financial crisis of 2007–2008.

 

In the previous week, the BOE implemented a rate hike after 10 years, raising from 0.25 percent to 0.5 percent. The Fed Reserve is known to lift its rates twice in 2017 and maintained within the range of 1 to 1.25 percent, however, some comments opposing the market expectations affected the rates and tend to increase again this December. In October, the European Central Bank mentioned that it plans to reduce the level of bond purchases for each month along with the leading yields of US 10-year bond that recently acquired 2.4 percent. Cameron Bagrie, ANZ chief economist, spoke about the slightly higher international signals compared with local rates.

 

On the other hand, the financial markets are dealing with the future of new policy targets agreement (PTA) between the Reserve Bank and the Government. As indicated in the contract, the bank is obliged to maintain the next annual inflation within the average range of 1-3 percent in the medium term. Its focus is to manage future average inflation around the target midpoint of 2 percent. The employment intends to expand the deal in order to create an adequate level of labor rates as part of its objective while the political party  NZ First discussed the policy revision.

 

The total inflation for the year came in at 1.9 percent issued in September but new guidelines of the administration regarding wages and regional fuel taxes might influence prices to push higher. The greater-than-anticipated jobs figures last week highlighted a tighter labor market coupled with upside risks to inflation and surprised the RBNZ. The Reserve Bank explained that it anticipated for interest rate trends from overseas, especially from the US 10-year bond yield that serves as the major influence towards domestic rates.

 

On Friday afternoon, the Kiwi dollar was down to US69.2c as the head of NZ First Winston Peters declared a coalition agreement last October 19.

[Andrea ForexMart]

 

German Investor Confidence Rose According to Sentix

 

The German investors sentiment had increased, reaching its highest level for this month. The country is the largest economy in the eurozone that managed a global economic expansion based on the statement of Sentix issued on Monday. The survey was released since the EU obtained a fast-pace economic recovery subsequent to a prolonged period of slow economic growth, the development period was supported by the dynamic money-printing programme of the ECB. Moreover, this raises concerns regarding bond bubbles and property within the cluster of rich countries.

 

The economic sentiment index of Germany by the research group Sentix showed an upsurge of 42.4 versus 37.7 in October based on 1,000 investors who responded to the survey. Broader euro indices and the world economy arrive at 10-year highs.  European Sentix index gained 34 points in November compared with the 29.7 in October, overcoming analysts expectations and reaching its all-time high since July 2007 EUSTCS=ECI. Forecasts for other improvements of the European economy climb to 22.8 against 18.3 earlier.