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Hong Kong Private Sector Expands In September - Nikkei





The private sector turned to expansion in September, the latest survey from Nikkei revealed on Friday with a PMI score of 51.2.


That's up from 49.7 in August, and it moves above the boom-or-bust line of 50 that separates expansion from contraction.


Individually, the index was boosted by renewed growth in new orders and output, although firms remain pessimistic about business outlook.


Supply shortages helped to drive up input costs.


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Gold Steady Ahead of U.S. Payrolls Data





Gold prices were steady on Friday ahead of the release of the U.S. jobs data later in the day, with prices being restrained from moving upwards as the dollar stood near a seven-week peak.


Spot gold was flat at $1,268.52 per ounce. It fell 0.5 percent the session earlier.


U.S. gold futures for December delivery dropped 0.2 percent at $1,270.90 an ounce.


The number of Americans filing for jobless benefits dropped more than expected last week, but the sustained impact of Hurricanes Harvey and Irma on the data made it difficult to get a definite picture of the labour market.


According to Kansas City Fed President Esther George, the Federal Reserve will need to hike U.S. interest rates further in order to keep the economy on course to full employment and the central bank's two percent inflation goal.


Expectations of monetary tightening were also backed by Philadelphia Fed Bank President Patrick Harker saying he was still expecting one more rate hike this year and three next year.


UBS trimmed its average forecast for the precious metal for this year to $1,270 from $1,300 taking into account the likelihood of a December rate hike weighing on the market, metals strategist Joni Teves said.


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New Zealand Dollar Tumbles to 4-Month Low amid Government Discussions





The New Zealand dollar plunged to a four-month low following the release of a final vote count for the nation's general election, which failed to name the winner.


The small nationalist New Zealand First Party continues to be main power after the final count revealed that the governing National Party lost some ground against the center-left Labour-Green bloc, compared with the preliminary tally announced on the Sept. 23 poll day.


The New Zealand currency dropped to $0.7060 when markets opened on Monday, its weakest since early June from $0.7090 on Friday evening. It stood at $0.7066 during midday.


NZ First continued negotiations on Monday with both the Labour and National, as it awaits its self-imposed deadline of Oct. 12 to announce which party it would support.


According to Imre Speizer, head of NZ strategy at Westpac, “it remains unclear which way NZ First will swing, and when it will announce its intentions”. As a result, “the election-related uncertainty hanging over NZD markets is likely to persist until the composition of the government is announced.”


Con Williams, economist at ANZ Bank, says “the downward bias for the NZD will likely continue following the tallying of the final vote count”.


The Labour and New Zealand First hopes to hold down immigration, renegotiate particular trade deals and adjust the role of the central bank.


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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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Philippine Trade Deficit Widens In August





Philippine foreign trade deficit increased in August from a year ago, as imports grew faster than exports, preliminary figures from the Philippine Statistical Authority showed Tuesday.


The trade deficit climbed to $2.41 billion in August from $2.13 billion in the corresponding month last year. In July, the shortfall was $1.62 billion.


Exports grew 9.3 percent year-over-year in August and imports advanced by 10.5 percent.


Shipments of electronic products, accounting for 51.9 percent of total exports, rose by 3.5 percent.


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Gold Prices Climb but Strong Dollar Pares Gains





Gold prices rose to their highest in over a week on Tuesday, but the gains were limited as the dollar held firm, supported by expectations of another Federal Reserve interest rate increase in 2017.


Spot gold climbed 0.2 percent to $1,286.42 per ounce, notching its highest since Sept. 29.


U.S. gold futures for December delivery rose 0.3 percent to $1,288.90 an ounce.


The precious metal's prices rebounded after declining for a fourth consecutive week to a two-month low on Friday, after the release of a solid reading of U.S. wage growth and unemployment, which pushed the greenback and Treasury yields higher.


Latest data showed that speculators trimmed their bullish stance in COMEX gold and silver contracts for the third consecutive week, in the week to Oct. 3.


"For the time being, gold may have bottomed out," ABN Amro analyst Georgette Boele said. Expectations for a Fed rate hike, Boele said, are still adding pressure on gold, which, as a non-yielding asset, tends to suffer as interest rates increase.


China's central bank held off from adding to gold reserves for an 11th straight consecutive month in September, recent data revealed.


The dollar was steady on Tuesday after pulling back from a 10-week peak overnight, bolstered by underlying expectations that improved prospects for the U.S. economy would compel the Federal Reserve to hike interest rates by December.


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PERU: Government Signs US$ 200 Million Exploration Contracts With Anadarko





The Peruvian government has signed three oil exploration and exploitation contracts evaluated at US$ 200 million. The contracts involve the state-owned oil company PeruPetro and the U.S. company Anadarko, that will jointly develop offshore blocks on the western Pacific coast.


"In Peru, we have been slow in oil policy in the last 30 to 40 years, with contracts difficult to execute, and we are trying to improve it," said Peruvian President Pedro Pablo Kuczynski.


He also stressed that this is the first time that deepwater hydrocarbon exploration will occur in the country.


The three blocs range the provincial coasts of Chiclayo, Chep?n, Pacasmayo, Ascope, Trujillo, and Vir?.


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Gold Prices Climb on Weaker Dollar





Gold prices increased for a fourth day on Wednesday, after notching a two-week peak in the session earlier, as the dollar weakened.


Spot gold rose 0.2 percent at $1,290.56 per ounce. It hit its highest level since Sept. 27 in the session earlier.


U.S. gold futures for December delivery was flat at $1,293 an ounce.


The dollar weakened against its peers and pulled back from a 10-week peak set recently amid speculation that U.S. President Donald Trump's tax overhaul plan would stall. A firm euro also weighed on the greenback.


Fed funds futures showed that traders implied almost a 90 percent likelihood of a December rate hike.


"The only news holding down the price of course are the impending rate hikes from the Federal Reserve but if these political issues grow much worse you can bet that $1,300 will not be the top," according to Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York, citing concerns surrounding Spain and North Korea.


The London Metal Exchange sees three more clearing members to join its precious metals contract by the end of 2017 and is also looking to expand trading around its gold and silver reference prices, Chief Executive Matthew Chamberlain said.


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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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Fed Minutes show Policymakers’ Support for December Rate Hike





The minutes of the Federal Reserve meeting on September 19-20 showed that members of the FOMC had a prolonged discussion regarding the prospects of inflation's growth and slowing the rate of future interest rate hikes if it failed to pick-up.


Record of the most recent policy meeting showed that Fed officials see the economy growing at a steady rate. The minutes also show that policymakers expect inflation will reach the targeted 2 percent, with FOMC members anticipating that factors weakening inflation are temporary.


Several members said that they would focus on the incoming inflation data over the next few months when deciding regarding the future of interest rate moves.


It also indicated that an interest rate hike later this year is almost certain, despite some divisions regarding the outlook for the direction of inflation. According to the summary of the meeting, many members thought that another rate hike in the target range later this year, presumably in December, was likely to be warranted if the medium-term outlook continued to be unchanged.


In the end, the FOMC ruled against an interest rate hike at the meeting, choosing instead to announced that in October it would start to reduce its massive balance sheet, which will be done by allowing small part of the proceeds from its maturing bonds to roll off.


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