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Yahoo Japan Surges as Profit Gets Boost from Ads, E-Commerce
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Yahoo Japan Corp. posted its biggest increase since 2013 after quarterly earnings easily topped estimates as profit was bolstered by the strong performance in advertising and online shopping from mobile phones.
The company's shares jumped as high as 17% intraday in Tokyo trading, hitting their daily upward limit. As of 10:35 a.m., the stocks were trading 15% up, adding around $3.4 billion in market value.
Operating income during the December quarter came in at 51.8 billion yen or $460 million, against the estimated 49.5 billion yen. Sales hit 221.4 billion yen, easily topping the 219.5 billion yen.
The strong financial results come amid the company's continued expansion into the mobile platform, which represented for over half of the total advertising revenue for the first time in the company's history. Online shopping via its auction service platform also strengthened its performance, thanks to strict cost management and higher spending by users. Its financial services business also posted a stronger than anticipated performance.
Analysts, who initially had doubts regarding its future performance have changed their view on its potential and sees sustainable growth for the company. Analyst at Cantor Fitzgerald Naoshi Nema upgraded the price target from 400 yen to 660 yen per share.
News are provided byInstaForex.
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Fxwirepro: Aussie falls Against Major Peers in Early Hours of Asia ahead of Rba’s Cash Rate Decision
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AUD/NZD is currently trading around 1.0442 marks.
Pair made intraday high at 1.0465 and low at 1.0439 marks.
Intraday bias remains slightly bearish till the time pair holds immediate resistance at 1.0507 marks.
A consistent close below 1.0458 will take the parity down towards key supports around 1.0412, 1.0370, 1.0326, 1.0237, 1.0184, 1.0109 and 1.0053 marks respectively.
On the other side, a sustained close above 1.0458 will drag the parity higher towards key resistances at 1.0507/1.0587/1.0618/1.0655/1.0751/1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.
Australia’s January AIG construction index increases to 47.7 vs previous 47.0.
RBA will release cash rate decision and monetary policy statements at 0330 GMT.
News are provided byInstaForex.
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Euro Weakens on Political Concerns, as Dollar Falls Against Yen
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The euro dropped to a one-week low versus the U.S. dollar on uncertainty regarding French politics prior to the presidential vote along with other upcoming elections in Europe. Investors eyed French politics, with far-right National Front leader Marine Le Pen launching her presidential bid, pledging to combat globalisation and withdraw France out of the eurozone.
In late trading, the euro weakened by 0.4 percent versus the US dollar to $1.0742. It fell to $1.0705, its weakest level since Jan. 31. The greenback fell to two-month lows versus the Japanese yen amid a decline in U.S. Treasury yields. The spread between U.S. two-year and Japanese two-year debt yields shrank to nearly 136 basis points, the narrowest in two months. The greenback last fell 0.7 percent at 111.81 yen, and had previously weakened to 111.63, its lowest since late November.
According to analysts, strong equity markets and upbeat U.S. economic data have supported the previous year's bullish U.S. dollar demands. However, the lack of clarity on expected pro-dollar-tax-and-spending-initiatives by the administration of U.S. President Donald Trump as well as concerns on the outlook of the dollar and global trade have weighed on the currency.
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Intraday technical levels and trading recommendations for EUR/USD for February 7, 2017
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In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010.
Hence, a long-term bearish target was projected toward 0.9450. In March 2015, EUR/USD bears challenged the monthly demand level around 1.0570, which had been previously reached in August 1997.
Later in April 2015, a strong bullish recovery was observed around the mentioned demand level.
However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.
In the longer term, the level of 0.9450 remains a projected target if the current monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0570.
Otherwise, the EUR/USD pair remains trapped within the depicted consolidation range (1.0570-1.1400).
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The long-term outlook for the EUR/USD pair remains bearish as the monthly chart illustrates. Bearish persistence below 1.0575 is needed to pursue this bearish scenario.
On November 14, bearish persistence below 1.0825 (Key-Level 2) allowed further decline toward 1.0570 (demand level) where evident bullish rejection was expressed on November 24.
Shortly after, the Fibonacci Level 50% (1.0825) constituted a recent supply level which offered a valid SELL entry on December 8.
Bearish persistence below the depicted demand level (1.0570) was expected to allow further decline toward 1.0220. However, significant bullish recovery was expressed around the price level of 1.0340 on January 3.
Bullish persistence above 1.0600 allowed further bullish advance toward 1.0825-1.0850 (Fibonacci Level 50%) where bearish rejection and a valid SELL entry were anticipated.
Bullish breakout above 1.0570-1.0600 was executed on January 12.
That is why, the price level of 1.0570 at the moment constitutes a recent demand level to be watched for the bullish rejection if any bearish pullback occurs.
More analysis - at instaforex.com
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Fxwirepro: South Korean Won Erases Previous Gain Against Euro, Faces Strong Resistance at 1,227
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EUR/KRW is currently trading around 1,223 mark.
Pair made intraday high at 1,224 and low at 1,218 levels.
Intraday bias remains slightly bullish till the time pair holds immediate support at 1,217 mark.
A consistent close below 1,218 will drag the parity down towards key supports around 1,210, 1,203, 1,199 and 1,163 marks respectively.
Alternatively, a sustained close above 1,218 will take the parity higher towards key resistances around 1,227, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.
Seoul shares open down 0.13 pct at 2072.58.
We prefer to take long position in EUR/KRW only above 1,227, stop loss at 1,218 and target of 1,235/1,242.
News are provided byInstaForex.
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Disney Posts Strong Quarterly Profit, Unexpected Revenue Drop
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Disney posted first-quarter profits that topped estimates, but revenue fell short of expectations.
In its quarterly earnings report, the company reported first-quarter earnings of $1.55 per share on a revenue of $14.78 billion. The figures denote a 3% annual decline in revenue and a 10% decline in per-share profit. Analysts anticipated the company to report earnings per share of $1.49 per share on a revenue of $15.26 billion. Profit was boosted by a 13% jump from Disney's theme parks across the globe.
Revenue in majority of its business segments also missed estimates, according to Disney. Disney's consumer products and interactive media segment cashed in around $1.48 billion revenue, missing estimates of $1.75 billion, as the segment faced toughed comparison to the success of franchises in the year-prior period.
Revenue for the firm's media networks business clocked in at $6.23 billion, under the estimated $6.42 billion. Operating income in the segment also fell 4% year-on-year. The lower-than anticipated revenue for October to December was weighed down by the decline in advertising revenue at ESPN and due to the movie business' performance compared to its record success a year earlier.
The stock was initially down 2% in extended trading, but reversed losses and was last trading 1.4% lower.
News are provided byInstaForex.
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Dollar Weakens as U.S. Treasury Yields Decline
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The dollar weakened after two days of gains, weighed down by the decline in U.S. Treasury yields amid market uncertainty regarding President Donald Trump's economic policies. U.S. benchmark 10-year Treasury note yields were down to a three-week low of 2.325 percent.
Trump is set to meet Japanese Prime Minister Shinzo Abe and the U.S. president is expected to reiterate his opposition to a firm dollar and a weak yen, which might further weigh on the greenback. The Japanese yen climbed, amid the unease surrounding global political risks in Europe, which eventually pulled down U.S. Treasury yields. The dollar index was down 0.2 percent to 100.27, as the US currency weakened by 0.3 percent to 112.05 yen. The euro edged higher versus the dollar from more than one-week lows. Its recent path has been tied to the developments regarding the French presidential elections.
The euro fell 0.3 percent versus the Japanese yen at 119.76 yen, and was higher by 0.1 percent against the dollar at $1.0687.
News are provided byInstaForex.
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Fxwirepro: Japanese Yen Marginally Lower Despite Higher Than expected Core Machinery Orders Data
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USD/JPY is currently trading around 112.11 marks.
It made intraday high at 112.13 and low at 111.73 levels.
Intraday bias remains neutral for the moment.
A daily close above 111.93 will take the parity higher towards key resistances around 112.54, 113.48, 113.96, 114.95, 115.61, 117.21, 118.18, 118.66, 119.52 and 120.46 levels respectively.
On the other side, a sustained close below 111.93 will drag the parity down towards key supports around 111.35, 110.85, 109.72, 106.72, 106.03 and 104.96 levels respectively.
Japan’s December machinery orders m/m increases to 6.7 % (forecast 3.1 %) vs previous -5.1 %.
News are provided byInstaForex.
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Wall Street Advances After Trump Promises Announcement on Taxes
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U.S. stocks rallied following U.S. President Donald Trump's promise to give an announcement on taxes in the next few weeks. The fourth-quarter earnings season has mostly been strong, as combined earnings of S&P 500 companies have climbed 8.3 percent, its highest in nine quarters.
The Dow Jones industrial average climbed 0.59 percent to finish at 20,172.40, as Nike led advances while Intel lagged behind. The S&P 500 rose 0.58 percent at 2,307.87, as financials led nine sectors higher and utilities and materials were the only decliners. The Nasdaq composite gained 0.58 percent to end at 5,713. Shares of Apple added 0.38 percent and was its largest driver. Eight of the 11 major S&P sectors traded higher.
Coca-Cola dropped 2.6 percent to $40.96 after the company forecasts a decline in full-year adjusted profit. The stock added the most pressure on the Dow and S&P. Shares of Twitter plunged ten percent after the website posted its slowest revenue growth since going public in 2013. Viacom was the largest gainer on the S&P, climbing 4.3 percent after its quarterly profit exceeded analysts' forecasts.
News are provided byInstaForex.
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Fxwirepro: Japanese Yen falls in Early Hours of Asia Despite Higher Than expected Ppi Data
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USD/JPY is currently trading around 113.72 marks.
It made intraday high at 113.79 and low at 113.22 levels.
Intraday bias remains bullish till the time pair holds key support at 112.64 marks.
A daily close above 113.22 will take the parity higher towards key resistances around 113.96, 114.95, 115.61, 117.21, 118.18, 118.66, 119.52 and 120.46 levels respectively.
On the other side, a sustained close below 113.22 will drag the parity down towards key supports around 112.64, 111.35, 110.85, 109.72, 106.72, 106.03 and 104.96 levels respectively.
Japan’s January corporate goods price y/y increase to 0.5 % (forecast 0.0 %) vs previous -1.2 %.
Japan’s January corporate goods price m/m stays flat at 0.6 % (forecast 0.2 %) vs previous 0.6 %.
BOJ increases purchase of superlong JGBs in Friday's operation.
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Japan GDP Adds 0.2% On Quarter In Q4
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Gross domestic product in Japan gained 0.2 percent on quarter in the fourth quarter of 2016, the Cabinet Office said on Monday.
That missed expectations for an increase of 0.3 percent, which would have been unchanged from the previous three months.
On a yearly basis, GDP gained 1.0 percent - also missing forecasts for 1.1 percent and down from 1.4 percent in the third quarter.
Nominal GDP was up 0.3 percent on quarter, shy of expectations for 0.5 percent and up from 0.2 percent in the three months prior.
The GDP deflator eased 0.1 percent on year - unchanged from the third quarter but beating estimates for a decline of 0.2 percent.
Private consumption was flat on quarter, matching forecasts and down from 0.3 percent in Q3. Business spending was up 0.9 percent on quarter, missing forecasts for 12 percent following the 0.3 percent decline in the previous three months.
Net exports, or shipments minus imports, added 0.2 percentage points to GDP.
The Japanese economy has expanded in four straight quarters, the first such streak in more than three years.
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Indian Government Bond Volatility Surges on RBI’s Unexpected Decision
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The Reserve Bank of India's policy making committee ruled to keep interest rates unchanged on Wednesday and shifted from an accommodating stance towards a neutral gear, catching investors and traders off-guard.
The unexpected decision caused India's 10-year yield to jump 31 bps on Wednesday and another 12 bps the following day as investors began to taper their bets for additional easing. A measure of 10-day volatility on noted has since risen to 26.7%, its highest since 2013 from the 4.6% on Thursday. Forex reserves of local government and corporate debt fell by 8.3 billion rupees or $124 million during the release of the policy statement, ending a six-day winning streak.
RBI's decision marks the third time that the panel has taken the route contrary to market expectations since it was established in October. It prompted a fivefold surge in bond volatility and caused benchmark notes to record the biggest lost in almost four years.
Authorities maintained borrowing costs despite stating that the economy was unlikely to rise beyond its inflation target of 5% in March. Consumer prices growth decelerated to 3.41% in December, the slowest since November 2014. RBI is eyeing 4% inflation through 2021 in the medium-term, while allowing it to move in a range between 2%-6%.
News are provided byInstaForex.
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Australia Business Confidence Picks Up Steam - NAB
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Business confidence in Australia gained momentum in January, the latest survey from National Australia Bank revealed on Tuesday with an index score of +10.
That's up from +6 in December, and it marks the highest reading in almost three years.
Business conditions also spiked in January with a reading of +16 - up from +10 and touching an almost 10-year high.
"These outcomes are certainly pointing to an improvement in the domestic economy after a soft patch through much of the second half of 2016," NAB chief economist Alan Oster said.
News are provided byInstaForex.
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Greek finance chief chides IMF for delaying bailout deal
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Greece's finance head lambasted the International Monetary Fund for wasting its time on internal disaccords, saying it defers a decision on their third rescue agreement.
Greek Finance Minister Euclid Tsakalotos urged the global institution to decide on its participation in the country's €86 billion ($91 billion) bailout package as he reiterated the latter's demands were anchored on wrong figures.
IMF Managing Director Christine Lagarde previously warned Greece won't secure a special sweet accord as she implied the international organization won't withdraw its demands for reforming pension and tax policies.
She said the IMF needs to apply the principles which they apply to all nations since they lend money to the international community. It is determined to avoid repeating events which led to the country's first and second rescue deals.
News are provided byInstaForex.
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Fxwirepro: Usd/sgd Consolidates Around 1.42 Mark, Bias Remains Neutral
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USD/SGD is currently trading around 1.4219 marks.
It made intraday high at 1.4232 and low at 1.4191 levels.
Intraday bias remains neutral till the time pair holds key resistance at 1.4250 marks.
A daily close above 1.4250 will test key resistances at 1.4297, 1.4409, 1.4506, 1.4568, 1.4686 and 1.4851 levels respectively.
Alternatively, a consistent close below 1.4200 will drag the parity down towards key supports at 1.4136/1.4083/1.3972/1.3819/1.3775/1.3704/1.3646 levels respectively.
Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.
News are provided byInstaForex.
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Gold Prices Lower After Yellen Hints Rate Hike
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Gold prices inched down on a higher dollar after U.S. Federal Reserve Chair Janet Yellen indicated a raise in interest rates in the upcoming meeting of the central bank. Spot gold dropped 0.24 percent to $1,225.20 an ounce and U.S. gold futures settled 0.11 percent higher at $1,226.7.
According to Yellen, the Federal Reserve will likely hike interest rates in the upcoming meeting, however she indicated uncertainty regarding economic policy under the administration of U.S. President Donald Trump. Yellen responded to claims on global regulatory talks and said that the Fed holds the authority and has the responsibility to consult with foreign counterparts in order to benefit the United States.
New York's SPDR Gold Trust GLD climbed 0.50 percent. The world's biggest gold-backed exchange-traded-fund (ETF) stated that it has been certified as shariah compliant. In an attempt to spur demand for bullion form investors in majority-Muslim countries.
News are provided byInstaForex.
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Australia January Unemployment Rate Dips To 5.7%
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The jobless rate in Australia came in at a seasonally adjusted 5.7 percent in January, the Australian Bureau of Statistics said on Thursday.
That beat forecasts for 5.8 percent, which would have been unchanged from the December reading.
The Australian economy added 13,500 jobs in January to 11,998,200, beating forecasts for 10,000 after collecting 13,500 jobs in the previous month.
Full-time employment decreased 44,800 to 8,125,700 and part-time employment increased 58,300 to 3,872,500.
"We are still seeing strong growth in part-time employment in January 2017, and in recent months, increasing growth in full-time employment," said the General Manager of ABS' Macroeconomic Statistics Division, Bruce Hockman.
The participation rate slipped to 64.6 percent, shy of expectations for 64.7 percent, which would have been unchanged.
Unemployment decreased 19,300 to 720,200. The number of unemployed persons looking for full-time work decreased 16,000 to 511,000 and the number of unemployed persons only looking for part-time work decreased 3,300 to 209,200.
Monthly hours worked in all jobs increased 10.2 million hours to 1,682.7 million hours.
News are provided byInstaForex.
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Yahoo and Verizon Nears Closing Revised Acquisition Agreement
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Verizon Communications Inc. is on the verge of brokering a revised agreement to takeover Yahoo's core internet segment, sources said.
The deal will be valued $250-$250 million less than the initially agreed price of $4.38 billion, according to people privy to the matter, as the internet group reportedly agreed to a price cut.
The deal was put cast under doubt last year after the internet company disclosed two massive cyber attacks which compromised the information and data of millions of its users. Verizon is looking to combine Yahoo's internet assets and ad tech tools with its AOL unit.
Since last year Verizon has been trying convince Yahoo to revise the sale terms agreement in order to mirror the economic damage from the cyber attacks. A source stated that the deal, which could be closed as early as this week, will the two parties sharing liability from possible lawsuits linked to the data breaches.
Reports of the renegotiated terms of the deal was first seen on Bloomberg. A source said the price cut was likely to be close to $250 million.
Shares of Yahoo advanced 1.5% to $44.69 in afternoon trading while Verizon shares edged down 0.7% $47.93.
News are provided byInstaForex.
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OPEC could prolong output curb pact if glut remains: sources
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OPEC could apply deeper cuts or prolong the production limit pact it struck with non-members should global oil inventories fail to hit its output goal, people familiar with the group disclosed.
Sources said participating nations must fully adhere with the deal and the expansion in crude demand will need to remain strong in order for global crude stockpile to decline by around 300 million barrels to the five-year average.
They added inventories will drop if everybody will adhere to the accord 100%. By around mid-year, sources noted it will reach close to the five-year median.
The oil cartel will gather on May 25 to determine on supply rules. Non-members are invited to participate in the meeting as well.
Last month, OPEC and non-OPEC members fulfilled 93% adherence with the committed cuts, with Saudi Arabia, the institution's de facto chief, contributing the largest portion.
News are provided byInstaForex.
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Fxwirepro: Kiwi falls Against Major Peers As New Zealand’s Retail Sales, Core Retail Sales Data Fail to Meet Expectations
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AUD/NZD is currently trading around 1.0670 marks.
Pair made intraday high at 1.0675 and low at 1.0655 marks.
Intraday bias remains bullish till the time pair holds immediate support at 1.0634 marks.
A daily close below 1.0662 will take the parity down towards key supports around 1.0594, 1.0552, 1.0516, 1.0460, 1.0412, 1.0370, 1.0326, 1.0237, 1.0184, 1.0109 and 1.0053 marks respectively.
On the other side, a sustained close above 1.0662 will drag the parity higher towards key resistances at 1.0735/1.0754/1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.
New Zealand’s Q4 s/adj real retail sales +0.8 pct q/q.
New Zealand’s Q4 s/adj actual retail sales +4.2 pct y/y.
New Zealand’s January month s/adj PMI 51.6.
News are provided byInstaForex.
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UK House Prices Rise 2.0% In February
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The average asking price for a house in the United Kingdom was up 2.0 percent on month in February, the latest survey from property tracking website Rightmove showed on Monday.
That was roughly in line with estimates, and up from 0.4 percent in January.
On a yearly basis, house prices were up 2.3 percent - shy of forecasts for 2.8 percent and down from 3.2 percent in the previous month.
News are provided byInstaForex.
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CNPC Purchases Stake in $22 Billion Oil Venture from Abu Dhabi
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China National Petroleum Corp. purchased a stake in Abu Dhabi's biggest oil concession as the emirate, which holds six percent of global crude reserves, resorts to Asia for investment in order to increase output capacity. Abu Dhabi National Oil Co. granted CNPC an eight percent stake in its onshore venture in exchange for a $1.8 billion signing bonus, according to Adnoc.
CNPC will join the Abu Dhabi firm for the Onshore Petroleum Operations, or ADCO. Other companies like BP and Total respectively hold ten percent stakes in the venture, while South Korea's Energy Corp. owns three percent and Inpex Corp. of Japan holds five percent. Abu Dhabi is planning to keep a 60 percent stake in ADCO and is looking for an investor for the remaining four percent, according to a statement from Adnoc.
Abu Dhabi intends to raise production capacity to 3.5 million barrels per day by 2018. ADCO produces nearly half of Abu Dhabi's approximately three million barrels of daily crude output.
News are provided byInstaForex.
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Announcement: Moody's: Singapore Banks' Under Cost and Net Interest Margin Pressures, But Should Subside in 2017
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Moody's Investors Service says that the full year and Q4 2016 (October-December 2016) financial results of the three largest banks in Singapore by assets reveal a further decline in profitability and mixed asset quality performance, but pressure on credit costs and net interest margins (NIMs) should subside in 2017, providing support to profitability.
"The continued asset quality challenges at DBS Bank Ltd. (DBS, Aa1/Aa1 stable, a1) and Oversea-Chinese Banking Corp Ltd (OCBC, Aa1/Aa1 stable, a1) are in line with our expectations, and were mainly driven by their exposures to the embattled oil & gas service industry," says Eugene Tarzimanov, a Moody's Vice President and Senior Credit Officer.
"By contrast, asset performance at United Overseas Bank Limited (UOB, Aa1/Aa1 stable, a1) has improved, and was better than we had expected, driven by fewer new nonperforming loans (NPLs) related to the oil & gas industry, as well as recoveries and write-offs," adds Tarzimanov.
Moody's conclusions were contained in a just-released report on banks in Singapore, "Banks - Singapore: Full Year and Q4 2016 Results Reflect Mixed Asset Quality and Lower Profitability".
Moreover, return on assets continued to decline for the three banks in 2016, due to elevated credit costs and weaker revenue growth, with revenue pressured by NIM compression. The banks' asset quality and profitability challenges were key drivers behind our downgrade of their baseline credit assessments in December 2016.
"Despite these challenges, the three banks' loss-absorption buffers have remained robust; specifically, they recorded higher fully loaded Common Equity Tier 1 ratios (CET1) during 2016 — due to slow growth in risk-weighted assets (RWAs) — which provide support to their very high credit ratings," says Tarzimanov.
While we expect asset quality challenges posed by the troubled oil & gas service companies to persist over the next few quarters, we note that new non-performing asset formation rates fell in Q4 2016 from their peaks in Q2 2016, signaling a potential stabilization in asset quality metrics for the banks in 2017.
Furthermore, even if oil market conditions deteriorate, we see the banks as more resilient in coping with such a situation, because many weak firms in the oil and gas service industry have either already defaulted, or restructured their liabilities. The banks had also mostly trimmed their exposure to oil & gas service companies during 2016, and related loans now represent only 2% of their total loans.
Outside their oil & gas exposure, the quality of the banks' remaining loan portfolio, including their regional exposures, was fairly stable in 2016.
As for events overseas that will affect the banks, we expect around three interest rate increases by the US Federal Reserve Board in 2017. This development will have a pass-through effect on interest rates in Singapore through the currency channel. According to the banks in Singapore, the pass-through effect could be in the 40%-60% range.
Capital strengthening measures — such as the application of scrip dividend schemes where shareholders receive shares instead of cash dividends — will also help the banks maintain their current capital levels. We note that DBS and UOB will offer scrip dividends for 2016.
Moreover, the banks have indicated that the incremental increase to RWAs resulting from the impending changes to Basel regulatory rules (Basel 3.5) would be fairly small. DBS and OCBC have indicated that the changes will result in an increase in RWAs of around 2%-4%, while UOB has put the impact at less than 1%.
News are provided byInstaForex.
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Toshiba Eyes $8.8 Billion in Chip Unit Stake Deal
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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.
News are provided byInstaForex.
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Fxwirepro: Eur/krw Hovers Around Key Support at 1,200 Mark, sustained Close Below Targets 1,184
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EUR/KRW is currently trading around 1,201 mark.
Pair made intraday high at 1,202 and low at 1,199 levels.
Intraday bias remains neutral till the time pair holds key support at 1,200 mark.
A daily close below 1,200 will drag the parity down towards key supports around 1,184, 1,178 and 1,163 marks respectively.
Alternatively, a sustained close above 1,200 will take the parity higher towards key resistances around 1,209, 1,221, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.
Seoul shares open up 0.17 pct at 2106.42.
We prefer to take short position in EUR/KRW only below 1,200, stop loss at 1,210 and target of 1,190/1,184.
News are provided byInstaForex.
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Gold Steady as Investors Await for Clues on U.S. Rate Hikes
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Gold prices were steady on the latest weaker-than-expected U.S. data, after dropping one percent on restored expectations of U.S. interest rate hikes in March that pushed the dollar higher. Spot gold was stable at $1,236 per ounce while U.S. gold futures settled 0.1 percent lower at $1,237.
Traders are currently eyeing the release of minutes from the Federal Reserve's Jan. 30-Feb. 1 meeting. President Donald Trump's address to the Congress on Feb. 28, will also be eyed as analysts and traders hope that it will provide more details on infrastructure spending and tax cuts. "Gold is capped by the likelihood that U.S. monetary policy will be tighter at some stage, potentially in March," according to Societe Generale analyst Robin Bhar. Switzerland's gold exports reached a 10-month low in January, as stated in the data from the Swiss customs bureau, due to declines in shipments to China and Hong Kong.
In other metals, silver dropped 0.4 percent to $17.94 per ounce. Platinum shed 0.3 percent to $997.95 while palladium climbed 0.6 percent to $776.75.
News are provided byInstaForex.
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Fxwirepro: Aussie falls Against Major Peers As Australia’s Private Capital Expenditure Data Fails to Meet Expectations
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AUD/NZD is currently trading around 1.0673 marks.
Pair made intraday high at 1.0721 and low at 1.0673 marks.
Intraday bias remains bearish till the time pair holds immediate resistance at 1.0748 marks.
A daily close below 1.0710 will take the parity down towards key supports around 1.0648, 1.0594, 1.0552, 1.0516, 1.0460, 1.0412, 1.0370, 1.0326, 1.0237, 1.0184, 1.0109 and 1.0053 marks respectively.
On the other side, a sustained close above 1.0710 will drag the parity higher towards key resistances at 1.0735/1.0823/1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.
Australia’s Q4 capital expenditure increases to -2.1 % (forecast -0.4 %) vs previous -3.3 % (revised from -4 %).
Australia’s Q4 building capex decreases to -4.1 % vs previous -3.6 % (revised from -5.7 %).
Australia’s Q4 plant/machinery capex increases to 0.4 % vs previous -3 % (revised from -1.9 %).
News are provided byInstaForex.
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Dollar Recovers After Initial Fed Minutes Jolt
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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.
News are provided byInstaForex.
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Singapore Industrial Production On Tap For Friday
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Singapore will on Friday release January figures for industrial production, highlighting a light day for Asia-Pacific economic activity.
Output is expected to gain 2.8 percent on month and 7.5 percent on year after spiking 6.4 percent on month and 21.3 percent on year in December.
Taiwan will see January figures for unemployment, with the jobless rate expected to ease to 3.8 percent from 3.82 percent in December.
News are provided byInstaForex.
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Trump Uncertainty Drives Bitcoin to Historic High
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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.
News are provided byInstaForex.
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Australia Q4 Company Operating Profits Soar 20.1%
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Company operating profits in Australia climbed a seasonally adjusted 20.1 percent on quarter in the fourth quarter of 2016, the Australian Bureau of Statistics said on Monday.
That easily beat forecasts for an increase of 8.0 percent following the 1.0 percent gain in the previous three months.
Profits spiked 26.2 percent on year.
Company inventories gained just 0.3 percent on quarter in Q4, shy of expectations for 0.5 percent and down from 0.8 percent in the three months prior.
Inventories were up 1.6 percent on year.
Sales of manufacturing goods and services added 0.1 percent on quarter but fell 2.4 percent on year.
Sales in wholesale trade gained 3.1 percent on quarter and 9.0 percent on year.
Wages and salaries dipped 0.5 percent on quarter but climbed 1.0 percent on year.
News are provided byInstaForex.
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Samsung Hints at Release of Galaxy S8 Release
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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.
News are provided byInstaForex.
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Fxwirepro: South Korean Won Marginally Higher Against Euro on Robust Manufacturing Bsi Index
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EUR/KRW is currently trading around 1,197 mark.
Pair made intraday high at 1,199 and low at 1,197 levels.
Intraday bias remains bearish till the time pair holds key resistance at 1,205 mark.
A daily close below 1,198 will drag the parity down towards key supports around 1,191, 1,184, 1,178 and 1,163 marks respectively.
Alternatively, a sustained close above 1,198 will take the parity higher towards key resistances around 1,205, 1,221, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.
Seoul shares open up 0.08 pct at 2087.26.
South Korea’s BOK manufacturing BSI index increases to 79 vs previous 78.
We prefer to take short position in EUR/KRW around 1,199, stop loss at 1,205 and target of 1,184.
News are provided byInstaForex.
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Dow Jones closes at 12th consecutive record high
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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.
News are provided byInstaForex.
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Myanmar Manufacturing PMI Jumps To 51.9 - Nikkei
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The manufacturing sector in Myanmar continued to expand in February, and at a faster rate, the latest survey from Nikkei showed on Wednesday with a manufacturing PMI score of 51.9.
That was up from 51.7 in January, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, the growth was spurred by solid growth of output and new work although optimism weakened to a survey-record low.
The exchange rate fluctuations contributed to another steep rise in input costs.
News are provided byInstaForex.
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Australia Has A$1.302 Billion Trade Surplus
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Australia had a seasonally adjusted merchandise trade surplus of A$1.302 billion in January, the Australian Bureau of Statistics said on Thursday.
That was shy of expectations for a surplus of A$3.80 billion and was down from A$3.334 billion in December.
Exports were down 3.0 percent on month to A$31.796, while imports advanced 4.0 percent to A$30.494 billion.
News are provided byInstaForex.
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Yahoo executives familiar with 2014 hack prior to Verizon deal
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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.
News are provided byInstaForex.
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China Services PMI Falls To 52.6 In February - Caixin
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The services sector in China continued to expand in February, although at a slightly slower pace, the latest survey from Caixin showed on Friday with a PMI score of 52.6.
That was down from 53.1 in January, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
The composite index also checked in at 52.6, up from 52.2 in the previous month.
Individually, new business picked up, while employment also expanded but at a slower pace.
Inflationary pressures continued to ease, while business sentiment ticked slightly higher.
News are provided byInstaForex.
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Dollar Firms as Investors Price in March Fed Hike
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The dollar maintained its strength on Friday as the rising probability of a U.S. interest rate hike hurt appetite for sovereign bonds and commodities.
The dollar held broad gains at 114. 28 yen and bordered a peak of 114.95 versus the Japanese currency. A dollar index slipped by a fraction to 102.070 after hitting its peak level since January 11.
Hawkish remarks echoed by several influential Fed officials caused the implied probability of a move from the U.S. central bank to further tighten monetary policy during a policy meeting on March 14-15 to shoot up to 74 percent, from just 30 percent at the beginning of the week.
Market participants are expected to closely observe Fed Chair Janet Yellen and Vice Chair Stanley's speeches later on Friday whether they will reiterate the hawkish stance. But traders are already expecting the top Fed officials to stick to the same tune.
Analysts said that the markets are now locking on their bets, with the assumption that a rate hike “soon” can be as early as this March and that perhaps 3 rate hikes will be seen this year, in line with Fed's set pace of rate increases.
The rise in the greenback hurt demand for commodities which are usually traded in dollar terms.
News are provided byInstaForex.
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Fxwirepro: Eur/krw Hits Fresh 4-Week High at 1,225 Mark, Faces Strong Resistance at 1,228
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EUR/KRW is currently trading around 1,224 mark.
Pair made intraday high at 1,225 and low at 1,219 levels.
Intraday bias remains bullish till the time pair holds key support at 1,221 mark.
A daily close below 1,221 will drag the parity down towards key supports around 1,207, 1,199, 1,191, 1,184, 1,178 and 1,163 marks respectively.
Alternatively, a sustained close above 1,221 will take the parity higher towards key resistances around 1,228, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.
Seoul shares open down 0.27 pct at 2073.20.
South Korea’s February FX reserves increase to 373.91 bln $.
We prefer to take short position in EUR/KRW around 1,225, stop loss at 1,235 and target of 1,205.
News are provided byInstaForex.