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GMC GROUP FOR INDUSTRIAL COMME   1.29        Telecom Egypt   11.48        Modern Company For Water Proof   1.03        Ismailia Misr Poultry   2.45        El Arabia for Investment & Dev   0.34        Egyptian Real Estate Group   6.85        Pioneers Holding   2.84        Ezz Steel   7.86        Orascom Telecom Holding (OT)   3.92        Rakta Paper Manufacturing   4.39        Egyptian Iron & Steel   6.87        Naeem Holding   0.19        Misr Chemical Industries   5.65        Egyptians Housing Development    1.94        United Arab Shipping   0.43        Universal For Paper and Packag   4.94        Northern Upper Egypt Developme   4.93        Canal Shipping Agencies   7.39        Egyptian for Tourism Resorts   0.69        Modern Shorouk Printing & Pack   7        Upper Egypt Contracting   0.8        Egyptian Financial Group-Herme   7.42        Orascom Construction Industrie   240.82        Heliopolis Housing   21.65        United Housing & Development   8.93        Raya Holding For Technology An   4.57        International Agricultural Pro   2.1        Gulf Canadian Real Estate Inve   18.08        Alexandria Pharmaceuticals   45.71        Arab Cotton Ginning   2.46        Egyptian Chemical Industries (   7.26        National Real Estate Bank for    11.84        National Development Bank   6.72        Six of October Development & I   15.03        Oriental Weavers   20.66        Arab Gathering Investment   16.29        Egyptians Abroad for Investmen   2.75        Palm Hills Development Company   1.61        Credit Agricole Egypt   9.04        Remco for Touristic Villages C   2.13        Commercial International Bank    29.87        El Ezz Porcelain (Gemma)   1.9        Egyptian Starch & Glucose   5.4        Arab Real Estate Investment (A   0.41        South Valley Cement   3.12        Citadel Capital - Common Share   2.5        Rowad Tourism (Al Rowad)   5.05        Union National Bank - Egypt "    3.25        Ceramic & Porcelain   2.88        El Nasr Transformers (El Maco)   4.78        Egyptian Media Production City   2.31        GB AUTO   27        Sharkia National Food   3.78        Egyptian Transport (EGYTRANS)   7.85        El Kahera Housing   4.97        El Shams Housing & Urbanizatio   2.45        Egyptian Kuwaiti Holding   0.7        ARAB POLVARA SPINNING & WEAVIN   2.11        Cairo Poultry   8.32        Egyptian Financial & Industria   8        T M G Holding   4.03        Asek Company for Mining - Asco   10.66        Misr Hotels   27        Egyptian Electrical Cables   0.56        Medinet Nasr Housing   22.51        Mena Touristic & Real Estate I   1.21        ELSWEDY CABLES   18        Al Arafa Investment And Consul   0.17        Prime Holding   0.91        Alexandria Spinning & Weaving    0.74        General Company For Land Recla   16.6        Gharbia Islamic Housing Develo   8.41        Alexandria Cement   8.9        Arab Valves Company   0.94        Sidi Kerir Petrochemicals   12.4        TransOceans Tours   0.09        Egyptian for Developing Buildi   6.43        Egyptian Gulf Bank   1.24        Kafr El Zayat Pesticides   18.19        Faisal Islamic Bank of Egypt -   35.1        National company for maize pro   11.86        Delta Construction & Rebuildin   4.03        Zahraa Maadi Investment & Deve   48.25        Samad Misr -EGYFERT   3.52        Egypt for Poultry   1.41        Cairo Development and Investme   11.7        Cairo Pharmaceuticals   20.1        Maridive & oil services   0.9        Suez Canal Bank   3.75        Nile Pharmaceuticals   15.81        The Arab Dairy Products Co. AR   73.85        National Housing for Professio   14.39        El Ahli Investment and Develop   4.87        Egyptian Saudi Finance Bank   10.79        Ismailia National Food Industr   5.16        National Societe Generale Bank   25.52        Acrow Misr   19.16        Alexandria Mineral Oils Compan   63.63        Paper Middle East (Simo)   5.59        Egypt Aluminum   12.31        Giza General Contracting   13.12        Middle Egypt Flour Mills   5.82        Extracted Oils   0.6        Assiut Islamic Trading   4.56        Engineering Industries (ICON)   3.95        North Cairo Mills   15.3        Arab Pharmaceuticals   11.88        Grand Capital   5.38        El Ahram Co. For Printing And    10.68        Minapharm Pharmaceuticals   25.49        El Arabia Engineering Industri   13.52        El Nasr For Manufacturing Agri   9.71        Naeem portfolio and fund Manag   1.7        Faisal Islamic Bank of Egypt -   6.76        Natural Gas & Mining Project (   68.26        Housing & Development Bank   13.95        East Delta Flour Mills   31.5        Orascom Development Holding (A   3.22        Memphis Pharmaceuticals   11.12        Abou Kir Fertilizers   134.23        Delta Insurance   5        Cairo Investment & Real Estate   12.18        Cairo Oils & Soap   12.98        Egyptian Arabian (cmar) Securi   0.36        Egyptian Real Estate Group Bea   15.56        Alexandria Containers and good   85.51        Upper Egypt Flour Mills   45.78        Development & Engineering Cons   9.94        Sinai Cement   15.18        Medical Union Pharmaceuticals   28.01        Torah Cement   24.2        Alexandria New Medical Center   46.55        Export Development Bank of Egy   5.04        Egyptian Company for Mobile Se   92.02        Middle & West Delta Flour Mill   32.7        El Kahera El Watania Investmen   4.18        Mansourah Poultry   12.41        Delta Sugar   11.04        Misr Beni Suef Cement   41.21        Egyptian Satellites (NileSat)   6.14        Cairo Educational Services   17.75        Lecico Egypt   7.55        Sharm Dreams Co. for Tourism I   5.3        General Silos & Storage   10.77        Al Moasher for Programming and   0.66        UTOPIA   5.28        Arab Ceramics (Aracemco)   25.4        Barbary Investment Group ( BIG   0.98        

Money Markets - World

Amwal Al Ghad English - 2016-09-27 08:01:55
European stock markets were higher in morning trade on Tuesday with global sentiment buoyed by the U.S. presidential debate where Hillary Clinton appeared to gain momentum over Donald Trump. The pan-European Euro Stoxx 600 Index was higher with all sectors and major bourses in positive territory following selling in the previous session. Investors were reacting to the first televised debate between U.S. presidential nominees Hillary Clinton and Donald Trump on Monday night. Clinton appeared to have edged out her Republican opponent based on analysts' take on the initial market reaction. "The Mexican peso has been the market's whipping boy for fears about a Trump presidency, and as such the spike higher overnight post debate would suggest that Clinton emerged in the markets' eyes, though as opinion polls emerge over the next few days, this may change," Marc Ostwald, a strategist at ADM Investor Services, said in a morning note. More»
Amwal Al Ghad English - 2016-09-26 08:12:18
Asian stock markets were lower Monday, with sentiment this week likely to be dominated by the first U.S. presidential debate, as well as an upcoming informal meeting of OPEC producers. In Australia, the ASX 200 finished flat at 5,431.40, with the heavily-weighted financial sector lower by 0.13 percent. The energy sector finished down 0.07 percent, while the materials sector gained 0.26 percent. Major banking stocks in the country mostly edged higher, with ANZ up 0.04 percent, Commonwealth Bank of Australia flat, Westpac shares up 0.10 percent and the National Australia Bank adding 0.14 percent. In South Korea, the Kospi closed down 6.96 points, or 0.34 percent, at 2,047.11. In Hong Kong, the Hang Seng index was down 1.42 percent in late-afternoon trade. Chinese mainland markets closed lower, with the Shanghai composite down 52.64 points, or 1.74 percent, at 2,981.24, while the Shenzhen composite shed 41.51 points, or 2.06 percent, to 1,966.60. Japan's Nikkei 225 lost 209.46 points, or 1.25 percent, to 16,544.56, after a speech from Bank of Japan (BOJ) Governor, Haruhiko Kuroda, sent the yen higher. Speaking to business leaders in Osaka, Kuroda said the central bank was prepared to use every policy tool available to achieve its 2 percent inflation target. He reaffirmed the main policy tool at the BOJ's disposal for further easing was to cut the short-term policy interest rate further into negative territory and lowering the target level of the long-term interest rate. He added expanding asset purchases also remained an option. "There is no better opportunity than now to completely get out of deflation," said Kuroda. The comments from Kuroda sent the Japanese yen slightly higher against the dollar, trading at 100.85 as of 2:15 p.m. HK/SIN, compared with levels as high as 101.10 earlier in the session. Last week, the yen fell beyond the 102.40 handle, after the BOJ overhauled its monetary policy, but stopped short of cutting short-term interest rates deeper into negative territory. Major Japanese exporters ended mostly lower, with Toyota shares down 0.55 percent, Nissan off 1.26 percent and Honda dropping 2.14 percent. A stronger yen is usually a negative for exporters as it reduces their overseas profits when converted into the local currency. Japanese banking stocks also sold off, likely on the back of Kuroda's confirmation that further interest rate cuts were still on the table; negative interest rates can hurt banks' profit margins. Shares of Mitsubishi UFJ fell 2.06 percent, SMFG was down 1.41 percent and Mizuho Financial dropped 1.26 percent. Analysts said Asian investors were keeping an eye on the upcoming U.S. presidential debate, where nominees Hillary Clinton and Donald Trump were set to go head-to-head on Monday evening U.S. time. Recent polls have shown the two candidates are neck and neck in their popularity ahead of the November election. "A 'good' performance by Trump could see a rally in safe haven assets, Japanese government bonds/yen, gold, German bunds, and that further yield compression conversely may actually assist long duration 'riskier' assets such as emerging markets, high yield bonds and U.S. equities," Angus Nicholson, a market analyst at brokerage firm IG, forecast in a morning note to clients. But others said the debate could fall short of expectations. "We lived through last week with the Fed and the BOJ delivering very little, with a lot of expectations. That could well be what happens with this debate," Tai Hui, chief Asia market strategist at JPMorgan Asset Management, told CNBC's "Squawk Box" on Monday. "Given that there is a series of debates, they will try to play it safe in the first one rather than to really [have a] go at each other," he added. In the currency market, the dollar index, which measures the greenback against a basket of currencies, traded at 95.478 as of 2:22 p.m. HK/SIN. This was compared to levels above 96.00 briefly touched in the previous week before the U.S. Federal Reserve opted to keep its monetary policy unchanged. The Australian dollar traded at $0.7616, retreating from levels near $0.7680 in the previous week. Elsewhere, the Philippine peso weakened against the dollar to levels not seen since 2009, trading at 48.19 as of 2:24 p.m. HK/SIN. Reuters reported that local importers' demand for the greenback for payments had exacerbated pressure on the peso as foreign investors were also pulling funds out of the country's stock market amid concerns President Rodrigo Duterte's aggressive rhetoric and drug crackdown was alienating key allies. In the oil market, prices climbed on Monday, with U.S. crude up 0.83 percent to $44.85 in the afternoon during Asian hours, after falling 3.97 percent on Friday. Global benchmark Brent added 0.89 percent to $46.30 a barrel. OPEC producers were set to informally meet this week at the sidelines of an energy conference in Algeria to discuss a possible production freeze deal. Prices received a boost on Monday, following a Reuters report that cited the Algerian energy minister saying all options were possible for an output cut or freeze at the meeting. But analysts remained skeptical. "While expectations have painted the group into a corner not to walk away empty-handed, markets have sufficient cynicism not to expect a concrete deal," said Wei Liang Chang, a currency strategist at Mizuho Bank. Chang noted that even if a production freeze deal were achieved, it would likely not be immediate. "Such a deal may target a six-month horizon, rather than taking immediate effect ... in line with the likes of Iran, Iraq, Nigeria and Libya stabilizing/smoothing their production," he said. On Friday, oil prices gyrated after multiple, contradictory reports created uncertainty. Initially, Reuters reported that Saudi Arabia had agreed to trim its production if Iran capped its own output. That sent oil climbing, but prices pulled back following another report, citing an unnamed Saudi official, warning against the expectation for a deal. In company news, Samsung shares reversed early gains of nearly 0.3 percent to trade lower by 0.19 percent, following reports that the company was delaying the start of new Galaxy Note 7 handset sales in South Korea until October 1. Reuters reported the company saying the move was needed for speedy completion of the ongoing recall in the country of existing Note 7 smart phones, with only about 200,000 affected customers having turned in their devices. The new handset, released earlier this year, had come under scrutiny, following multiple reports of fires and damage to the handsets around the world. Earlier this month, Samsung announced a recall of at least 2.5 million Note 7 handsets in 10 markets to replace a faulty battery causing the phones to catch fire, reported Reuters. Japanese camera maker Nikon beat the broader benchmark to close up 1.93 percent, after Citigroup upgraded the stock to a Buy from Neutral citing improving technology, change in strategic direction and expectations that the company could avoid a big drop in earnings in fiscal 2018. More»
Amwal Al Ghad English - 2016-09-26 08:07:51
European stocks inched lower in morning trade on Monday as investors trod cautiously ahead of an OPEC producers meeting in Algeria this week. Deutsche Bank stock also continued its slide lower, hitting a record low on Monday. Shares fell 4 percent, following a report in the German magazine Focus that the country's government had ruled out any state aid for the bank. The pan-European Euro Stoxx 600 Index was lower with all sectors and major bourses in negative territory. Oil and gas stocks were the worst performer despite a rise in oil prices on Monday morning. OPEC producers are set to informally meet on the sidelines of the International Energy Forum in Algeria, to discuss a possible production freeze deal. The informal meeting will take place between Monday and Wednesday. Algeria's energy minister said that OPEC oil ministers will "not come out empty-handed" from the meeting but analysts remain skeptical of any agreement. More»
Amwal Al Ghad English - 2016-09-24 10:42:23
Egyptian global depository receipts (GDRs) trade on the London Stock Exchange (LSE) closed on Friday with no change. GDRs of Egyptian food maker Edita Food Industries (EFID), Commercial International Bank – Egypt (CBKD), investment bank EFG-Hermes (EFGD), and Orascom Telecom Media and Technology Holding (OTMT) ended trading with no change in values at $5.82, $3.93, $1.86, and $0.40, respectively. More»
Amwal Al Ghad English - 2016-09-24 09:12:03
Stock markets in Asia ended mixed Friday, as traders continued to digest announcements from the U.S. Federal Reserve and the Bank of Japan (BOJ). The Nikkei 225 in Japan closed down 53.60 points, or 0.32 percent, at 16,754.02. The Topix slipped 3.11 points, or 0.23 percent, to 1,349.56 on Friday. Japanese markets were shut on Thursday for a public holiday after climbing nearly 2 percent Wednesday when the BOJ announced an overhaul of its monetary policy framework. Chinese mainland markets traded lower, with the Shanghai composite closing down 8.51 points, or 0.28 percent, at 3,033.79, while the Shenzhen composite fell 10.04 points, or 0.5 percent, to 2,008.12. In Hong Kong, the Hang Seng index was down 0.34 percent in late-afternoon trade, while South Korea's Kospi index finished up 4.37 points, or 0.21 percent, at 2,054.07. Australia's benchmark ASX 200 beat regional peers to finish up 56.84 points, or 1.06 percent, at 5,431.30, with the heavily-weighted financial sector gaining 1.15 percent. The gold sector, however, dropped 2.08 percent. For the week, the ASX 200 posted a 2.5 percent gain. Markets searched for direction during trading hours on Friday, in part due to the lack of any major data releases in the economic calendar. Sentiment in markets next week will likely be dominated by the first U.S. Presidential Debate taking place on Monday. "After a week of key risk events, Friday brings a breather to markets, with little in the way of significant data flow," said Tapas Strickland, an economist with the National Australia Bank (NAB). Strickland added that the global rally in risk assets and bonds seen Thursday was likely due to markets interpreting Wednesday's Federal Open Market Committee statement as more on the dovish side. "[Central banks] want higher growth and more inflation ... they don't want to upset things, given uneven and fragile global growth," said Shane Oliver, head of investment strategy and chief economist at AMP Capital. He added that global monetary policy was set to remain "easy for some time yet," meaning a positive environment for shares and growth assets, not taking into account short-term even risks. Putting some pressure on Japanese stocks on Friday was a relatively high yen, which traded as high as 100.67 against the dollar, compared with levels above 102 on Wednesday before the Fed's policy decision. At 2:48 p.m. HK/SIN, the dollar/yen traded at 100.78. Major Japanese export stocks were mixed, with Toyota finishing down 3.16 percent and Honda slipping 2.37 percent. Meanwhile, Nissan added 0.98 percent and Sony shares gained 0.8 percent. A stronger yen tends to weigh on exporters as it reduces the value of overseas earnings when they are translated back into their home currency. Many Japanese banking stocks also closed down more than 1 percent each, with investors likely taking profits after shares rallied on the back of the BOJ's decision to not cut interest rates further into negative territory on Wednesday. Negative interest rates affect the profit margins of banks. Mitsubishi UFJ closed down 1.54 percent, SMFG was down 1.63 percent and Mizuho Financial fell 1.93 percent. In the currency market, the dollar index, which measures the greenback against a basket of currencies, traded at 95.418, a touch higher than levels near 95.410 reached Thursday afternoon Asia time. That compared with levels over 96 before the Fed decision. Meanwhile, the Australian dollar traded nearly flat at $0.7647 as of 3:02 p.m. HK/SIN, compared with its last close at $0.7642. The Aussie climbed in the previous session from a pullback in the dollar. During Asian hours on Friday, oil prices saw some declines following a positive session in the U.S. hours. U.S. crude fell 0.86 percent to $45.92 a barrel as of 3:03 p.m. HK/SIN, after climbing 2.2 percent on Thursday. Global benchmarkBrent was down 0.69 percent to $47.32 a barrel, after adding 1.8 percent in U.S. hours. The Dow Jones industrial average gained 98.76 points, or 0.54 percent, to close at 18,392.46; the S&P 500 index rose 14.06 points, or 0.65 percent, to end at 2,177.18, and the Nasdaq advanced 44.34 points, or 0.84 percent, to 5,339.52. More»
Amwal Al Ghad English - 2016-09-24 09:09:21
European stocks ended lower on Friday as investors paused for breath after recent gains and digested the latest data on manufacturing and services activity in the euro zone. The pan-European Euro Stoxx 600 Index ended the day down 0.7 percent provisionally with the German Dax and France's CAC 40 both down by 0.4 percent. The FTSE 100 closed flat on the day The banking sector was the worst performer after a rally in the previous session aided by the weaker dollar following the rate decision by the U.S. Federal Reserve. There was bad news for euro zone on Friday with the latest flash purchasing manager's index (PMI) falling to a near two-year low, indicating that the economic upturn in the region is fragile and failing to achieve any real traction. The preliminary PMI from Markit showed that business activity in the 19-country region fell to 52.6 in September versus 52.9 in August and below market expectations. Stephen Brown, a European economist at Capital Economics, believes that pressure on the European Central Bank to take action will continue to mount. "We expect it to announce an extension of its asset purchase program in December, if not before." Sports Direct shares rise In the U.S., Wall Street was also slightly lower with the Dow Jones Industrial Average off 0.3 percent and the broader S&P500 down 0.23 percent. In Asia, markets were mixed on Friday. Japanese stocks were trading lower after returning from a one-day holiday on Thursday, having rallied on Wednesday when the Bank of Japan (BOJ) announced an overhaul of its monetary policy framework. In U.S. politics, Democratic presidential nominee Hillary Clinton proposed raising taxes on inherited property to 65 percent for the largest estates as she bolstered plans for tax hikes on the wealthiest Americans, Reuters reported on Thursday. In stocks news, Mike Ashley has been named CEO of U.K. retailer Sports Direct, the company he founded. Shares of the firm rose 5.5 percent. More»
Amwal Al Ghad English - 2016-09-22 16:59:47
European stocks leaped to end higher Thursday as global investors reacted to the U.S. Federal Reserve's decision to hold interest rates steady. The pan-European STOXX 600 index closed around 1.6 percent higher, with all sectors in positive territory and all major bourses posting gains. The U.K.'s FTSE 100 ended provisionally 1.1 percent higher. The French CAC closed unofficially up 2.3 percent and the German DAX was 2.2 percent higher on the day. U.S. stocks rallied on Wednesday after the Fed announcement and continued to do so on Thursday. In its post-meeting statement, the Fed expressed confidence in economic growth, but said it was insufficient for an immediate rate move. "The committee judges that the case for an increase in the federal funds rate has strengthened, but decided, for the time being, to wait for further evidence of continued progress toward its objectives," the Fed's policymaking committee said in a statement. A weaker dollar after the announcement helped the prices of all sorts of commodities, which in turn spurred buying in equities with exposure to these sectors. In consequence, the European basic resources stock sector was a top performer on Thursday, closing around 3.8 percent higher on the day. Strong individual stocks included Glencore and ArcelorMittal, which closed over 5 percent higher on the day, and BHP Billiton, which ended more than 4 percent up. Meanwhile, shares of Moller-Maersk, the world's biggest shipping company, closed over 3 percent higher after it announced it would split its energy and transport divisions into separate businesses. "The industries are challenged and we have not really been able to grow our top line," Mærsk Group CEO Søren Skou told CNBC on Thursday. Plus, Airbus shares closed up over 2 percent despite a World Trade Organization ruling against it for receiving European government subsidies. More»
Amwal Al Ghad English - 2016-09-22 08:36:14
European stocks were higher in morning trade on Thursday as global investors reacted to the decision by the U.S. Federal Reserve to hold interest rates steady. The pan-European Euro Stoxx 600 Index was higher with all sectors in positive territory and all major bourses posting gains. European markets followed the positive lead set in Asia and the U.S. where stocks rallied after the Federal Reserve kept interest rates unchanged on Wednesday, despite hinting of a hike later in the year. In its post-meeting statement, the Federal Open Market Committee expressed confidence in economic growth, but not enough to make a move this month. "The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," the Fed's policymaking committee said in a statement. A weaker dollar after the policy decision helped the prices of metals, basic resources and all sorts of commodities, which in turn spurred buying in equities with exposure to these sectors. EDF shares fall; Moller-Maersk rises In other news, one person was shot and critically wounded Wednesday as demonstrators clashed for a second night with police in Charlotte, N.C., NBC News reported, a day after the police killed a man whose family claimed he was simply reading a book. In business news, French nuclear power utility EDF said on Wednesday it was lowering its 2016 earnings expectations; shares were down 3 percent in morning trade Thursday. In other stocks news, shipping giant Moller-Maersk saw shares rise 2.6 percent after it announced extensive reorganization plans. Banking stocks were also in favor, following on from a major policy overhaul by the Bank of Japan this week. More»
Amwal Al Ghad English - 2016-09-22 08:34:59
Asia stock markets climbed across the board Thursday, as uncertainties surrounding key monetary policy decisions came to a close, following Wednesday's announcements from the U.S. Federal Reserve and the Bank of Japan (BOJ). Australia's ASX 200 closed up 34.94 points, or 0.65 percent, at 5,374.50, with most sectors finishing higher. The energy sector advanced 2.10 percent, materials was up 2.63 percent and the heavily-weighted financial sector was flat. New Zealand's NZX 50 was up 30.54 points, or 0.42 percent, at 7,311.71, while in South Korea, the Kospi was higher by 13.71 points, or 0.67 percent, at 2,049.70. In Hong Kong, the Hang Seng index briefly touched a session high of 24,058.65 before paring some of the gains to trade up 0.56 percent at 23,801.67 as of 3:10 p.m. HK/SIN. Mainland markets in China also gained, with the Shanghai composite closing up 16.81 points, or 0.56 percent, at 3,042.68, while the Shenzhen composite added 12.56 points, or 0.62 percent, to 2,018.16. The Japanese market, which climbed nearly 2 percent on Wednesday following the Bank of Japan's (BOJ) decision to overhaul its monetary policy framework, was closed Thursday for a public holiday. Singapore-based DBS Bank's analysts said in a note to clients on Thursday that stock markets reacted "well to the Fed hold and the BOJ tweak." They noted the perception gap between the Fed and the market has "narrowed somewhat." "As the dissents on policy rose to three (highest this year), the market has notched up the probability of a December hike to 63 percent, up from 58 percent before the meeting," the DBS analysts said. Other analysts suggested now that the key decisions from the U.S. and Japan were over, more investors would likely get back into the stock market. "The combination of these central bank decisions [from the BOJ and the Fed] is likely to see equity markets remove some risk premium over coming days," said Ric Spooner, chief market analyst at CMC Markets. The Fed kept interest rates unchanged on Wednesday, despite hints of a hike later in the year. In its post-meeting statement, the Federal Open Market Committee expressed confidence in economic growth, but not enough to make a move this month. They also lowered their expectations for rate hikes in the years ahead, suggesting two hikes in 2017 and three each in 2018 and 2019. "Based on the experience of the last few years, it's understandable that the market is skeptical of Fed rate hike expectations as they have been continuously revised down," Shane Oliver, head of investment strategy and chief economist at AMP Capital, said. Oliver added that he expected a rate hike from the Fed in December, but the caveat being more "consistently positive economic data from the U.S. over the next three months." In the currency market, the dollar fell against a basket of currencies, with the dollar index trading at 95.410 as of 2:09 p.m. HK/SIN, lower than the 96.151 level it touched on Wednesday afternoon Asia time. The pullback in the dollar was likely behind a rise in the yen. The dollar/yen pair reached levels as high as near 102.78 after the BOJ's decision on Wednesday; the currency pair traded at 100.23 on Thursday afternoon Asia time. Kathy Lien, BK Asset Management's managing director of foreign exchange strategy, said in an early morning note the movement in the dollar/yen pair was a reflection that somehow "both central banks managed to fall short of expectations." On Wednesday, the Japanese central bank kept rates steady but issued a plethora of fresh changes to its policy approach, marking its latest attempt to boost prices and goose economic growth. In other currency moves, the Australian dollar traded up 0.34 percent at $0.7649, likely boosted by the Fed's decision to keep interest rates on hold, which in turn pushed the greenback lower. A jump in oil prices during the U.S. session on Wednesday and further advances during Asian hours Thursday could also have played a role in pushing the Aussie higher. AMP Capital's Oliver warned that prolonged strength in the Aussie, as a result of continuous delays in Fed rate hikes, could "dampen the ongoing rebalancing in the Australian economy." Oil prices climbed on Wednesday after another weekly drop in U.S. crude inventory. Data from the U.S. Energy Information Administration (EIA) showed crude inventories fell by 6.2 million barrels in the previous week, compared with a Reuters poll that predicted a 3.4 million build. On Thursday afternoon, during Asian hours, oil prices continued their advance. U.S. crude was up 0.93 percent at $45.76 a barrel as of 2:34 p.m. HK/SIN, after climbing 2.9 percent in the U.S. session. Global benchmark Brent was up 0.88 percent at $47.24 a barrel, following an overnight gain of 2 percent. The Reserve Bank of Australia's (RBA) new governor Philip Lowe made his first public appearance Thursday in front of a house committee, where he said the RBA were not "inflation nutters," and emphasized it was not in the public interest to rush inflation higher at the cost of deteriorating private sector balance sheets. He reiterated the central bank's gradual inflation target between 2 and 3 percent, thus leaving room for further easing and gave an upbeat assessment of the Australian economy's readjustment following the unwinding of the mining investment boom. "[Governor Lowe] appears comfortable with domestic economic conditions and global risks, increasingly confident on the outlook, not especially uncomfortable with the Aussie, and more sensitive to the risks to financial stability," said analysts at Goldman Sachs. "We interpret this as consistent with our out-of-consensus view for the RBA to remain on hold through 2016 and 2017," the Goldman analysts said. The Reserve Bank of New Zealand kept its official cash rate unchanged at 2.0 percent on Thursday, but left the door open for further easing in the future, citing a relatively stronger Kiwi dollar and inflation hovering below the central bank's target. ANZ economists Cameron Bagrie and Philip Borkin said the RBNZ's confirmation that further policy easing would be required will "soothe a market that had become skeptical of the RBNZ's desire to continue easing, and is the strongest hat-tip to a November cut the market could ask for." The New Zealand dollar retreated to as low as $0.7319 in the wake of the decision, from levels as high as $0.7367 before the announcement. At 2:11 p.m. HK/SIN, the kiwi was fetching $0.7335. In company news, shares of troubled container shipping company Hanjin Shipping climbed 29.61 percent following a Reuters report that said Hanjin's lead creditor, Korea Development Bank, was considering lending the company about 50 billion won ($45 million) to help unload stranded cargo. The news was confirmed by the bank after market close, according to Reuters. Reuters said an estimated $14 billion of cargo was trapped on Hanjin ships, following the company's collapse late last month. Elsewhere, Chinese Premier Li Keqiang told the United Nations on Wednesday that the world's second-largest economy would promote economic development by opening up its economy more widely and pledged China would not engineer a devaluation of its currency to boost exports, according to a Reuters report. On Wednesday, the Dow Jones industrial average gained 163.74 points, or 0.90 percent, to close at 18,293.7. The S&P 500 rose 23.36 points, or 1.09 percent, to end at 2,163.12, while the Nasdaq advanced 53.83 points, or 1.03 percent, to close at 5,295.18. More»
Amwal Al Ghad English - 2016-09-21 18:07:05
European stocks ended trade higher on Wednesday after the Bank of Japan announced new policy measures, but pared some gains later in the session as investors awaited the outcome of the U.S. Federal Reserve's meeting. The pan-European STOXX 600 index closed up around 0.5 percent, with basic resources and energy stocks gaining in afternoon trade after a boost to oil prices. The U.K.'s FTSE 100 ended provisionally up 0.2 percent, with the French CAC 40 and German DAX higher by 0.6 percent and 0.5 percent respectively. U.S. stock indexes rose in early Wall Street trade, also getting a boost from the rise in light crude oil prices, ahead of the Fed announcement. WTI crude futures for November topped $45 per barrel on Wednesday, well above the 50-day level of $44.80. The spike came as the U.S. reported a surprisingly large drop in crude inventories and helped push shares of Amec Foster and SBM Offshore close more than 2 percent higher. The Fed will announce its latest policy decision on Wednesday at 2 p.m. ET, with Fed Chair Janet Yellen briefing the media at 2:30 p.m. ET. Market consensus is for the central bank to hold its base rate in the 0.25-0.50 percent range and not lift again until December. CME Group's FedWatch Tool puts the probability of no change at 85 percent, with a 15 percent chance of a hike to 0.50-0.75 percent. A surprise cannot be ruled out though, according to the head of economic research at Daiwa Capital Markets. "It is far from the case that all recent data have been soft, with an upside surprise seen to last Friday's CPI figure and (forecasts) of third-quarter gross domestic product (GDP) growth still around 3 percent," Chris Scicluna said on Wednesday in a note. Earlier on Wednesday, the Bank of Japan announced it would change policy, abandoning its monetary base target in favor of targeting the yield curve for Japanese bonds. It held the deposit rate unchanged at -0.1 percent and said it would maintain its program of bond purchases. The Japanese Nikkei 225 closed around 1.9 percent higher subsequently, having traded 0.3 percent up on the day before the decision was announced. Japanese banking shares rose to close sharply higher, boosted by the news of no further rate cuts. The Japanese Topix index also rallied, while the yield on 10-year Japanese government bonds turned positive for the first time since March. Michael Hewson, chief market analyst at CMC Markets, said the move would help Japanese banks but might not have the desired effect on the Japanese economy. "Japanese policymakers ... appear to have focused their attention on targeting the shape of the yield curve in order to take the pressure off banks, as a flatter yield curve took its toll on bank profitability. Ultimately, while these actions may well help the banks, it's doubtful they will to help the Japanese economy that much and in some ways it shows how little flexibility the central bank has, given how experimental policy is now becoming," Hewson said in a note on Wednesday. Analysts at Accendo Markets said the Bank of Japan's move could deter the Fed from an immediate rate rise. "Market sentiment is being helped by the prospect of accommodative policy for longer, even if the BOJ is struggling to deliver. Hopes are also high that the latter's action leaves the Fed in a bind, forcing it to hold off from hiking at all this year," the analysts said in a note on Wednesday. More»