Daily market review – July 17th 2017

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China beats the forecasts with a strong growth of 6.9%!!
China’s second-quarter growth figures were higher than the early forecast due to strong manufacturing activity and an increase in the private consumption, but investors are warn that the second half will not be so optimistic.

China’s economy grew in the second quarter at an annual rate of 6.9%, the same rate as in the first quarter, this compares to analysts’ forecasts for a 6.8% growth.
Compared to the first quarter, China’s economy grew by 1.7%, according to the forecasts.

A rise in retail sales and the industrial output also helped offset the relative weakness in the country’s stock market caused by speculation that financial regulation will worsen.

The output of factories in China grew by 7.6% in June from the same period last year, the highest growth rate in three months.

The Wall Street trading week will open at the background of the continued reporting season and interest rate decisions by two of the world’s leading central banks, the Bank of Japan and the European Central Bank.

The Bank of Japan is expected to publish optimistic forecasts for Japan’s economy on the back of steady export data, rising domestic consumption and a weaker Japanese yen.
The ECB is expected to leave the interest rate unchanged.

The trading on Wall Street last week ended with a rise, as the Dow Jones and the S&P 500 broke records.
The Dow Jones Industrial Average rose by 1% and close at 21,637 points.
The S&P 500 rose by 1.4% and reached 2,459 points.
The NASDAQ rose by 2.6% in a week’s summary, it was his best week in 2017.

In addition, on Friday, two macro data were published in the US that may affect the Federal Reserve’s policy on future interest rate decisions.
The June CPI remained unchanged and the retail sales in June fell by 0.1%, indicating that the slowdown in US inflation is not temporary As Federal Reserve officials estimate.
Therefore, the Federal Reserve may not raise the interest rates this year as previously announced.

Daily market review – July 13th 2017

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The Federal Reserve Chairman Janet Yellen said yesterday that the central bank is closely monitoring the moderate level of inflation in the United States, but she continues to expect that the Fed will begin to reducing assets in its balance sheets by $ 4.5 trillion later this year.

Yelan added that the central bank intends to continue raising the interest rates and begin to reduce the volume of assets in its balance sheets, but didn’t provide any new information on the timing of these measures.
Analysts predict that the Fed will begin reducing the volume of bonds in its balance sheets in September.

Regarding the interest front, Yelan signaled in her testimony that the Federal Reserve may not have to raise the rates in the US many more times: “Since the neutral interest rate is now quite low in historical terms, the federal interest rate will not have to cost so much to reach a neutral policy”

In response to Fed Chairman’s remarks, Wall Street’s stock markets closed on a positive note and the blue-chip stocks hit record highs.

In addition, the price of gold rose for the third day in a row.
The price of gold closed at aprice level of $ 1,219.1 per ounce, up 0.4%.

The trading in most Asian markets this morning is positive, following Wall Street gains on the back of optimistic remarks by Federal Reserve Governor Janet Yellen that the economy is expected to continue to grow at a moderate pace over the next two years.
Tokyo drops 0.1% as tge Japanese yen strengthens.
Hong Kong rising by 1.1%, Shanghai rises by 0.4%, Singapore is up by 0.6%.

Daily market review – July 12th 2017

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The trading on Wall Street stock markets closed yesterday in a slight positive trend.
The Dow Jones closed unchanged, the S&P 500 fell by less than 0.1% and the NASDAQ rose by 0.3%.
Snap shares fell by 8.8% after closing yesterday at a lower price and the company’s market value reached less than $ 20 billion.

In the forex market yesterday, the Euro went up against the US dollar by 0.3% to $ 1.1436 per euro.
the pound depreciating against the us dollar by 0.4% and trading around $ 1.2833 per pound.
This morning the Japanese yen rose by 0.5% against the US dollar, trading at 113.38 yen per dollar.

The WTI crude oil for delivery in August rose yesterday by 1.6% to $ 45.12 per barrel.

The morning there is a mixed trend in the Asian markets.
Tokyo Loses 0.5%, Hong Kong is rising by 0.8%, Shanghai is down by 0.2% and Singapore retreated by 0.4%.

Daily market review – July 11th 2017

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The price of gold recovered yesterday from a four-month low after a positive employment report released last week which bolstered expectations of further US interest rate hikes this year.

The price of the gold closed at a price level of $ 1,213.2 per ounce, up by 0.3% on the New York Exchange.
The price of the gold fell last Friday by 1.1% to $ 1,209.7 per ounce, and it was the lowest level since March 15.

The price of the oil closed yesterday slightly higher in New York on speculation that OPEC would impose restrictions on the cartel companies in Libya and Nigeria.

The WTI oil closed at a price level of $ 44.4 a barrel, up by 0.4% on the New York Exchange after falling almost by 3% on Friday.

The Wall Street Journal reported yesterday that Libya and Nigeria, which were exempt from the agreement of cut production of OPEC, were invited to the meeting of major oil producers this month in Russia.

Daily market review – July 10th 2017

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The trading on Wall Street stock exchanges will open today in an upbeat mood after a reassuring employment report released on Friday, a report that indicating a continued recovery in the US job market, with the addition of 222K jobs in June, well above the early forecasts, and was pushing the Wall Street indices to a weekly gains.

The unemployment in the US now stands at 4.4%, which is the lowest level in 16 years, and less than half of the unemployment rate in the Euro zone.

On the macroeconomic front this week, the inflation indices and the producer price index, will be published on Thursday.
The consumer price index will be published on Friday.
The US inflation rate is satisfactory, moving above 2% at an annualized rate since the beginning of 2017, depending on the Fed’s target.

The rise in inflation, coupled with encouraging economic data in the employment market and in consumer and business confidence, contributes to the Federal Reserve’s policy of raising interest rates, which last month raised the interest rate again to 1-1.25 percent.

The decision to raise the interest rate in the United States last month was supported by almost all Federal Reserve officials, but among central bank leaders there was a dispute over appropriate long-term policy.
According to the protocol of the FOMC meeting, On raising interest rates in the US for the third time in six months.
The protocol also revealed details of their plan to begin gradually reducing more than $ 4.5 trillion of assets in the central bank’s balance sheets.

Daily market review – July 6th 2017

 

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The trading on Asian stock exchanges is being led by price declines in the shadow of escalating tensions between the US and North Korea and fears of military confrontation.

Tokyo is down by 0.5%, Shanghai and Hong Kong are losing 0.3% each, Singapore is down by 0.3%, Seoul is down by 0.2%, Sydney is losing 0.1%.
The Japanese yen weakened by 0.2% to 113.0 yen.against the US dollar.

Wall Street’s stock markets closed in a positive direction yesterday led by chip and defence industries, and in light of the publication of the protocol of the Fed’s latest interest rate meeting.
The NASDAQ Composite Index rose by 0.7% on its way to its first positive day in four trading days, while the S&P 500 Index rose by 0.2%.
The Dow Jones Industrial Average closed almost unchanged.

The decision to raise the interest rate in the US last month was made with the support of almost all Federal Reserve officials, but there is disagreement among central bankers about the appropriate long-term policy.

The protocol of a meeting of the Federal Open Market Committee (FOMC) last month, in which central bank officials decided to raise interest rates in the United States for the third time in six months, revealed details of their plan to begin gradually reducing more than 4.5 trillion dollar of assets in the balance sheets of the central bank.

Daily market review – July 5th 2017

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This morning the trading on the European stock exchanges is going down.
London is unchanged, Frankfurt drops by 0.2%, Paris retreated by 0.3%.

The trading in most of Asian exchanges was conducted with price hikes.
Tokyo added 0.2%, Hong Kong rising by 0.6%, Shanghai rises by 0.4%.
Seoul rose by 0.3%.
The Japanese yen is up 0.1% against the US dollar to 113.23 yen per dollar.

The European Union has given the Italian government its official approval for the rescue the bank of Monte di Pesque di Siena in a package worth 5.4 billion euros ($ 6.1 billion).
After months of negotiations, the European Commission has approved the bailout of the bank, which needs help to survive even though regulators have declared it insolvent.
The bank ofMonte di Peschi is the oldest bank in Italy, appealed to the government for help after failing to raise capital from investors in December.