Monthly Archives: February 2018

ARGENTINA: Merval Falls On Friday But Ekes Out 1% Gain For The Week

By | February 24, 2018

Merval, the main index of the Buenos Aires Stock Exchange, fell 1.05% Friday to 32,774.83 points however still managed to eke out a 1% weekly gain.

Autopistas del Sol (+0.25%) reported that it extended its contracts with the oil company Axion Energy Argentina for two areas of fuel sales services in the General Paz Opportunity.

The Argentinean state-owned oil company YPF (-1.07%) acknowledged that it had actually hired Citibank “to check out tactical choices” regarding its stake in gas supplier Metrogas.

The locally traded U.S. dollar rose 0.15%, closing at 19.98 Argentinean pesos, the greatest cost of the month.

“In the last half hour the market was quite balanced, after having increased need and operated again at 20 pesos per dollar, although the rise lasted little and with a volume less than the previous days,” said Fernando Izzo, an analyst at ABC Mercado de Cambios.

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MEXICO: Economic Activity Increases 1.9% In December On A Yearly Basis

By | February 23, 2018

Mexico’s financial activity index (IGAE) grew 1.9% in December 2017, on an annual basis, speeding up a little from November (+1.7%), said the nation’s stats office.

On an annual basis, by big groups of activities, the primary sector had a 1.8% boost in activity, while the service sector published a 2.6% increase.

On the other hand, manufacturing activity increased by 0.1%.

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Treasuries Extend Rebound As Fed Issues Monetary Policy Report

By | February 23, 2018

Following the rebound seen in the previous session, treasuries continued to regain ground during trading on Friday.

Bond prices initially moved higher and saw some further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.6 basis points to 2.871 percent.

With the notably decrease on the day, the ten-year yield pulled back further off the four-year closing high set on Wednesday.

The continued rebound by treasuries came as the Federal Reserve issued its monetary policy report to Congress, with the central bank hinting that it still plans three interest rates hikes in 2018.

“The federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run,” the Fed said, suggesting a gradual pace of rate hikes.

Economic data may be in focus next week, with traders likely to keep an eye on reports on new home sales, durable goods orders, consumer confidence, personal income and spending, and manufacturing activity.

Congressional testimony by new Federal Reserve Chairman Jerome Powell is also likely to attract next Wednesday amid lingering concerns about the outlook for interest rates.

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BRF: Bottom Line Rises 77.4% In The 4Q17

By | February 23, 2018

Brazilian food processor BRF bottom line increased 77.4% in the last quarter of 2017 from a year before, to R$ 784 million (US$ 240.5 million), missing out on market estimates of a R$ 187.52 million earnings. In 2017 as a whole, the business taped a bottom line of R$ 1.099 billion.

Inning accordance with BRF, a large part of the losses originated from “remarkable operating provisions,” which had a total effect of R$ 453 million on the company’s EBITDA – R$ 206 million associated to the modification to the possible worth of stocks
civil and labor claims at OneFoods

BRF’s net income grew 3.6% in the fourth quarter from a year previously, to R$ 8.901 billion, listed below market expectations (9% boost, to R$ 9.249 billion). Changed EBITDA (earnings before interest, taxes, devaluation, and amortization) increased 38.5%, to R$ 645 million, while analysts forecasted a 110% boost, to R$ 1.173 billion.

BRF sales volume in the quarter rose 8.1%, to 1.306 billion heaps. The typical rate (ROL) was R$ 6.82, down 3.6% in the quarter, totaling R$ 8.9 billion in the quarter, up 3.6%. In the fourth quarter, the business’s gross margin was 21.1% or 1.4 percentage points (pp) listed below the margin for the same period in 2017.

At the end of the fourth quarter, the company’s net debt totaled up to R$ 13.310 billion, from R$ 13.4 billion at the end of the previous quarter.

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PETROBRAS: Company And Eletrobras Are Renegotiating R$ 20 Billion Financial Obligation

By | February 23, 2018

Brazilian state-owned business Petrobras and Eletrobras relaunched the negotiations over a R$ 20 billion (US$ 6.14 billion) debt from the power company relating to gas supply from Petrobras.

A source said that talks are underway, however that a possible contract is still far from being reached, mostly due to the Eletrobras’ money circumstance and the payment approach.

According to that source, Petrobras desires a deal as soon as possible, as long as the agreement fulfills its needs.

Eletrobras has currently acknowledged part of the financial obligation to the oil company – about R$ 10 billion which are being paid in installments. Eletrobras must work out a part of another amount and the financial obligation, of about R$ 3 billion, associating with legal and administrative procedures.

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Dollar Mixed As Week Draws To A Close

By | February 23, 2018

The dollar is turning in a mixed efficiency against its major competitors Friday afternoon. The absence of U.S. financial data at the end of the trading week is keeping some financiers on the sidelines. Traders can look forward to a number of essential launched next week, including consumer self-confidence, GDP and resilient products orders.

The dollar has actually risen to around $1.2290 against the Euro Friday afternoon, from an early low of $1.2331.

Eurozone inflation relieved as estimated in January, final information from Eurostat revealed Friday. Inflation slowed slightly to 1.3 percent in January from 1.4 percent in December. The rate came in line with the quote released on January 31.

Germany’s economy broadened as at first approximated in the fourth quarter largely on foreign need, in-depth report from Destatis showed Friday. Gdp climbed 0.6 percent sequentially, slower than the 0.7 percent expansion seen in the third quarter. The rate came in line with the estimate released on February 14.

The buck reached an early high of $1.3902 versus the pound sterling Friday, but has considering that pulled back to around $1.3965

The greenback reached a high of Y107.131 versus the Japanese Yen Friday morning, however has actually considering that eased back to around Y106.625.

Total nationwide customer costs in Japan climbed up 1.4 percent on year in January, the Ministry of Internal Affairs and Communications said on Friday. That went beyond projections for 1.3 percent and was up from 1.0 percent in December.

Manufacturer costs in Japan were up 0.7 percent on year in January, the Bank of Japan said on Friday. That was shy of expectations for a gain of 0.8 percent, which would have been unchanged from the previous month.

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CHILE: Producer Price Index Decreases 0.6% In January From A Month Before

By | February 23, 2018

The Chilean Producer Cost Index (PPI) recorded a 0.6% reduction in January 2018 on a regular monthly basis, slowing down after reaching a 0.4% boost in December 2017 and publishing the sharpest fall since September in 2015, said the country’s statistics workplace. In twelve months, the index increased 6.7%, likewise decreasing from the 8.4% yearly increase taped in December.

Rates to the mining industry receded 0.9%, while costs to producers fell 0.3%. Manufacturer Inflation to drinking water and electrical energy circulation services decreased 0.5%. Meanwhile, items that had considerable increases were copper (0.1%), iron (1.9%), unroasted molybdenum focuses (9.5%), and pork, refrigerated or fresh (3.4%).

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COLOMBIA: Moody'’s Affirms Sovereign Score

By | February 23, 2018

Danger company Moody’s kept Colombia’s credit rating at Baa2, however downgraded the score outlook to negative from stable, pointing to a slower speed of fiscal debt consolidation and the prospect of long shot of additional financial procedures by a brand-new federal government.

Moody’s stated that its choice to verify the Baa2 ratings reflects the strength of Colombia’s credit profile and fairly low external vulnerability.

“On a number of score factors, including development, economic size, and institutional factors, Colombia’s credit metrics remain in line with Baa2-rated peers,” Moody’s reported in a new assessment on the nation.

Inning accordance with Moody’s, Colombia’s ratings might be devalued if the financial development stays listed below prospective and if the next federal government were not able to provide a reputable plan for medium-term fiscal debt consolidation, or is unable to gather support in Congress for the extra financial procedures under such a strategy.

“Provided the appointed unfavorable outlook, a score upgrade is unlikely quickly,” Moody’s clarified.

On the other hand, Moody’s stated it may alter the outlook on Colombia’s ranking back to “stable” if the next government ultimately carry out a comprehensive bundle of financial procedures to lower the financial deficit and limitation further disintegration of fiscal strength. “Greater clarity over financial reforms would also add to restoring financier self-confidence and be credit positive by supporting development potential customers,” Moody’s stated.

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Crude Oil Increases Second Straight Week

By | February 23, 2018

Petroleum prices continued to increase regardless of additional signs of robust U.S. oil production.

U.S. energy companies added one oil rig this week, bringing the overall count up to 799, the highest level because April 2015, Baker Hughes stated. It was the fifth straight weekly rise in the rig count.

Nymex April oil futures rose 78 cents, or 1.2%, to end at $63.55 a barrel.

Markets were in an excellent state of mind to end the week, as the Federal Reserve hinted that it prepares three rate walkings in 2018, in line with its previous forecasts.

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Gold Posts Weekly Loss, Fed Rate Outlook Murky

By | February 23, 2018

Gold futures were somewhat lower Friday as the Federal Reserve released its monetary policy report to Congress.

The Fed hinted that it prepares 3 rate walkings in 2018, in line with its previous projections.

“The federal funds rate is likely to remain, for a long time, below levels that are expected to prevail in the longer run,” the Fed stated, recommending a more steady rate of rate hikes.

April gold was down $2.40, or 0.2%, to settle at $1,330.30/ oz. Gold has lost some of its safe house appeal as stocks rebounded from steep losses earlier this month.

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