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GMC GROUP FOR INDUSTRIAL COMME   1.29        Telecom Egypt   11.48        Ismailia Misr Poultry   2.45        El Arabia for Investment & Dev   0.34        Modern Company For Water Proof   1.03        Pioneers Holding   2.84        Ezz Steel   7.86        Egyptian Real Estate Group   6.85        Rakta Paper Manufacturing   4.39        Orascom Telecom Holding (OT)   3.92        Naeem Holding   0.19        Egyptian Iron & Steel   6.87        Universal For Paper and Packag   4.94        Northern Upper Egypt Developme   4.93        Canal Shipping Agencies   7.39        Misr Chemical Industries   5.65        United Arab Shipping   0.43        Egyptians Housing Development    1.94        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        Raya Holding For Technology An   4.57        United Housing & Development   8.93        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        Six of October Development & I   15.03        National Development Bank   6.72        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        Union National Bank - Egypt "    3.25        Ceramic & Porcelain   2.88        Rowad Tourism (Al Rowad)   5.05        El Nasr Transformers (El Maco)   4.78        Egyptian Media Production City   2.31        GB AUTO   27        Egyptian Transport (EGYTRANS)   7.85        Sharkia National Food   3.78        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        Prime Holding   0.91        Al Arafa Investment And Consul   0.17        Alexandria Spinning & Weaving    0.74        Gharbia Islamic Housing Develo   8.41        General Company For Land Recla   16.6        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        

The Watch - forex news

Amwal Al Ghad English - 2016-08-09 08:43:16
Pound sterling skidded in Asia Tuesday on speculation of further U.K. policy easing, while the dollar held its ground amid growing confidence that the U.S. Federal Reserve could raise interest rates later this year. Sterling slipped 0.4 percent to $1.2981 after Bank of England policymaker Ian McCafferty said in an op-ed for the Times that more quantitative easing was likely to be required if the UK's economic decline worsens. The dollar index, which gauges the greenback against a basket of six major rivals, erased earlier slight losses and edged up 0.1 percent to 96.474. It held well above last week's low of 95.003, which was its lowest since late June. Fed funds futures prices showed traders now see almost a 50-50 chance of a U.S. rate hike by December, according to CME Group's Fed Watch tool. That compares with 30 percent as recently as last week, before the better-than-expected nonfarm payrolls report on Friday. The dollar was steady at 102.42 yen, a good distance above last week's low of 100.68 yen, while the euro edged down 0.1 percent to $1.1077. "A lot of people are taking summer vacations in Japan this week, so volume is relatively low, and there aren't many market-moving factors," said Koji Fukaya, president of FPG Securities in Tokyo. New Zealand's dollar was steady despite expectations that the Reserve Bank of New Zealand will cut interest rates by 25 basis points to 2.00 percent on Thursday, when regional forex liquidity is likely to be thinner than usual due to a public holiday in Japan. Some 24 of 25 economists polled by Reuters are expecting a rate cut. Economists expect the policy rate will be cut again to 1.75 percent by the fourth quarter and then hold steady, although some are predicting rates are headed even lower. "The market is pricing in 100 percent probability of a cut at the Reserve Bank of New Zealand's meeting," Marshall Gittler, head of investment research at FXPrimus, said in a note. "In fact it's pricing in 100 percent probability of at least one more cut this year after this one, maybe even two more." "But with the highest interest rates in the G10 and risk aversion calming down - meaning carry trades becoming popular again - they have a lot of cutting to do," Gittler said, particularly since the market is also pricing in one more rate cut for the Australian dollar, the second-highest-yielding G10 currency. The Australian dollar erased earlier gains and slipped 0.3 percent at $0.7625, while its kiwi counterpart was steady at $0.7133. The currencies largely shrugged off data from China, Australia's largest trading partner, showing consumer price inflation accelerated at its weakest pace in six months as food prices rose at a slower pace. "The Aussie is off on the weak business confidence numbers from Australia. The Chinese numbers have had no effect," said Sue Trinh, senior currency strategist at RBC Capital Markets in Hong Kong. National Australia Bank's monthly survey of more than 500 firms showed its index of business conditions dipped 3 points to +8 in July. More»
Amwal Al Ghad English - 2016-08-09 08:39:53
Gold held steady Tuesday after recovering from one-week lows hit the day before, with investors using the price correction to hunt for bargains on hopes of more economic stimulus from central banks. Spot gold was mostly unchanged at $1,335 an ounce by 0330 GMT. The metal touched its lowest since July 29 at $1,329.55 on Monday. U.S. gold was nearly flat at $1,340.70 an ounce. "Gold prices are in defensive mode after suffering quite a bit on Friday. It reflects market's expectations of a rate hike by the U.S. Fed in December," Vyanne Lai, an economist at National Australia Bank. "However, the prices are not going to weaken significantly in the near term." Prices have been resilient in the face of a rising U.S. dollar and prospects of a rate hike as other countries are increasingly looking to raise stimulus, Lai said. The dollar index, which gauges the greenback against a basket of six major rivals, erased earlier slight losses and edged up 0.1 percent to as much as 96.507. The U.S. economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, Federal Reserve policymaker Jerome Powell was quoted as saying. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. There were significant long positions last week and the liquidation after the nonfarm payrolls data put pressure on prices, a Hong Kong-based precious metals trader said. "Investors are still putting more money into gold. There is something on the horizon that they should be looking, especially the U.S. elections. That will give uncertainty to the markets and will be good for gold." Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.67 percent to 973.81 tonnes on Monday. Asian shares stood atop one-year peaks on Tuesday as a desperate search for yield drove a record inflow into emerging market funds, while oil prices tried to sustain their latest bounce. Silver was mostly flat at $19.71 an ounce after touching a near two-week low on Monday. Platinum slipped 0.4 percent to $1,145. Palladium edged down 0.3 percent at $687.90, hovering near two-week low hit on Monday. More»
Amwal Al Ghad English - 2016-08-08 08:48:46
Gold hovered near one-week lows Monday, after falling about 2 percent in the previous session, as a stronger-than-expected U.S. jobs report likely boosted the possibility of a rate hike this year by the Federal Reserve. U.S. employment rose more than expected for the second month in a row in July and wages picked up, bolstering expectations of faster economic growth, and raising the probability of an interest rate increase this year. Spot gold was nearly flat at $1,335.40 an ounce by 0323 GMT. It earlier touched its lowest since July 29 at 1,331.36. U.S. gold edged down 0.2 percent to $1,341.50 an ounce. "Gold prices have fully digested the nonfarm payrolls data," said OCBC Bank analyst Barnabas Gan. "Yes, the U.S. economic fundamentals have picked up. But, the downside risks from whatever is happening from the Brexit is still unknown. Another uncertainty that market watchers will be looking at would be the U.S. presidential elections." Spot gold may test resistance at $1,339 per ounce, with a good chance of breaking above this level and bouncing more towards the next resistance at $1,346, according to Reuters technical analyst Wang Tao. "An initial dip through the Friday low during early Asian trade today was well supported and we have continued to see bargain hunters step in during Chinese trade," said MKS PAMP Group trader Sam Laughlin. Traders and top Wall Street banks expect the Fed to raise U.S. interest rates in 2016 after a strong July jobs report. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. Speculators added net longs in gold futures for the first time in four weeks in the week to Aug. 2. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.73 percent to 980.34 tonnes on Friday. "We may be seeing a turning point setting in for both gold and silver, as the impact of the nonfarm payroll number cannot be dismissed," INTL FCStone analyst Edward Meir said in a note. "This will now prompt investors to look for an increasingly aggressive Fed going into the second half of the year." Among other precious metals, spot silver hit a near 2-week low and was down 0.3 percent at $19.60 an ounce. It fell 3 percent on Friday. Spot platinum was up 0.4 percent at $1,146. Palladium was nearly flat at $693.55. More»
Amwal Al Ghad English - 2016-08-08 08:28:10
Oil prices rose on Monday, lifted by reports of renewed talks by some members of the Organization of the Petroleum Exporting Countries (OPEC) to restrain output. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $41.99 per barrel at 0643 GMT (2:43 a.m. ET), up 19 cents, or 0.5 percent, from their last close. Brent futures LCOc1 were trading at $44.42 per barrel, up 15 cents, or 0.34 percent. The price rise came on the back of renewed calls by some OPEC members to freeze production in a bid to rein in output that has been consistently outpacing demand, a demand that non-OPEC oil producing giant Russia was quick to dismiss. "OPEC members including Venezuela, Ecuador and Kuwait are said to be behind this latest reincarnation. But just like previous endeavors, it seems doomed to fail," said Matt Smith of ClipperData. Yet in the absence of an agreement, the crude and refined product glut is still weighing on markets. In China, July fuel exports rose over 50 percent from a year ago to a monthly record 4.57 million tonnes, official data showed on Monday, as easing demand growth and a surplus in refined oil products pushed refiners to increase shipments to overseas buyers. Because of the fuel glut, money managers have positioned themselves in expectation of lower prices, raising the amount of short positions in WTI futures that would profit from lower prices to a new all-time record. 1067651MSHT "In response to the negative market sentiment, parties such as hedge funds are once again taking speculative positions on further oil price declines," Dutch bank ABN Amro said on Monday. Meanwhile, the amount of oil rigs drilling in the United States rose to 381, the highest amount since March. On the demand side, AB Bernstein said that strong recent oil demand growth was set to weaken. "In July following the UK Brexit vote, the IMF downgraded global growth by 10 basis points in 2016 and 20 in 2017. This has negative implications for demand," the analysts said, adding that oil demand growth would slow to around 1.1 percent in the second half of 2016 and to below 1 percent next year. Such a slowdown would likely weigh on prices: "If record to near-record demand this summer for gasoline and crude oil failed to eat into the supply glut, then what happens to the glut once demand drops off this fall by around 1 million barrels per day?" asked the U.S.-based Schork Report in a note, adding it was bearish in its oil price outlook. More»
Amwal Al Ghad English - 2016-08-08 07:53:30
The dollar strengthened against the yen on Monday, extending its gains after strong U.S. job figures bolstered expectations of faster economic growth and raised the probability of a Federal Reserve interest rate increase this year. Nonfarm payrolls rose by 255,000 jobs in July, way above economists' median forecast of an increase of 180,000 while payroll growth in June was also revised up to 292,000, with hiring across sectors in the economy. Against the yen JPY=, the dollar firmed to 102.08 yen, gaining 0.3 percent in early Monday trade and extending its slow recovery from Tuesday's three-week low of 100.68. "The payrolls data puts markets on risk-on mode, making it difficult to buy the yen for now," said Yukio Ishizuki, currency strategist at Daiwa Securities. The euro EUR= dropped to as low as $1.1046 on Friday, its lowest level in over a week. In early Asian trade it stood at $1.1091, flat from late U.S. levels last week. The British pound GBP=D4 dropped to $1.3021, its lowest since early July, and last traded at $1.3078. The dollar's broad gains put its index against a basket of six major currencies .DXY =USD as high as 96.522 on Friday, rising 1.6 percent from its five-week low of 95.003 touched on Tuesday. Yet it is still less than halfway in its recovery from its fall from four-month high hit late last month of 97.569 because many investors think the Fed still has many hurdles to boost rates when the world economy looks fragile. The index last stood at 96.267, just below the 50 percent retracement of that four-month decline at 96.29. Although the U.S. payrolls data slightly increased bets on U.S. rate hikes, investors think the Fed will have to play it safe given uncertainty from Brexit and slowdown in China. Fed funds rate futures are pricing in less than a 20 percent chance that the Fed will raise rates in its next policy meeting in September and less than a 50 percent chance even by the end of year. "Markets think it will be difficult for the Fed to raise interest rates when many other countries in the world are looking to ease their monetary policies further," said Daiwa's Ishizuki. The Bank of England, the Reserve Bank of Australia and the Bank of Japan took easing steps during the past week or so. Elsewhere, the Australian dollar held relatively firmer, staying near its peaks in recent months despite the Australian central bank's rate cut last week. The Aussie stood little changed at $0.7616 AUD=D4, not far from its three-week high of $0.7665 hit just before Friday's payrolls data. A rise beyond its 10-week peak of $0.7676 touched on July 15 would push it to its highest level since early May. Despite the latest rate cut by the Reserve Bank of Australia, the currency still offers among the highest yields in the developed world, attracting investors seeking to escape negative interest rates in Europe and Japan. The currency showed a muted response to Chinese trade figures. Exports fell 4.4 percent, compared to market forecast of 3.0 percent, while imports tumbled a bigger-than-expected 12.5 percent versus consensus of 7.0 percent drop. More»
Amwal Al Ghad English - 2016-08-06 09:47:57
Sterling is set to plunge further against the dollar in the medium to long term due to the uncertainty following the U.K.'s vote to leave the European Union. In fact, the currency is expected to hit $1.25 sooner than later, a number of analysts told CNBC. "I have a 1.25 forecast for GBP/USD over the next three months. If the data remains weak, that forecast risks being revised further lower," Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets told CNBC via email. "The recalibration of macro assumptions post-Brexit has yet to force the Bank of England to forecast annual negative growth. However, the scale of the immediate growth revisions has prompted an aggressive policy response, in large part as the bank attempts to get ahead of what is expected to be increasingly weak real economy data." Stretch explained that if the data confirm the worst fears, then the BOE will again swing into action in November -- which could lead to a further revision of sterling. Sterling suffered session lows against the dollar, off by more than 1.5 percent, after the Bank of England cut interest rates for the first time in seven years by 25 basis points to 0.25 percent. The BoE also announced a new Term Funding Scheme worth up to £100 billion and purchase of up to £10 billion in U.K corporate bonds. A £60 billion hike in the bank's government bond-buying program, known as quantitative easing, to £435 billion was also announced. Currency volatility was at its highest after the Brexit vote, with dramatic moves in sterling from $1.50 to a 31-year low of $1.32. While it continues to remain under pressure, sterling is currently trading a touch above the dollar at $1.31 levels. The decision from the BoE on Thursday saw sterling down to $1.31 levels, a move that the BoE's deputy governor Dr Ben Broadbent saw as "relatively small." Speaking to BBC radio on Friday morning, Broadbent said the pound's drop after the BoE's decision on Thursday was relatively small compared with its fall after the June vote to leave the EU. He said he was pretty confident the BoE's stimulus package would have some effect and that he did not agree the central bank's actions reflected panic. Uncertainties ahead? But with the U.K. economy heading into an even lower interest rate environment and uncertainties about Brexit loom, analysts say sterling will continue to fall. "Heightened political risk and economic uncertainty will prevent a strong recovery in sterling in the near-term, even if the economic outlook brightens," Kallum Pickering, Senior U.K. economist at Berenberg told CNBC via email. "When the Brexit divorce negotiations begin to bear fruit, thereby reducing economic uncertainty, sterling should then start to return to more normal levels." However some analysts think we are beginning to see some reprieve in sterling which may last few months but it will head lower again. Craig Orlam, Senior Market Analyst at Oanda told CNBC that the trigger for this could either be more BoE stimulus, the triggering of Article 50 or more deterioration of the U.K. economy. "Prior to that, $1.31 (in GBP/USD) may continue to offer significant support, as it did before and after the BoE announcement, while $1.35 could provide a ceiling to the upside," Erlam said, adding, "I do see $1.31 being broken and the pair trading back around $1.28 post-Brexit lows and possibly towards $1.25. Although we may need to wait as long as early next year for this." More»
Amwal Al Ghad English - 2016-08-06 09:03:35
Oil prices ended lower on Friday as the dollar surged on robust U.S. jobs data, reasserting its influence over commodities as two days of short-covering and bargain-hunting in crude fizzled, bringing attention back to oversupplies. Also on Friday, the number of rigs operating in U.S. oil fields rose for a sixth straight week, increasing by 7 rigs to a total of 381. At this time last year, drillers had 670 rigs in fields. The dollar index rose 0.45 percent after data showed U.S. employment rose more than expected in July and wages picked up, raising the probability of a rate hike by the Federal Reserve this year. A stronger dollar makes oil and other commodities denominated in the greenback less affordable to holders of the euro and other currencies, typically denting demand for such raw materials. The reverse is the case when the dollar falls. In recent weeks, however, the dollar/oil trade appeared to have broken down as crude futures fell despite the U.S. currency weakening. "The dollar/oil correlation may be back today to pressure crude but the reality is we just have too much oil supply out there to continue supporting prices at these levels," said Phil Davis, trader at PSW Investments in San Diego, California. "We might hold above $40 next week but I doubt we will be trading at $42 when the new WTI front-month comes into play." U.S. West Texas Intermediate (WTI) crude crude futures settled 13 cents lower, or 0.31 percent, at $41.80 a barrel. International Brent crude futures were trading down 2 cents at $44.27 per barrel. Friday's slump ended a mid-week rally driven in large part by those holding short positions booking profits from a more than 20 percent fall in oil prices between June and early August, traders said. "Since there was no news yesterday that might have triggered the price rise, this points to short-covering," Commerzbank analyst Carsten Fritsch said. "Clearly many market participants were caught on the hop by the increase in prices following the publication of U.S. inventory data on Wednesday," he said. For the week though, Brent was on track for a gain of about 3 percent while WTI was marginally lower, helped by technical short-covering and bargain-hunting that pushed oil prices up by nearly 6 percent over the past two sessions. The mid-week rebound came after WTI broke the key $40-per-barrel support on Monday and settled below that level on Tuesday for the first time since April. Even so, WTI timespreads weakened earlier this week, with the December contract for 2016 versus 2017 reaching a discount of more than $4 a barrel, its widest in nearly eight months. That indicated eroding demand for oil slated for nearer-term delivery. Rebalancing the oil market has proved a long and frustrating process as oil-exporting countries hit hardest by the 2014-15 price slump were themselves some of the fastest-growing oil consumers. Some traders also worry that net Chinese oil imports will weaken this year despite China surpassing South Korea as the top Asian buyer of North Sea Forties crude. "A major pillar of oil demand is therefore on course to ease considerably over the coming months," Stephen Brennock, analyst at London-based broker PVM, said. Still, China surpassed South Korea as the top Asian buyer of North Sea Forties crude this year, while trading house Trafigura was aggressively targeting China's newest buyers by extending credit to two of the country's independent refiners. More»
Amwal Al Ghad English - 2016-08-04 17:49:16
Sterling fell on Thursday, on track for its largest one-day decline in a month against the dollar, after the Bank of England cut interest rates and restarted bond purchases in a move to mitigate the impact of Britain's vote to exit the European Union. The dollar, meanwhile, gained against a basket of currencies for a second straight session, as investors continued to balance positions ahead of Friday's crucial U.S. nonfarm payrolls report for July. The focus, however, remained squarely on the British pound in the wake of the widely-expected BoE decision. As well as cutting rates to a record-low 0.25 percent from 0.5 percent, the BoE launched two new schemes, one to buy 10 billion pounds of high-grade corporate bonds and another - potentially worth up to 100 billion pounds - to ensure banks keep lending even after the rate cut. Sterling sank 1.5 percent against the dollar in the first half hour after the decision and as BoE Governor Mark Carney started speaking. It was last down 1.49 percent at $1.31. "The BoE's dovish guidance and bearish outlook for growth will leave the pound at risk of further falls in the months ahead," said Joe Manimbo, senior market analyst at Western Union Business Solutions. "Still, market positioning and how negative bets on the pound have reached stretched levels could help to slow moves to the downside." The Australian and New Zealand dollars, which have suffered in the past week from worries that central banks globally would not meet market expectations for further policy easing, rose around half a percent against the U.S. dollar. Sterling money markets moved to price in further falls in the Bank of England's interest rates after it said most of its policymakers are likely to back a cut to zero if economic data was in line with forecasts in the months ahead. On the other hand, the dollar, driven to a six-week low after a poor U.S. second-quarter gross domestic product (GDP) reading last week, drew strength from the gains against sterling. The dollar index gained 0.17 percent to 95.72, holding above a low of 95.003 touched earlier this week. Ahead of Friday's U.S. jobs report, fed fund futures have priced in a 12 percent chance the Fed will hike rates at its policy meeting next month, unchanged from Wednesday, according to the CME's FedWatch tool. For the December meeting, futures show a 33 percent probability of a hike, compared with 40 percent late on Wednesday. More»
Amwal Al Ghad English - 2016-08-04 09:09:51
Gold slipped further on Thursday as the dollar firmed on the back of strong economic data and Asian stocks ticked up ahead of the Bank of England's expected rate cut later in the day. Investors bet the BoE would cut interest rates for the first time in more than seven years to ward off recession following Britain's vote in June to leave the European Union.The central bank is expected to halve its benchmark interest rate to a record low of 0.25 percent when it makes a monthly policy statement at 1100 GMT. Spot gold was down 0.4 percent at $1,352.10 an ounce by 0340 GMT, after declining 0.4 percent in the previous session. U.S. gold fell 0.5 percent to $1,358.60 an ounce. More»
Amwal Al Ghad English - 2016-08-04 07:58:33
The British pound sterling inched lower Thursday as investors anticipated the Bank of England would cut interest rates to a record low later in the session, while a rebound in oil prices from four-month lows lifted Asian stocks. The sterling slipped 0.1 percent to $1.3301 GBP=D4, but remained some distance from its three-decade low of $1.2798 hit almost a month ago. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.5 percent, led by gains in resource shares, recovering some ground lost in Wednesday's 1.5 percent decline. European shares were also set to open higher, with financial spreadbetter CMC Markets expecting Britain's FTSE 100 .FTSE to rise 0.1 percent, and Germany's DAX GDAXI and France's CAC 40 .FCHI to start the day up 0.3 percent. The Bank of England is expected to cut its policy rate by at least a quarter percentage point to 0.25 percent, making its first reduction since 2009 in a bid to ward off a recession that appeared increasingly likely after the United Kingdom voted to quit the European Union in June. Currency dealers were uncertain how sterling would react to a rate cut, as it has been largely factored in and the scale of sterling's declines since the Brexit vote could limit the immediate downside. "Given the market has a 25 basis-point cut priced at 100 percent, one would expect a huge spike in GBP/USD if they fail to ease," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note. "But the real issue is whether they cut by 50 basis points and give a strong indication of quantitative easing in the September meeting." Britain's economy is slowing at the fastest pace since the financial crisis, based on Markit's monthly all-sector Purchasing Managers' Index on Wednesday, which recorded the steepest month-on-month decline on record. Many market players also believe the BoE may resume its multi-billion-pound quantitative easing program of government bond purchases. The euro fell 0.1 percent to $1.1141 EUR=EBS, retreating from its 5-week high of $1.1234 touched on Monday.Oil, which jumped more than 3 percent on Wednesday, extended gains in Asian trade on Thursday, as larger-than-expected draw on gasoline stocks in the United States eased concerns about global supply glut. Brent crude futures LCOc1 rose 0.7 percent on Thursday to $43.38 per barrel, extending its recovery from Monday's four-month low of $41.41. U.S. crude CLc1 gained 0.8 percent to $41.16 per barrel. Energy shares also rose, contributing to gains on Wall Street, with the S&P 500 index .SPX closing up 0.3 percent on Wednesday. Japan's Nikkei .N225, which earlier touched a near-four-week low on Thursday, rebounded to end the day up 1.1 percent as the yen weakened. Against the yen, the dollar was 0.4 percent stronger at 101.650 yen JPY=D4, inching away from Monday's low of 100.68 yen. Bank of Japan Deputy Governor Kikuo Iwata said on Thursday that a comprehensive review of the central bank's monetary policy next month would focus on the transmission mechanism and obstacles to its monetary policy. However, it is not meant to offer a specific direction for future monetary policy, he said. Japanese government bonds, which suffered their worst sell-off in more than three years this week on worries the Bank of Japan may be running out of realistic easing options, remained under pressure. The 10-year JGB yield rose 1 basis point to minus 0.080 percent JP10YTN=JBTC. The broad increase in risk appetite helped Chinese shares recover some ground lost earlier. China's CSI 300 index .CSI300 gained 0.2 percent, and the Shanghai Composite .SSEC advanced 0.1 percent. Hong Kong's Hang Seng .HSI climbed 0.6 percent. The dollar bounced back 0.7 percent from Monday's five-week low against a basket of six major currencies as investors looked to July payrolls data on Friday. The dollar index added 0.1 percent to 95.647 .DXY =USD on Thursday, though it is still far below a 4 1/2-month peak of 97.569 hit last week. A report from payrolls processor ADP showed on Wednesday U.S. private employers added 179,000 jobs in July, a tad above market expectations and bolstering hopes that Friday's data could show moderate growth in employment. Soft second-quarter U.S. GDP data and some other mixed data have dented the dollar as they reduced expectations that the Federal Reserve will raise rates this year. "A September rate hike could only be justified if July and August’s payrolls prove exceptionally strong," David Lafferty, chief market strategist at Natixis Global Asset Management, wrote in a note. "However, a post-election tightening in December is still in the cards provided the macro data doesn’t deteriorate." Chicago Federal Reserve Bank President Charles Evans said on Wednesday that one rate increase might be appropriate this year, despite his worry that inflation is undershooting the Fed's 2 percent target, because "the real economy is doing quite well." More»