Treasuries Move Sharply Higher Amid Geopolitical Concerns

Trading 05 sept 2017 Commentaire »

Following the long holiday weekend, Treasuries showed a significant move to the upside during trading on Tuesday.

Bond prices moved sharply higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 8.7 basis points to 2.070 percent.

With the steep drop during the session, the ten-year yield slumped to its lowest closing level in nearly ten months.

The rally by treasuries came as traders looked to safe havens amid geopolitical concerns following news North Korea conducted a major nuclear test on Sunday.

President Donald Trump condemned the nuclear test in posts on Twitter, saying North Korea's words and actions continue to be very hostile and dangerous to the U.S.

Trump said the U.S. is considering stopping all trade with any country doing business with North Korea in response to the test.

Treasuries also benefited from comments from Federal Reserve officials that were seen as dovish regarding the outlook for interest rates.

Minneapolis Fed President Neel Kashkari said it is very possible that the central bank's four interest rate hikes since late 2015 could now be doing "real harm" to the economy.

Additionally, inflation is falling "well short" of target so the Fed should be cautious about raising interest rates until it is confident of a rebound, said Fed Governor Lael Brainard.

On the U.S. economic front, the Commerce Department released a report showing a sharp pullback in factory orders in the month of July.

The Commerce Department said factory orders plunged by 3.3 percent in July after surging up by an upwardly revised 3.2 percent in June.

Economists had expected orders to tumble by 3.2 percent compared to the 3.0 percent jump originally reported for the previous month.

Any additional international news could impact trading on Wednesday, although traders are also likely to keep an eye on the Institute for Supply Management's report on service sector activity in the month of August.

The Fed is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.


The material has been provided by InstaForex Company - www.instaforex.com

Crude Oil Jumps To Highest Since August 11

Trading 05 sept 2017 Commentaire »

Crude oil futures touched the highest in four weeks Tuesday, supported by a stronger dollar and concerns about rigs in the Gulf of Mexico.

Just a week after Hurricane Harvey disrupted refineries along the Texas coast, Hurricane Irma is bearing down on Caribbean islands and may be heading for the Gulf of Mexico as a category 4 or 5 storm.

Oct. WTI oil climbed $1.37, or 2.9%, to settle at $48.66/bbl, the highest since August 11.

In economic news, the Commerce Department released a report on Tuesday showing a sharp pullback in factory orders in the month of July.

Factory orders plunged by 3.3 percent in July after surging up by an upwardly revised 3.2 percent in June.

The U.S. dollar weakened as a pair of Federal Reserve officials hinted the central bank will keep interest rates on hold this year.

Minneapolis Fed President Neel Kashkari said it is very possible that the central bank's four interest-rate hikes since late 2015 could now be doing "real harm" to the economy.

Also, inflation is falling "well short" of target so the Federal Reserve should be cautious about raising interest rates until it is confident of a rebound, Fed Governor Lael Brainard.


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Dollar Drops Against Yen As Investors Flock To Safe Havens

Trading 05 sept 2017 Commentaire »

The risk appetite among investors is decreasing today as geopolitical concerns have again returned to the forefront. The dollar is losing ground against all of its major rivals Tuesday afternoon, but it is especially weak against the Japanese Yen. Traders are looking to hide in safe havens like the Yen and gold as tensions between the United States and North Korea have flared again.

North Korea successfully tested a hydrogen bomb over the weekend, which has put traders in a nervous mood. President Donald Trump condemned the nuclear test, saying North Korea's words and actions continue to be very hostile and dangerous to the U.S. Trump said the U.S. is considering stopping all trade with any country doing business with North Korea in response to the test.

After reporting a substantial increase in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Tuesday showing a sharp pullback in factory orders in the month of July.

The Commerce Department said factory orders plunged by 3.3 percent in July after surging up by an upwardly revised 3.2 percent in June. Economists had expected orders to tumble by 3.2 percent compared to the 3.0 percent jump originally reported for the previous month.

The dollar dropped to a low of $1.1940 against the Euro Tuesday, but has since rebounded to around $1.19.

Eurozone retail sales declined in July due to a fall in food sales, data from Eurostat showed Tuesday. Retail sales volume decreased 0.3 percent month-on-month in July, partially offsetting June's 0.6 percent increase. The pace of decline matched economists' expectations.

Eurozone private sector logged steady growth in August, final data from IHS Markit showed Tuesday. The composite output index came in at 55.7 in August, matching July's reading but down slightly from the flash estimate of 55.8.

The buck has fallen to a 3-week low of $1.3015 against the pound sterling this afternoon, from an early high of $1.2905.

The British service sector expanded at the slowest pace in almost a year in August as subdued client demand and heightened uncertainty about the domestic economic outlook weighed on business activity.

The services Purchasing Managers' Index fell more-than-expected to 53.2 in August from 53.8 in July, survey data from IHS Markit and the Chartered Institute of Procurement & Supply showed Tuesday. The expected reading was 53.5.

Like-for-like sales in the United Kingdom climbed 1.3 percent on year in August, the British Retail Consortium said on Tuesday, accelerating from the 0.9 percent increase in July. Food sales remained firm, advancing an annual 3.2 percent, slowing from 3.4 percent in the previous month.

The greenback reached an early high of Y109.931 against the Japanese Yen Tuesday, but has since retreated to around Y108.825.

The services sector in Japan continued to expand in August, although at a slower pace, the latest survey from Nikkei showed on Tuesday with a Services PMI score of 51.6. That's down from 52.0 in July, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.


The material has been provided by InstaForex Company - www.instaforex.com

*Fed's Kashkari: Recent Rate Hikes May Have Harmed Economy

Trading 05 sept 2017 Commentaire »

Fed's Kashkari: Recent Rate Hikes May Have Harmed Economy


The material has been provided by InstaForex Company - www.instaforex.com

Gold In Rally Mode Amid Dovish Fed Comments

Trading 05 sept 2017 Commentaire »

Gold futures continued to soar Tuesday, hitting yearly highs amid geopolitical concerns and signs the Federal Reserve will relent on interest rate hikes.

Dec. gold gained $14.10, or 1.1%, to settle at $1,344.50/oz, the highest since September 2016.

Markets were on edge amid reports that North Korea is moving ICBM missiles towards its West Coast in preparation for another test launch.

Meanwhile, Minneapolis Fed President Neel Kashkari said it is very possible that the central bank's four interest-rate hikes since late 2015 could now be doing "real harm" to the economy.

Also, inflation is falling "well short" of target so the Federal Reserve should be cautious about raising interest rates until it is confident of a rebound, Fed Governor Lael Brainard.

In economic news, the Commerce Department released a report on Tuesday showing a sharp pullback in factory orders in the month of July.

Factory orders plunged by 3.3 percent in July after surging up by an upwardly revised 3.2 percent in June.


The material has been provided by InstaForex Company - www.instaforex.com

American Airlines Makes Emergency Landing Over Mechanical Issue

Trading 05 sept 2017 Commentaire »
An American Airlines Boeing 767 made an emergency landing Monday at Norfolk International Airport (ORF) in Norfolk, Virginia, due to the aircraft's mechanical errors. No injuries were sustained by its 192 passengers crew members upon landing. An electrical odor was detected on the aircraft of Flight 235. This caused the airline crew to plan for an unscheduled stop. The flight was heading to Miami International Airport from John F. Kennedy International Airport. 

*Zuckerberg: Trump's DECA Decision Is « Cruel »

Trading 05 sept 2017 Commentaire »

Zuckerberg: Trump's DECA Decision Is "Cruel"


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Russell Wilson’s Weight Loss Diet Consists Of Eating 4,800 Calories

Trading 05 sept 2017 Commentaire »
Russell Wilson changed his calorie intake and diet this offseason in order to get faster and leaner. But instead of eating fewer calories, he’s eating more. Wilson was taking in around 2,700 calories per day in March when he visited Philip Goglia. Now, Wilson takes in around 4,800 calories per day. 

Women Are Key To History Of Human Migration, Bones Show

Trading 05 sept 2017 Commentaire »
Women were the adventurers of the early Bronze Age, moving around Europe and spreading culture as they went.

These Tech Companies Show The Vast Importance Of Immigrants, Dreamers

Trading 05 sept 2017 Commentaire »
Many tech industry leaders condemned President Donald Trump’s decision to end an immigration policy called Deferred Action for Childhood Arrivals. Facebook founder Mark Zuckerberg and Apple CEO Tim Cook are just a few of the businessmen speaking out in defense of immigrants. The impending threat of mass deportation threatens the nation’s startup ecosystem.