COLOMBIA: Annual Inflation Rate Ends 2017 At 4.09%, Slightly Above 4% Limit

Trading 09 jan 2018 Commentaire »

The Colombian Consumer Price Index (CPI) rose 4.09% in December 2017 on an annual basis, decelerating from the 4.12% increase in November, when it grew at the fastest pace since last May, said the country's statistics office.

The Colombian inflation rate closed the year slightly above the 4% limit set by the central bank for 2017, and also above analysts' expectations of 4.01%.

The most significant contributions to inflation in Colombia in December came from housing, transportation and food expenses.

On a monthly basis, consumer prices rose 0.38% in December, also accelerating from November (+0.18%).


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MEXICO: PPI Decelerates To 4.65% In December On Annual Basis

Trading 09 jan 2018 Commentaire »

Mexico's National Producer Price Index posted a 4.65% annual increase in December, decelerating when compared to the 5.19% advance from November, said the country's statistics office.

In the monthly comparison, the Mexican PPI increased by 0.46% in December, also decelerating from November (+1.15%). The monthly result was driven by an increase in prices of manufacturing (+0.27%), services (+0.71%), and primary (0.90%) activities.


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Treasuries Show Significant Move To The Downside

Trading 09 jan 2018 Commentaire »

After ending the previous session roughly flat, treasuries showed a notable move to the downside during trading on Tuesday.

Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 6.6 basis points to 2.546 percent.

With the significant increase during the session, the ten-year yield reached its highest closing level in nearly ten months.

The weakness among treasuries came as stocks on Wall Street rose to new record highs amid ongoing optimism about the economic outlook.

Treasuries remained stuck in the red following the release of the results of the Treasury Department's auction of $24 billion worth of three-year notes, which attracted above average demand.

The three-year note auction drew a high yield of 2.080 percent and a bid-to-cover ratio of 3.13, while the ten previous three-year note auctions had an average bid-to-cover ratio of 2.86.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Reports on import and export prices and wholesale inventories may attract attention on Wednesday, although traders may look ahead to more closely watched reports on retail sales and producer and consumer prices due later in the week.

Bond traders are likely to keep an eye on the results of the Treasury Department's auction of $20 billion worth of ten-year notes.


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MEXICO: December Inflation Accelerates To Highest Level In 16 Years

Trading 09 jan 2018 Commentaire »

Mexico's National Consumer Price Index rose 6.77% in December from a year before, ending 2017 way above the 4% limit set by the country's central bank. It also accelerated when compared to the 6.63% rate posted in November. Currently, consumer prices inflation in Mexico is the highest since May 2001.

The annual inflation in December was a result of higher prices for fruits, vegetables, energy and agricultural goods.

In the monthly comparison, Mexico's consumer price index decelerated to 0.59% in December after accelerating sharply in November (+1.03%). The result was above the 0.42% increase expected by analysts.

The core inflation, which excludes food and energy prices, was at 4.87% in December a yearly basis and advanced 0.42% on a monthly comparison.


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Dollar Little Changed As Data Drought Persists

Trading 09 jan 2018 Commentaire »

The dollar is turning in a mixed performance against its major rivals Tuesday afternoon, but remains little changed overall. The buck is holding onto modest gains against the Euro and the pound sterling, but is down against the Japanese Yen.

The continued lack of U.S. economic data is keeping some investors on the sidelines. Import and export prices are due to be reported Wednesday morning, as well as wholesale inventories. Traders can look forward to weekly jobless claims and the producer price index on Thursday, as well as retail sales and inflation data Friday morning.

The dollar dropped to a low of $1.1975 against the Euro Tuesday, but has since bounced back to around $1.1930.

The euro area unemployment rate declined to the lowest since 2009, figures from Eurostat showed Tuesday. The jobless rate dropped to 8.7 percent in November from 8.8 percent in October. This was the lowest since January 2009. The rate came in line with expectations.

Germany's industrial production rebounded at a faster than expected pace in November, figures from Destatis revealed Tuesday. Industrial output expanded 3.4 percent month-on-month in November, reversing a revised 1.2 percent drop in October. Output was expected to grow 1.8 percent.

Germany's exports recovered in November and imports grew at a faster pace, data published by Destatis showed Tuesday.

Exports climbed 4.1 percent on month in November, in contrast to a 0.3 percent drop registered in October. The rate also exceeded the expected rate of 1.2 percent.

At the same time, monthly growth in imports accelerated to 2.3 percent from 1.8 percent in October. Imports were forecast to climb 0.6 percent.

The trade surplus rose to a seasonally adjusted EUR 22.3 billion from around EUR 19.9 billion in October.

France's foreign trade gap widened in November, as exports fell faster than imports, data from the customs office showed Tuesday. The trade deficit rose to EUR 5.7 billion in November from EUR 5.3 billion in the previous month.

Meanwhile, economists had expected the deficit to narrow to EUR 4.7 billion.

The French current account gap widened in November from a month earlier, data from the Bank of France showed Tuesday. The current account deficit rose to EUR 3.3 billion in November from EUR 2.6 billion in October.

The buck climbed to a high of $1.3504 against the pound sterling Tuesday, but has since eased back to around $1.3535.

The greenback fell to a low of Y112.363 against the Japanese Yen Tuesday, but has since rebounded to around Y112.575.

Japan's consumer confidence dropped unexpectedly in December, though slightly, survey data from the Cabinet Office showed Tuesday. The seasonally adjusted consumer confidence index decreased to 44.7 in December from November's 50-month high of 44.9. Meanwhile, economist had expected the index to rise to 45.0.


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COLOMBIA: Government And ELN Resume Talks On Ceasefire Extension

Trading 09 jan 2018 Commentaire »

A new Colombian government delegation and leaders of the National Liberation Army (ELN) guerrilla group launched the fifth round of peace talks in Quito, Ecuador, aiming at extending the bilateral ceasefire that expires today.

The ELN indicated said that "the ceasefire contributed to alleviating the humanitarian situation of millions of compatriots, especially in those regions where the situation of war and political persecution against leaders and communities opposed to the dominant regime is most critical."

On Monday, the new chief negotiator of the Colombian government, Gustavo Bell, said it would be ideal to extend the truce with the ELN and achieve "a more robust ceasefire agreement" as well as "preserve the achievements" that were reached through dialogue in the last few months.


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Crude Oil Soars Above $63 For 3-Year High

Trading 09 jan 2018 Commentaire »

Crude oil futures continued to surge Tuesday on expectations the global oil market will soon re-balance. OPEC appears determined to end the global supply glut with disciplined output quotas in 2018.

The American Petroleum Institute reports its weekly inventories numbers this afternoon, followed by the government's official report tomorrow morning.

Analysts say U.S. output may have levelled off over the holidays. Baker Hughes on Friday said the U.S. rig count dropped by five in the last week of the year.

Feb. WTI oil gains $1.23, or 2%, to settle at $62.96/bbl, the highest finish since December 2014.

Eurozone unemployment rate declined to the lowest since 2009 as robust activity created more jobs in the 19-nation currency bloc.

The jobless rate dropped to 8.7 percent in November, in line with economists' expectations, from 8.8 percent in October, figures from Eurostat showed Tuesday. This was the lowest since January 2009.


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*Jamie Dimon: Our Economist Is Wrong, US GDP Will Grow 4% This Year

Trading 09 jan 2018 Commentaire »

Jamie Dimon: Our Economist Is Wrong, US GDP Will Grow 4% This Year


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BRAZIL: Retail Sales Rise More Than Expected In November

Trading 09 jan 2018 Commentaire »

Retail sales in Brazil rose 0.7% in November from October, the country's statistics office said on Tuesday. The results, which exclude sales of vehicles and construction materials, were higher than the 0.2% increase expected by analysts polled by Ag?ncia CMA.

On an annual basis, retail sales grew for the eighth consecutive month in November, at a 5.9% rate, also above expectations of a 3.4% rise. It was the second highest increase of 2017.

Year-to-date, retail sales in Brazil rose 1.9%. In the 12 months through October, there was a 1.1% rise. Private consumption in Brazil represents around 60% of the country's Gross Domestic Product (GDP).

Compared to October, five out of the eight retail sectors surveyed posted higher sales in November, highlighting the sectors with a strong presence in Internet sales, such as other articles of personal and domestic use (+8.0%) and furniture and household appliances (+ 6.1%). At the opposite end, drawbacks in fuels and lubricants prices (-1.8%) are noteworthy, as well as equipment and supplies for office, computer, and communication (-5.8%).

Annually, also five of the eight sectors posted higher sales, with hypermarkets, supermarkets, food products, beverages and tobacco (+ 5.2%) and furniture and appliances (+ 15.6%) posting the best results. On the low side, fuel and lubricants (-2.5%) and equipment and supplies for office, computer, and communication (-6.8%) fell the most.


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Gold Drifting Lower After Recent Gains

Trading 09 jan 2018 Commentaire »

Gold prices slipped Tuesday, trimming strong recent gains in the absence of first-tier economic data.

The dollar recovered versus the euro, helping dent gold prices after 4-month highs for the precious metal.

Feb. gold down $6.70, or 0.5%, to settle at $1,313.70/oz

Germany's industrial production and exports recovered at a faster-than-expected pace in November, suggesting robust economic activity towards the end of 2017.

Industrial output expanded 3.4 percent month-on-month in November, reversing a revised 1.2 percent drop in October, Destatis reported Tuesday.

Growth in production was the biggest since September 2009. Output was expected to grow moderately by 1.8 percent.

Eurozone unemployment rate declined to the lowest since 2009 as robust activity created more jobs in the 19-nation currency bloc.

The jobless rate dropped to 8.7 percent in November, in line with economists' expectations, from 8.8 percent in October, figures from Eurostat showed Tuesday. This was the lowest since January 2009.

The number of unemployed decreased by 107,000 from the previous month to 14.26 million in November. From November 2016, people out of work decreased by 1.56 million.


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