*BRAZIL: CENTER-SOUTH SUGARCANE CRUSH IS 11.60% UP FROM LAST YEAR

Trading 11 juil 2018 Commentaire »

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*USIMINAS: COMPANY HAS NO DECISION ON BLAST FURNACE RESUMPTION IN CUBATIO

Trading 11 juil 2018 Commentaire »

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Treasuries Move To The Upside Amid Renewed Trade Concerns

Trading 11 juil 2018 Commentaire »

With traders expressing renewed concerns about a global trade war, treasuries showed a notable move to the upside during trading on Wednesday.

After seeing modest strength for much of the session, bond prices climbed to new highs in late-day trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.1 basis points to 2.842 percent.

Treasuries benefited from their appeal as a safe haven after President Donald Trump's administration proposed new tariffs on China.

Trump has ordered U.S. Trade Representative Robert Lighthizer to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports.

The move comes after the U.S. imposed a 25 percent tariff on $34 billion worth of Chinese imports last Friday, leading China to retaliate by imposing tariffs on $34 billion worth of U.S. exports.

"For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition," Lighthizer said. "We have been very clear and detailed regarding the specific changes China should undertake."

"Unfortunately, China has not changed its behavior - behavior that puts the future of the U.S. economy at risk," he added. "Rather than address our legitimate concerns, China has begun to retaliate against U.S. products. There is no justification for such action."

China has vowed to take countermeasures in response to the new tariffs, which will not effect until after a two-month review process.

In U.S. economic news, the Labor Department released a report showing producer prices increased by slightly more than expected in the month of June.

The Labor Department said its producer price index for final demand rose by 0.3 percent in June after climbing by 0.5 percent in May. Economists had expected prices to edge up by 0.2 percent.

Excluding food and energy prices, core producer prices also climbed by 0.3 percent in June, matching the increase seen in May. Core prices had been expected to rise by 0.2 percent.

Compared to the same month a year ago, producer prices were up by 3.4 percent in June, representing the largest 12-month increase since a 3.7 percent jump in November of 2011.

Meanwhile, the Treasury Department auctioned $22 billion worth of ten-year notes, attracting above average demand.

The ten-year note auction drew a high yield of 2.859 percent and a bid-to-cover ratio of 2.57, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.48.

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

Looking ahead, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $14 billion worth of thirty-year bonds on Thursday.

Reports on consumer prices and weekly jobless claims may also attract attention on Thursday, although traders are also likely to keep an eye on any developments regarding trade.


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BRAZIL: DI Rates Open Slightly Lower, But The Course Is Rapidly Reversed

Trading 11 juil 2018 Commentaire »

The one-day interbank deposit futures rates (DI rates) in Brazil opened slightly lower Wednesday in an unexpected move to continue the recent return of premiums, but rapidly reversed its course. The increased risk aversion abroad, following a new U.S. move in the trade war against China, the steady rise of the locally traded U.S. dollar and the local news weigh on the forward curve.

Luis Felipe Laudisio, a fixed-income trader at Renascenia Corretora, recalls that the futures interest market has been "completely against the tide" since last Friday.

According to him, the DI rates tried to continue this move as early as the opening of the session, but the announcement of a new list of Chinese products to be tariffed by the United States causes the USD to appreciate, pushing the curve.

For Icatu Vanguarda's multi-market strategist Dan Kawa, the domestic scenario remains "extremely challenging," pressing local businesses.

"With the government weakening, Congress approved some measures of negative fiscal impact, while the economic reform agenda has slipped," he noted.

Near the middle of the session, the January 2019 DI contract rate was at 6.800%, from 6.795% in the previous settlement, while the January 2020 DI rate was at 8.14, from 8.12%. The January 2021 DI contract rate was stable at 9.09%.


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*BRAZIL: LOCALLY TRADED USD RISES 0.55%, TRADING AT R$ 3.9180

Trading 11 juil 2018 Commentaire »

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*BRAZIL: LOCALLY TRADED USD OPENS HIGHER ON NEW U.S. TARIFFS AGAINST CHINA

Trading 11 juil 2018 Commentaire »

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Dollar Gaining Ground As Trade War Escalates

Trading 11 juil 2018 Commentaire »

The dollar is strengthening against its major rivals Wednesday afternoon on renewed concerns over the trade war between the U.S. and China. President Donald Trump has ordered U.S. Trade Representative Robert Lighthizer to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports.

The move comes after the U.S. imposed a 25 percent tariff on $34 billion worth of Chinese imports last Friday, leading China to retaliate by imposing tariffs on $34 billion worth of U.S. exports.

Producer prices in the U.S. increased by slightly more than expected in the month of June, according to a report released by the Labor Department on Wednesday.

The Labor Department said its producer price index for final demand rose by 0.3 percent in June after climbing by 0.5 percent in May. Economists had expected prices to edge up by 0.2 percent.

A report released by the Commerce Department on Wednesday showed wholesale inventories in the U.S. increased by slightly more than expected in the month of May. The Commerce Department said wholesale inventories climbed by 0.6 percent in May after inching up by 0.1 percent in April. Economists had expected inventories to rise by 0.5 percent.

The dollar slid to a low of $1.1758 against the Euro Wednesday, but has since bounced back to around $1.1680.

The buck dipped to a low of $1.3285 against the pound sterling Wednesday morning, but has since rebounded to around $1.3215.

The greenback has broken out to a 6-month high of Y111.965 against the Japanese Yen Wednesday, from an early low of Y110.766.

Producer prices in Japan were up 0.2 percent on month in June, the Bank of Japan said on Wednesday. That was in line with expectations and down from 0.6 percent in May.

Core machine orders in Japan fell 3.7 percent on month in May, the Cabinet Office said on Wednesday - coming in at 907.9 billion yen. The headline figure beat expectations for a decline of 4.9 percent following the 10.1 percent spike in April.

Japan's tertiary activity index increased for the second straight month in May, though marginally, data from the Ministry of Economy, Trade and Industry showed Wednesday. The tertiary activity index edged up 0.1 percent month-over-month in May, following a 1.0 percent rise in April. In contrast, economists had expected a 0.3 percent decrease for the month.


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*BRAZIL: NEW DEVELOPMENTS IN U.S.-CHINA TRADE WAR WORRY INVESTORS

Trading 11 juil 2018 Commentaire »

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*BRAZIL: IBOVESPA TO OPEN LOWER TRACKING FOREIGN MARKETS

Trading 11 juil 2018 Commentaire »

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BRAZIL: Annual Industrial Output Drops In 12 Of 15 Regions Surveyed In May

Trading 11 juil 2018 Commentaire »

The industrial output in Brazil fell in 12 out of 15 regions surveyed in May 2018 over the same month of the previous year, said the South American country's statistics office (IBGE). Over the previous month, the Brazilian industrial production dropped in 14 of 15 regions surveyed.

According to the IBGE, the generalized drop recorded reflects the truckers' strike that struck the country in May.

On a monthly basis, the strongest decline was recorded in Mato Grosso, -24.1%, followed by Parani (-18.4%), Bahia and Santa Catarina (both with -15.0%).


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