*New Zealand Food Prices SA -0.2% On Month In November; Unadjusted, -0.6%

Trading 12 déc 2018 Commentaire »

New Zealand Food Prices SA -0.2% On Month In November; Unadjusted, -0.6%


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*New Zealand Food Prices +0.4% On Year In November

Trading 12 déc 2018 Commentaire »

New Zealand Food Prices +0.4% On Year In November


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New Zealand Food Price Data Due On Thursday

Trading 12 déc 2018 Commentaire »

New Zealand will on Thursday release November numbers for food prices, highlighting a light day for Asia-Pacific economic activity. In October, food prices were up 0.3 percent on month and 0.6 percent on year.

Australia will see December results for its consumer price forecast; in November, inflation was expected to climb 3.6 percent on year.

Japan will provide November figures for office vacancies in Tokyo; in October, vacancies were up 2.2 percent.

The central bank in the Philippines will wrap up its monetary policy meeting and then announce its decision on interest rates; the central bank is widely expected to keep its benchmark lending rate unchanged at 4.75 percent.


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Oil Futures Pare Early Gains, Settle Lower

Trading 12 déc 2018 Commentaire »

Crude oil futures failed to hold early gains and settled lower on Wednesday, despite a report from the Energy Information Administration showing a less than expected drop in U.S. crude inventories in the week ended December 7.

An unexpected cut in oil supply from Libya and the drop in U.S. crude stockpiles lifted crude oil futures up sharply earlier in the session.

However, prices retreated towards the closing minutes due to demand growth concerns and oil futures eventually ended the session on a negative note.

Crude oil futures for January delivery ended down $0.50, or 1%, at 51.15 a barrel, well off the session's high of 52.84 a barrel.

On Tuesday, crude oil futures for January ended up $0.65, or 1.3%, at $51.65 a barrel.

According to EIA data, crude oil stockpiles in the U.S. dropped by about 1.21 million barrels last week, almost three times lower than the expected level.

In the previous week, crude stockpiles fell by 7.32 million barrels, dropping for the fist time in eleven weeks.

The EIA report showed gasoline inventories were up by 2.09 million barrels last week, higher than an expected increase of about 2.5 million barrels. Meanwhile, distillate stockpiles were down by 1.48 million barrels.

On Tuesday, the American Petroleum Institute released its weekly oil report, which said crude inventories in the U.S. fell by 10.2 million barrels last week.

Earlier this week, the EIA reduced its oil-price forecasts for this year and next, following the recent price declines that came ahead of Friday's decision by the Organization of the Petroleum Exporting Countries and some non-member allies to cut production starting in January.

Meanwhile, OPEC is of the view that crude prices may find it tough to rebound. It has lowered demand expectations for its crude in 2019 to 31.44 million barrels per day, 100,000 less than earlier prediction, due to increased supply by non-OPEC oil producers and economic slowdown.


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Treasuries Extend Pullback Amid Renewed Optimism About U.S.-China Trade Deal

Trading 12 déc 2018 Commentaire »

Extending the pullback seen over the course of the previous session, treasuries showed a modest move to the downside during trading on Wednesday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 2.906 percent.

With the continued increase on the day, the ten-year yield climbed further off the more than three-month closing low set last Friday.

Reflecting recent waffling between hopeful and skeptical about a trade deal between with the U.S. and China, traders once again moved toward the more optimistic camp.

The shift came after President Donald Trump expressed optimism about striking a trade deal with Chinese President Xi Jinping in an interview with Reuters on Tuesday.

Trump noted that trade talks between U.S. and Chinese officials were underway by telephone and suggested more meetings are likely.

"We'll probably have another meeting. And maybe a meeting of the top people on both sides," Trump said. "If it's necessary, I'll have another meeting with President Xi, who I like a lot and get along with very well."

Trump also indicated he would be willing to intervene with the Justice Department in the case against Huawei Chief Financial Officer Meng Wanzhou if it would help secure a trade deal with China.

"If I think it's good for the country, if I think it's good for what will be certainly the largest trade deal ever made - which is a very important thing - what's good for national security - I would certainly intervene if I thought it was necessary," Trump said.

Treasuries saw continued weakness following the release of the results of the Treasury Department's auction of $24 billion worth of ten-year notes, which attracted below average demand.

The ten-year note auction drew a high yield of 2.915 percent and a bid-to-cover ratio of 2.35, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.57.

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

On the U.S. economic front, the Labor Department released a report showing consumer prices came in flat in the month of November, with a sharp pullback in gasoline prices offsetting increases in other prices.

The Labor Department said its consumer price index was unchanged in November after rising by 0.3 percent in October. The unchanged reading matched economist estimates.

Excluding food and energy prices, core consumer prices edged up by 0.2 percent in November, matching the uptick seen in October as well as expectations.

Developments regarding the U.S.-China trade talks may impact trading on Thursday along with reports on weekly jobless claims and import and export prices.

The Treasury is also due to finish off this week's long-term securities auctions with the sale of $16 billion worth of thirty-year bonds.


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Gold Futures Settle Higher As Dollar Softens

Trading 12 déc 2018 Commentaire »

After edging lower in the previous two sessions, gold futures ended on a positive note on Wednesday as the dollar retreated against most major currencies and data from the U.S. Labor Department showed inflation remained unchanged in November.

Amid expectations that the Federal Reserve will likely pause interest rate hikes sometime next year, the dollar has been a bit sluggish at times over the past few days. The dollar index declined by about 0.4% today.

Gold futures for February ended up $2.80, or 0.2%, at $1,250.00 an ounce.

On Tuesday, gold futures settled at $1,247.20 an ounce, down $2.20, or 0.2%, for the session.

Silver futures for March settled at $14.851 an ounce, up $0.223 from previous close of $14.628 an ounce.

Copper futures for March ended at $2.770 per pound, up slightly from previous close of $2.767 per pound.

The consumer prices data from the Labor Department indicate the Fed may take a less aggressive path with regard to rate hikes in the coming year. The report showed consumer prices came in flat in the month of November, with a sharp pullback in gasoline prices offsetting increases in other prices.

The Labor Department said its consumer price index was unchanged in November after rising by 0.3% in October. The unchanged reading matched economist estimates.

Excluding food and energy prices, core consumer prices edged up by 0.2% in November, matching the uptick seen in October as well as expectations.


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Dollar Falls Against Pound Ahead Of No-Confidence Vote

Trading 12 déc 2018 Commentaire »

The dollar is losing ground against all of its major rivals Wednesday afternoon, but the losses are most pronounced against the British pound. U.K. Prime Minister Theresa May asserted that she would battle the no confidence vote on her leadership, scheduled to be held at the House of Commons this evening. Ahead of the vote, the majority of lawmakers have voiced their support for May.

Meanwhile, President Donald Trump expressed optimism about striking a trade deal with Chinese President Xi Jinping in an interview with Reuters on Tuesday.

Trump noted that trade talks between U.S. and Chinese officials were underway by telephone and suggested more meetings are likely.

"We'll probably have another meeting. And maybe a meeting of the top people on both sides," Trump said. "If it's necessary, I'll have another meeting with President Xi, who I like a lot and get along with very well."

Trump also indicated he would be willing to intervene with the Justice Department in the case against Huawei Chief Financial Officer Meng Wanzhou if it would help secure a trade deal with China.

The buck has dropped to around $1.2625 against the pound sterling Wednesday afternoon, from an early high of $1.2476.

With a sharp pullback in gasoline prices offsetting increases in other prices, the Labor Department released a report on Wednesday showing consumer prices came in flat in the month of November. The Labor Department said its consumer price index was unchanged in November after rising by 0.3 percent in October. The unchanged reading matched economist estimates.

The dollar slipped to around $1.1365 against the Euro Wednesday afternoon, from an early high of $1.1315.

Eurozone's industrial production grew in October after a slump in the previous month, suggesting that economic growth may gain some steam towards the end of the year, yet remain sluggish.

Industrial production rose 0.2 percent from September, when it declined 0.6 percent, which was revised from 0.3 percent, figures from Eurostat showed on Wednesday. The growth was in line with economists' expectations.

The greenback reached a high of Y113.519 against the Japanese Yen Wednesday morning, but has since retreated to around Y113.230.

Producer prices in Japan were down 0.3 percent on month in November, the Bank of Japan said on Wednesday. That missed expectations for a decline of 0.1 percent following the 0.4 percent increase in October.

Core machine orders in Japan were up 7.6 percent on month in October, the Cabinet Office said on Wednesday, worth 863.2 billion yen. That was shy of expectations for an increase of 9.7 percent following the 18.3 percent plunge in September.


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Ten-Year Note Auction Attracts Below Average Demand

Trading 12 déc 2018 Commentaire »

On the heels of yesterday's auction of $38 billion worth of three-year notes, the Treasury Department sold $24 billion worth of ten-year notes on Wednesday, attracting below average demand.

The ten-year note auction drew a high yield of 2.915 percent and a bid-to-cover ratio of 2.35.

The Treasury sold $27 billion worth of ten-year notes last month, drawing a high yield of 3.209 percent and a bid-to-cover ratio of 2.54 percent.

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

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.57.

On Thursday, the Treasury is due to finish off this week's long-term securities auctions with the sale of $16 billion worth of thirty-year bonds.


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*U.S. Crude Oil Inventories Drop 1.2 Million Barrels In Week Ended 12/7

Trading 12 déc 2018 Commentaire »

U.S. Crude Oil Inventories Drop 1.2 Million Barrels In Week Ended 12/7


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*Pound Rallies As Majority Of Lawmakers Support PM Theresa May

Trading 12 déc 2018 Commentaire »

Pound Rallies As Majority Of Lawmakers Support PM Theresa May


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