U.S. Factory Orders Pull Back Slightly Less Than Expected In November

Trading 07 jan 2020 Commentaire »

A report released by the Commerce Department on Tuesday showed a pullback in new orders for U.S. manufactured goods in the month of November.

The Commerce Department said factory orders fell by 0.7 percent in November after inching up by a downwardly revised 0.2 percent in October.

Economists had expected orders to drop by 0.8 percent compared to the 0.3 percent increase originally reported for the previous month.

The report said durable goods orders tumbled by 2.1 percent in November after edging up by 0.2 percent in October, reflecting a modest revision from the previously reported 2.0 percent slump.

The nosedive in durable goods orders was partly offset by a continued increase in orders for non-durable goods, which climbed by 0.6 percent in November after rising by 0.3 percent in October.

The Commerce Department said shipments of manufactured goods rose by 0.3 percent in November following a 0.1 percent uptick in October. Inventories also increased by 0.3 percent.

Subsequently, the Commerce Department said the inventories-to-shipments ratio in November was unchanged from the previous month at 1.40.


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U.S. Service Sector Growth Accelerates More Than Expected In December

Trading 07 jan 2020 Commentaire »

Service sector activity in the U.S. grew at a faster than expected pace in the month of December, the Institute for Supply Management revealed in a report on Tuesday.

The ISM said its non-manufacturing index climbed to 55.0 in December after dipping to 53.9 in November, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 54.5.

"The non-manufacturing sector had an uptick in growth in December," said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.

"The respondents are positive about the potential resolution on tariffs," he added. "Capacity constraints have eased a bit; however, respondents continue to have difficulty with labor resources."

The bigger than expected rebound by the headline index reflected a substantial acceleration in the pace of growth in business activity, with the business activity index spiking to 57.2 in December from 51.6 in November.

On the other hand, the report said the new orders index slid to 54.9 in December from 57.1 in November, indicating a slowdown in the pace of growth in new orders.

The employment index also edged down to 55.2 in December from 55.5 in November, suggesting the pace of job growth in the service sector slowed slightly during the month.

Meanwhile, the prices index came in unchanged from the previous month at 58.5, pointing to the 31st consecutive month of price growth.

The ISM released a separate report last Friday showing U.S. manufacturing activity unexpectedly contracted at a faster rate in the month of December.

The purchasing managers index slid to 47.2 in December from 48.1 in November, with a reading below 50 indicating a contraction in manufacturing activity.

The modest decrease came as a surprise to economists, who had expected the manufacturing index to inch up to 49.0.

With the unexpected drop, the index pointed to the fastest rate of contraction in manufacturing activity since June of 2009.


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*U.S. Factory Orders Drop 0.7% In November

Trading 07 jan 2020 Commentaire »

U.S. Factory Orders Drop 0.7% In November


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*ISM U.S. Non-Manufacturing Index Rises To 55.0 In December

Trading 07 jan 2020 Commentaire »

ISM U.S. Non-Manufacturing Index Rises To 55.0 In December


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Crude Oil Futures Extend Gains To 3rd Straight Session

Trading 07 jan 2020 Commentaire »

Crude oil prices moved higher on Monday amid concerns about possible supply disruptions due to an escalation in tensions in the Middle East.

Recent data showing a significant drop in U.S. crude inventories and easing worries about the outlook for energy demand after the U.S. and China agreed in principle on a phase one trade deal contributed as well to oil's rise.

West Texas Intermediate crude oil futures for February ended up $0.22, or about 0.4%, at $63.27 a barrel, the highest closing value in seven months.

Brent Crude oil futures moved past the $70 mark and hit a high of $70.75 a barrel before paring gains. The contract was last seen traded at $68.78 a barrel, gaining $0.18, or about 0.25%.

On Friday, WTI crude oil futures for February ended up $1.87, or 3.1%, at $63.05 a barrel.

According to reports, the U.S. State Department has warned of a "heightened risk" of missile attacks near military bases and energy facilities in Saudi Arabia.

U.S. President Donald Trump issued a threat to impose sanctions on Iraq and retaliate against Iran if it strikes back after the killing of its top commander.

The threat against Iraq, the second largest producer among the OPEC, comes after its parliament voted in favor of a resolution calling for an end to the foreign military presence in the country, including the estimated 5,200 U.S. troops stationed to help fight Islamic State extremists.

Iran announced Sunday it would no longer abide by the limits contained in the 2015 nuclear deal while reports from Baghdad say the U.S. embassy compound there was targeted in an attack on Sunday evening.

Traders also took note of reports that all the four oil export terminals in eastern Libya were forced to shut on Sunday due to bad weather and that the closure could last three days.


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U.S. Trade Deficit Narrows To Smallest In Three Years

Trading 07 jan 2020 Commentaire »

With exports rising and imports falling, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed significantly in the month of November.

The report said the trade deficit narrowed to $43.1 billion in November from a revised $46.9 billion in October. The trade deficit shrank to its smallest since hitting $42.0 billion in October 2016.

Economists had expected the deficit to narrow to $43.8 billion from the $47.2 billion originally reported for the previous month.

The narrower trade deficit came as the value of exports climbed by 0.7 percent to $208.6 billion in November after edging down by 0.1 percent to $207.3 billion in October.

Exports of drilling and oilfield equipment, civilian aircraft engines, jewelry and automotive vehicles and parts showed notable increases.

Meanwhile, the report said the value of imports slumped by 1.0 percent to $251.7 billion in November after tumbling by 1.7 percent to $258.7 billion in October.

Steep drops in imports of civilian aircraft, computers and cell phones and other household goods more than offset a jump in imports of automotive vehicles and parts.

The Commerce Department noted the narrower trade deficit also came as the goods deficit shrank to $63.9 billion in November from $67.8 billion in October. The services surplus was little changed at $20.8 billion.

Andrew Hunter, Senior U.S. Economist at Capital Economics, said the recent drop in imports can partly be explained by temporary factors but noted the data suggests real imports contracted by close to 10 percent annualized in the fourth quarter, with exports little changed.

"That would see net trade adding almost 2.0%-pts to annualized GDP growth, although that boost looks to have been almost entirely offset by a big drag from inventories," Hunter said.

"With imports likely to rebound soon, that boost won't be repeated," he added. "But the stabilization in global manufacturing activity, and the trade truce with China, suggest that the drag on the U.S. economy from weak growth overseas has now run its course."


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India Forecasts Slower Growth For 2019-20

Trading 07 jan 2020 Commentaire »

The Indian government released its advance economic growth estimate for the fiscal year ending in March, on Tuesday, that showed the pace of expansion slowing sharply.

Gross domestic product growth is set to come in at 5.0 percent in the 2019-20 fiscal year versus 6.8 percent in the 2018-19 period.

In December, the Reserve Bank of India had sharply lowered its real GDP growth outlook for 2019-20 to 5 percent from 6.1 percent, citing a delay in revival of domestic demand, a further slowdown in global economic activity and geo-political tensions as downside risks.

The International Monetary Fund currently forecasts India's growth at 6.1 percent for the current fiscal and 7 percent for 2020-21.

The IMF Chief Economist Gita Gopinath has said that the country's growth forecasts are likely to see significant downward revision in the January update of the World Economic Outlook.


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Loonie Little Changed After Canada Trade Data

Trading 07 jan 2020 Commentaire »

Statistics Canada has released Canada trade data for November at 8:30 am ET Tuesday. The loonie changed little against its major counterparts after the data.

The loonie was trading at 83.50 against the yen, 0.8928 against the aussie, 1.4508 against the euro and 1.2990 against the greenback around 8:33 am ET.


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U.S. Trade Deficit Narrows More Than Expected In November

Trading 07 jan 2020 Commentaire »

With exports rising and imports falling, the Commerce Department released a report on Tuesday showing the U.S. trade deficit narrowed significantly in the month of November.

The report said the trade deficit narrowed to $43.1 billion in November from a revised $46.9 billion in October. Economists had expected the deficit to narrow to $43.8 billion from the $47.2 billion originally reported for the previous month.

The narrower trade deficit came as the value of exports climbed by 0.7 percent to $208.6 billion, while the value of imports slumped by 1.0 percent to $251.7 billion.


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Dollar Little Changed Following U.S. Trade Data

Trading 07 jan 2020 Commentaire »

After the release of the U.S. trade data for November at 8:30 am ET Tuesday, the greenback changed little against its major counterparts.

The greenback was trading at 108.46 against the yen, 0.9712 against the franc, 1.1169 against the euro and 1.311 against the pound around 8:35 am ET.


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