Market news

Investing.com – According to the updated report released on Tuesday, in the first quarter of 2018, economic growth in the euro area slowed slightly. This strengthens the forecasts that the European Central Bank will not curtail the financial incentive program in the near future.

According to Eurostat’s report, in the first quarter the European economy grew by 2.5% on an annualized basis, which corresponds to a preliminary estimate of growth. In the fourth quarter of 2017, on an annualized basis, the euro zone economy grew by 2.7%.

Compared to the previous quarter, Europe’s economy grew by 0.4%.

The report released yesterday showed that as a result of the decline in sales volumes, Germany’s economic growth slowed in the first quarter.

In the first quarter of 2018, the euro zone’s largest economy grew by only 0.3%.

During his press conference after the last meeting of the European Central Bank, President Mario Draghi acknowledged that economic growth in the eurozone slowed compared to the beginning of the year. At the same time, he pointed out that the monetary policy will not change in the near future.

Draghi added that his overall assessment expresses restrained fears amidst a stable belief that inflation is approaching the ECB target just below 2%.

Many analysts believe that the ECB will wait until July (which is a month longer than previous forecasts), before making new forecasts about plans to wind down its financial incentive program.

Another report showed that in March, industrial production in the euro area, on an annualized basis, increased by 3.0%, and compared to the previous month by 0.5%, which was lower than the forecasts of analysts.

Investing.com – According to the published report of the National Statistical Office of Great Britain (ONS) three months before April, the unemployment rate in the UK remained stable, and wage growth slightly accelerated.

The number of employed people in the UK economy grew to 197 thousand three months before April, compared with the previous growth rate of 129 thousand.

The number of applications for unemployment assistance rose to 31.2 thousand, compared with the value of 15.7 thousand.

The unemployment rate remains at a minimum level of 4.2% in 42 years, which is in line with the forecasts.

The average salary level for the three months to March, excluding premiums compared to last year, increased by 2.9% against the previous value of 2.8%.

The growth of salaries exceeded the level of inflation, which in March fell to 2.5%.

The average wage level (including bonuses) in the UK increased by 2.6% compared to the previous growth of 2.8%.

Bloomberg.com — Stocks in Asia declined Tuesday, while the dollar strengthened and 10-year Treasury yields rose back above the 3 percent mark as investors assessed the outlook for global trade relations and increased tensions in the Middle East.

Equity benchmarks dropped in Hong Kong, Korea and Australia, and were little changed in Japan. Chinese stocks fluctuated after a slew of data showed economic momentum broadly held up. FTSE 100 futures pointed to a lower open as U.S. contracts fell. Treasury yields climbed above 3 percent after dipping below that level earlier and the dollar extended gains against a basket of its Group of 10 peers.

Investor focus returned to trade ahead of a meeting in Washington between U.S. and Chinese officials this week. While President Donald Trump’s move to get China’s beleaguered ZTE Corp. back on its feet provided a sign that he may be open to easing trade tensions, the messages from his administration appear to be mixed. Commerce Secretary Wilbur Ross said the U.S. is exploring alternatives to punish ZTE for breaking sanctions law separately from trade negotiations, a comment that later appeared to be contradicted by Trump.

Elsewhere, oil recovered to around $71 a barrel on reduced supply. The Turkish lira hit its day’s low after President Recep Tayyip Erdogan said he intends to tighten his grip on the economy and take more responsibility for monetary policy if he wins an election next month.

Investing.com – The Australian stock market finished Tuesday’s trading with a fall against the backdrop of negative dynamics from the telecommunications, utilities and gold mining sectors.

At the close of the Sydney Stock Exchange, the S&P/ASX 200 declined by 0.50%.

As the leaders of growth among the components of the S & P / ASX 200 index, following the results of today’s trading, shares of Link Administration Holdings Ltd (AX:LNK), which rose by 0.370 points (5.45%), closed at 7.160. Quotes of Sandfire Resources NL (AX:SFR) increased by 0.400 p. (4.85%), completing trades at the level of 8.650. Paper Blackmores Ltd (AX:BKL) rose in price by 6.07 p. (4.84%), closing at 131.52.

The leaders of the fall were shares of Automotive Group Holdings Ltd (AX:AHG), whose price fell by 0.305 points (8.97%), finishing the session at around 3.095. Shares of Seven West Media Ltd (AX:SWM) climbed 0.060 points (8.00%)closing at 0.690, while Telstra Corp Ltd (AX:TLS) declined by 0.180 pence (5.88%) and completed the trades at around 2,880.

On the Sydney Stock Exchange, the number of depreciated securities (686) exceeded the number of those that closed in positive territory (528), while the quotes of 397 shares remained unchanged.

Share prices of Sandfire Resources NL (AX:SFR) rose to a maximum, rising by 4.85%, 0.400 points, and completed trading at around 8.650. Share prices of Telstra Corp Ltd (AX:TLS) fell to a minimum, having fallen in price by 5.88%, 0.180 p., and finished trading at around 2.880.

The S&P/ASX 200 VIX volatility index, which is formed on the basis of trading options on the S&P/ASX 200, rose 7.21% to 11.597.

Futures on gold futures for June delivery lost 0.49%, or 6.40, reaching $ 1.311.80 per troy ounce. As for other products, the price of WTI futures for delivery in June fell by 0.06%, or 0.04, to $ 70.92 per barrel. Futures on futures for Brent crude for delivery in July fell 0.01%, or 0.01, to $ 78.22 a barrel.

Meanwhile, in the Forex market, the AUD/USD fell by 0.23% to 0.7510, while AUD/JPY fell by 0.05% to  82.51.

Futures on the USD index rose by 0.09% to 92.63.

Investing.com – Yesterday, oil prices, declined at the beginning of trading, moved to growth in the afternoon after the Organization of Petroleum Exporting Countries (OPEC) in its monthly report announced its readiness to support the stability of the oil market.

The price of black gold has updated on Monday local highs since November 2014 on fears of traders regarding cutting supply to the world market as a result of renewed sanctions against Iran.

Following the trades on May 14, the value of the July contract for Brent crude on the ICE Futures exchange in London increased by $ 1.11 (1.44%) to $ 78.23 per barrel.

June futures on WTI on the New York Mercantile Exchange NYMEX went up by $ 0.26 (0.37%) to $ 70.96 per barrel.

Today, oil prices continue to rise slightly.

June futures for Brent crude oil till 7:58 Moscow time grew by 6 cents (0.08%) – to $ 78.29 per barrel.

Quotes of the June WTI oil contract added 2 cents (0.03%) to $ 70.98 per barrel.

(Reuters) – The European Central Bank may give a new forecast of the timing of the first rate increase with the approach of the date when a large-scale asset purchase program will be completed, François Villeroy de Galo, an official of the ECB and the head of the Bank of France, said on Monday.

Will the decision to complete the purchase of assets taken at the September or December meeting of the ECB does not play a big role, said Villeroy de Galo.

As we approach this decision, the ECB will adjust its forecast for interest rates, the official said. The regulator’s statement on the results of the April meeting says that rates will remain at current levels for a long period of time, much longer than the horizon of buying up assets.

“As for the first rate increase, we can give an additional forecast on its timing,” much longer “- it’s at least several quarters, but not years, (and we can also give) additional guidance on its dependence on the inflation forecast,” – said Villeroy de Galo.

Take-profit.org – The Fed may be forced to raise rates to a limiting mark in order to achieve the goal of stable inflation and low unemployment, says FRB President Cleveland Loretta Mester.

The median forecast assumes that this long-term or neutral level of the federal funds rate is 3%.

Mester is a voting member of the Committee on open market operations this year, and argues that the rate will rise above 3% by 2020.

“Undoubtedly, until 2020, it is still far away, and the course of monetary policy will depend on a change in prospects,” she said, adding that inflation is unlikely to rise sharply, which will allow the Fed to raise rates gradually.

In March, China reduced oil production by 2.2% compared to the same month last year – up to 15.96 million tons, the State Statistic Department reported.
The volume of oil refining increased by 8.3% and amounted to 51.51 million tons.

The extraction of natural gas grew by 0.4%, reaching 13.5 billion cubic meters, while imports jumped 38% to 8.23 billion cubic meters.

China plans to increase annual oil production to 200 million tons by 2020, and gas to 360 billion cubic meters.

LONDON, May 14 (Reuters) – European stock indices declined at the beginning of trading on Monday after substantial growth in the last few weeks, although news of mergers and acquisitions (M & A) triggered a revival in stock markets, pushing up shares of the British IWG and the Portuguese EDP.

The papers of oil companies were the leaders of the fall due to the decline in oil prices, which receded from long-term highs with the growth of drilling activity in the US, and against the signs of resistance of Europe and Asia to the US sanctions against Iran.

The index of oil and gas sector STOXX 600 to 11.00 MSC fell by 0.4 percent, while the pan-European index lost 0.1 percent.

IWG shares jumped 20 percent after the British company, which provides office rental services, said it received offers to take over from three competing companies.

The price of EDP securities rose by 10 percent, as China’s state-owned energy company China Three Gorges offered to buy shares worth $ 10.8 billion, hoping to bring its stake in the Portuguese company to the control.

Papers of the Netherlands bank ABN Amro, reporting on the decrease in net profit in the first quarter, fell by 4.8 percent.

(Helen Reed, translated by Vera Sosenkova, editor Anton Kolodyazhny)