Monday, 29 February 2016

China cuts banks' reserve requirement ratio

China's central bank took further measures to cushion its economic slowdown amid the cheaper shares and the weakening currency by reducing the amount of cash the nation’s lenders must lock away.













Euro area annual inflation down to -0.2%

Euro area annual inflation returned to negative territory in February 2016, according to a flash estimate from Eurostat, published today.
Consumer prices decreased by 0.2% after rising 0.3% in January against the analysts’s expectations of  zero change.
Prices in the services sector are slowing the upward trend by 1% compared to 1.2% in January, Food, alcohol and tobacco products reported an increase of 0.7% compared to 1% the previous month, while non-energy industrial goods were up by 0.3% compared to 0.7% in January. Energy accelerated depreciation from 5.4% to 8%.

Today's report reinforces expectations that the European Central Bank will take aggressively increasing incentives at its next meeting, scheduled for March 10.


Sunday, 28 February 2016

Global GDP is expected to increase by 2030

Global GDP will continue to grow until 2030. However, the gap between richest and poorest economies will deepen. This is the estimate of the World Economic Forum. 

These graphics show the change in global GDP distribution between 1970 and 2030 looking at the United States, China and India.



 


LSE in merger talks with Deutsche Boerse

The first sure sign for forthcoming merger between London Stock Exchange Group Plc and Deutsche Boerse AG is that there is reached agreement on key posts after completion of the deal. According to an official release of the two exchange operators, the CEO of Deutsche Boerse Carsten Kengeter will remain the same position in the new dominant European exchange operator, while CEO of LSE Xavier Rolet will retire






Saturday, 27 February 2016

Metatrader4 web is now available

In the whirlwind of my life I couldn't fight the feeling that something is slipping away.
A feeling like the runaway train is never coming back and I’m on the wrong way on a one-way track.

Handling with my trading platform so far has been stuck inside my head like a favourite tune, but life is interesting outside as well, especially when you want to go the places you love the best.

I thought I knew all well but all time I could never tell that I left this feeling away.
But that was yesterday, now I hold the trading platform in my hands.
So goodbye yesterday, there is a slight change of my plans thanks to my online broker ActivTrades.

Finally 
MT4 platform is on the web and this is so amazing because you have quick and easy access from any devices and various operating systems, without installation and setup.
Finally you may focus on trading wherever you go and whatever you do.
Except aforementioned you may also enjoy with:
 
ü  Placing orders in a few clicks with a professional execution or use one click trading
ü  Unlimited charts and real time quotes. And this is in fact a great advantage because you may switch between one chart and multiple just by clicking  and thus you may see different time frames, different currencies and different instruments.
ü  Placing market orders and pending orders for long and short positions
ü  Having access to Microlot and Minilot trading
ü  Integrated trading statements



It seems now that I’m took to the paradise city where the trading is easy the life is pretty.

Take your passion and make it happen, pictures will come alive and you can trade right through your life! To know more, follow this link!

Wednesday, 24 February 2016

US and Europe stocks finished profoundly lower on Tuesday



Wall Street closed in negative territory on Tuesday, failing to prolong the rally from Monday as the sentiment was influenced by the global negative mood, the bad US data and the swinging oil prices.

Yesterday the US stocks recorded the biggest loss for a week amid the negative data on consumer confidence and depreciation of oil caused by the refusal of Saudi Arabia to cut production. Ultimately energy companies recorded a fall, dragging and banking sectors. S&P 500 closed with a decline of 1.25%  at 1,921.28 points, supported only by utility companies. Dow Jones wrote off 1.1% to end at 16,431.85 points, while Nasdaq Composite finished with a drop of 1.47% at 4,503.58 points.

A piece of major news is the slump of CB’s consumer confidence, which hinted deterioration in optimism at a level of 92.2 points in February and missed the forecast of 97.2 points.  Sales of existing homes rose by 0.4% to 5.47 million units in January, which is a stronger result having in mind the expected 2.5% drop to 5.32 million units.

Earlier in the day European stocks fell from a three-week peak, erasing most of Monday's gains. Stoxx Europe 600 fell 1.2%, while DAX 30 wrote off 1.6%. CAC 40 wiped 1.4 % FTSE 100 closed 1.3% lower.

Tuesday economic calendar in Europe offered only German data, starting with the fourth-quarter report on GDP. The German economy grew as expected and expanded 0.3% , same as the quarter before, while it increased 2.1% on a yearly and non-seasonally adjusted basis.

Meanwhile the IFO index increased to 112.9 points in February from the 112.5 in January, while the expectations reached 99.8 points, a worse figure compared to the 102.4 points a month ago
.

Tuesday, 23 February 2016

Asian markets ended the trade in red

Asia stocks lost momentum today and closed the trade in red.

Japan's benchmark Nikkei 225 initially rose by 1%  in early trade, but finished with 0.37% down, at 16,052.05. The broader Topix also erased gains and decreased by 0.68% to 1,291.17. South Korea's Kospi reported a decline of 0.11%  to 1,914.22, while the S&P/ASX 200 erased 0.43% and closed at 4,979.58 weighed by losses in the financial and the energy sectors, down respectively with 0.7% and 0.47%.
Chinese markets also lost the momentum from Monday. Shanghai Composite Index fell 0.79%, closing down 22.33 points to 2,903.95, while Shenzhen Composite lost 0.58% of its value, closing at 1,877.18.

Shares of energy companies were trading mixed. Australian Santos and Woodside Petroleum reported a decline in the price of respectively 1.18% and 0.11%. Japan’s Fuji Oil decline was 1.54%, while Inpex added 0.9 %.
Chinese energy companies ended trading mainly with a slump, the decline in the share price of China Oilfield is 1.2%.
The Australian giant BHP Billiton reported a net loss of 5.67 billion dollars for the first half of financial 2016 and reduced the interim dividends by 75% - from 62 to 16 cents per share, below the  expectations of 31 cents. However, shares of BHP Billiton ended the day with an increase of 2.62%.




Sunday, 21 February 2016

15 countries that depend on oil exports

Next week, Saudi Oil Minister Ali al-Naimi for the first time will face the victims of his decision not to reduce oil production despite the global glut. US shale oil producers are struggling to survive the worst price collapse for years. The idea of reducing output and losing a good market share to the newbie in the industry – US shale oil producers has a strong aversion to the traditional oil producers around the world.
Oil price today is as cheap as it has not been in the last 12 years. And this is more than bad news for countries whose economies depend mainly on the export of black gold.
Meanwhile have you ever thought about which countries rely most on oil exports?
An analysis of Bloomberg estimated which countries in 2018 will depend most of its oil reserves. Absolute leader in this ranking is Brunei, with oil exports projected to make up over 60 percent of GDP. This is going to be 15 % more than the second most reliant country, Kuwait and Libya, whose economies rely on almost 50 % of oil exports.




This chart shows estimated oil exports as a % of GDP in 2018.





Saturday, 20 February 2016

EUR/USD declined over the week


Compared to two weeks ago, last it proved to be less volatile. Except Friday the euro was slipping during the previous week and erased lots of the accumulated gains.

In terms of fundamental agenda there was lack of significant news, but however EUR/USD decreased from $1.1230 to $1.1135 and closed  the week 1.11% lower.

On Monday the euro weakened on Mario Draghi’s speech which in fact didn’t bring anything new. The European Central Bank will be ready to ease monetary policy further in March, having in mind the low oil prices, the global slowdown in growth and the risks from financial market volatility. However this event declined the euro with 50 pips it reached daily lows at $ 1.1120 – 1.1130.

Tuesday showed that the ZEW Indicator of Economic Sentiment for Germany dropped sharply to 1.0 in February 2016 from 10.2 in January but still is above expectations of 0. Meanwhile, the current situation dropped to 52.3 points from 59.7 in the previous month. The single currency was not affected by these news but continued with is downward movement.

Main news for Wednesday came with the U.S. housing starts for January, which unexpectedly dropped with 3.8%. The report of the Commerce Department showed a decrease to 1,099K from 1,143K previously. The building permits ticked fell to 1,202K from 1,204K in December, recoding a 0.2% monthly loss. For the housing market this could be a temporary setback, having in mind the bad weather in some parts of the country.

Positive mood was given by the PPI, which advanced 0.1% in January. We are witnessing an increase on a monthly basis to 0.1% in January from -0.2%, with the yearly change accelerating to -0.2% from -1.0% previously.

Furthermore CPI data on Friday showed an increase of  2.2%, which is the strongest pace of growth since June 2012 when CPI index is up 1.4 %. The inflation in USA in January has improved to 0.0%from -0.1% month-on-month, while the yearly change accelerated notably to 1.4% from 0.7% previously. The strengthening of inflationary pressures is largely due to higher costs for rents, 0.3%, and for medical services by 0.5%. With 0.5% more expensive and medicines sold on prescription. Americans paid 0.6% more for clothing and 0.3% - for new cars. Gasoline continues to become cheaper with new 4.8 percent, while food products account zero change.

 Amid the positive data EUR/USD dropped and failed to hold gains. The single currency  is going back above the  $1.11 and this somewhat presupposes possible further upward movement for the pair.

Thursday, 18 February 2016

The new flight of Air France-KLM


The shares of Air France-KLM SA rose with 9 % and thus is back to its first yearly net profit since 2008, mainly doe to the successful plans for spending cuts combined with cheaper fuel finally paid off.



Tuesday, 16 February 2016

2016 vs 2008


2016 did not start well for the global economy. The problems left by the collapse of the Chinese stock exchanges as negative wave quickly overtook and hit the European market.
In January, the billionaire George Soros said that he saw similarities between the situation today and that of the financial crisis in 2008.




Monday, 15 February 2016

Gold futures fell sharply



Gold futures fell sharply today amid increased interest in riskier assets after Japanese stocks jumped by 7% this morning.

The April contracts of yellow metal dropped by 2.3 % or $28.20 to $ 1211.10 per ounce, after last week recorded its biggest jump from December 2011 onwards as added 7.10 % to its value, which today caused extended  sales.

Gold was shining with a fourth weekly gain amid the crushing global equities, the collapse of  crude prices and the weaker dollar. The fate of the global economy has revived the safe-haven status of gold after years of being treated like the underdog on financial markets.

Last week gold deliveries for April raised with 7.03% and on Friday ended at $1,239.10 an ounce on New York's Comex. Last week they were seen at $1,1157.70 an ounce.


Sunday, 14 February 2016

U.S. import prices continued to trend down



Prices for U.S. imports continue their downward trend, having decreased by 1.1% in January, mainly due to the impact of cheaper oil. Even without it, however, the trend is negative for the eighth consecutive month, decreased by 0.2%.
The decline of price index for all imports fell 1.1% in January and this is the most significant monthly decrease since last August, when the index dropped with 1.8%. Even though the decline is more modest than analysts' expectations for 1.4%.
Both fuel and nonfuel prices continued to trend down. Compared to January 2015, prices of imported goods are down by 6.2 %.
Import fuel prices dropped with 12.4 % in January which is the largest 1-month drop since a 12.7- percent decline in August 2015. On a a monthly basis the import fuel prices didn’t rise on a monthly basis since a 1.5% advance in June 2015. The January drop was led by a 13.4-percent decline in petroleum prices, although natural gas prices also fell, decreasing 3.2 percent. The price index for import fuel declined 34.5 percent for the year ended in January, while over the same period petroleum prices fell 35.3 percent and natural gas prices decreased 40.1 percent.



U.S. export prices also fell in January,  declining by 0.8 percent compared to December and 5.7 % last year. Most significant is the decline in agricultural exports – the drop is of 12.7% from January 2015 to January 2016. 

Friday, 12 February 2016

How do you prepare for 2016

How do you do the trading that you do?
No one I know could ever keep up without fundamental analysis.
Did it ever make sense to you to stay apart of the driving factors in the major economies of the world?

So, how do you prepare for 2016?
This was discussed at the last ActivTrades webinar that was held yesterday and led by the professional trader Amit Shah.
The global themes that were pointed were oil prices, Cina and QE.
An overview of the main currencies was taken and it was hinted about their further development.


  

It was shown what are the main global themes driving today’s FX markets, what are the country specific factors that have led us to our current position and what is important for 2016  and finally what to focus on and how to prepare for the rest of the year.

1.      China China China
2.      Oil
3.      Global stock markets
4.      Listen to central bankers carefully
5.      Be consistent
6.      Follow your trading plan
7.      Stay disciplined.

The present has no ribbon, but your gift keeps on giving here!


Thursday, 11 February 2016

Oil prices back below $30


Oil prices dropped during the today’s session. WTI fell below the $27 level as the recent crude oil stockpile report revived fears about the huge supply glut. Futures for WTI plunged 4.30% to $26.27 per barrel, while Brent futures slided with 2.17% to $30.17 per barrel.

The Energy InformationAdministration (EIA) said on Wednesday that total crude stockpiles in the US slipped unexpectedly by 754,000 barrels over the week to February 5, compared to forecasts of a rise of about 3.13 million barrels.However, crude reserves at the Cushing, Oklahoma delivery hub increased to an all-time high of nearly 65 million barrels.The report also showed that gasoline inventories jumped by 1.26 million barrels over the measured week, much more than the rise of 243,000 barrels expected by analysts.Moreover, distillate stockpiles climbed by 1.28 million barrels, compared to afall of 1.58 million barrels expected by the market.On Wednesday, OPEC said in its latest monthly report it pumped 32.33 million barrels per day (bpd) of crude during January, up from the32.20 million bpd seen in December.The cartel expects world oil demand to grow by 1.25 million bpd to94.21 million bpd this year, only a small downward adjustment from the previous forecast. Non-OPEC oil supply is projected to decline by 0.70 million bpd to average 56.28 million bpd.The International Energy Agency(IEA) said earlier this week that oil prices may fall further this year as the global oil surplus is likely to worsen thanks to increased output from Iran. The country produced 2.99 million bpd in January, a rise of about 80,000bpd from prior levels.Iran's Oil Minister Bijan Zangeneh said his country is open to begin talks with other OPEC members as conditions in the oil market continue to decline.The EIA cut its price forecast for WTI to $37.59 per barrel for this year,compared to the $38.54 projected a month ago. The price for Brent should average $37.52 a barrel this year, down from the previously expected $40.15 a barrel.

Tuesday, 9 February 2016

Precious metals on focus


The continuing risk-off mood of investors helped gold to continue its upward movement that began in January. The yellow metal managed to reach the level of $ 1,200 for the first time since June 2015. Gold gained 12 percent since the beginning of 2016 due to uncertainty about the rise in interest rates by the Federal Reserve.
The precious metal was trading 0.43% lower at $1,192.70 an ounce early on Tuesday, after reaching a high of $1,201.10 an ounce yesterday evening, a level last seen on June 22, 2015.
Silver followed gold on the way up and managed to rise by 2.5%. The noble metal successfully overcame the 200-day moving average and reached $ 15.09 an ounce. The next target is the area around $ 16.
Platinum followed the positive trend of precious metals and rose with 1.8 %. The metal broke the 100-day MA at 897.65. The next target is the 200-day moving average and the level around $ 970.80.

Monday, 8 February 2016

Greek Bank Tragedy

Greek stocks headed to their worst session since 1990 as most badly performed the bank sector. The benchmark index Athens Stock Exchange (ASE) declined by 7.18% at 14:40 GMT, shares of Eurobank Ergasias, Piraeus Bank and National Bank of Greece fell by more than 21%.
Greek stocks once again became the worst performers among a total of 93 global equity indexes.
So far this year Athens ASE stock index erased more than 25%, which is nearly two times bigger decline than in the pan-European Stoxx Europe 600.



Sunday, 7 February 2016

EUR/USD


It was a very volatile week and we saw euro bulls return.
Next week EUR/USD most probably will experience bigger movements as the uncertainty about the future steps of both the ECB and Fed remains in place.
The euro returned back to the bullish trend, although further gains will be harder to achieve as ECB should „do something” at its March meeting. This should limit the upside potential on the pair.

Thursday, 4 February 2016

Daimler hit a record profit for 2015


The German auto giant Daimler reported new levels of sales and earnings in 2015. The earnings before interest and taxes (EBIT) of the Mercedes manufacturer has increased in 2015 over the previous year whit whole 36 % and reached 13.8 billion euros.
The company announced today that sales rose 15 % reaching 149.5 billion euros.


Wednesday, 3 February 2016

Exxon Mobil Q4 profit tumbled 58%


US oil giant Exxon Mobil reported a 58% drop in profit for the fourth quarter of last year.
The largest publicly traded oil company in the world announced that it will cut costs by a quarter this year, amid the collapse in oil prices.
Exxon Mobil recorded a net profit of $ 2.78 billion last quarter, compared to $ 6.57 billion a year earlier.
As a result of the 70% decline in oil prices of $ 100 a barrel in 2014 to around $ 30 now many energy companies cut their investments. 

The company posted fourth quarter earnings of 67 cents a share, compared with $1.32 a share in the year-earlier period.