Currency and private employment

Currency and private employment
Октябрь 6, 2016

Thursday: currency and private employment

On Tuesday Australian dollar fell 0.56 percent down in comparison to U.S. dollar. Stated rating 0.7580 is the lowest position of currency since September 21. Wednesday report of Institute of Supply Management about non-manufacturing purchasing manager index rising is likely the reason why USD remains supported. According to the report, mentioned index increased to 57.1 from 51.4 and reached the highest rating in the 11-month period, despite the analysts forecasting rating 53.0.
New Zealand dollar rating in NZD/USD pair fell to 0.7158 (by 21 percent). U.S. dollar strength index went up to 96.77 and rose by 0.15 percent. The early Thursday rating was at 96.25.
ADP payroll processing company informed that non-farm private employment rating had less accelerated growth as was predicted. Factual growth appeared to be 154,000 with forecasts on 166,000. This information is vital to market participants since Friday U.S. non-farm payrolls report on the job market strength. However, they are looking up to the next report on Friday to make a decision on a December rates.

Commodities: oil and gold

NYMEX crude delivery price for November fell to $49.43 a barrel shedding 0.8 percent by 08:05 GMT after its Wednesday growth by 2.34 percent. U.S. Energy Information Administration report indicated that crude oil inventories went down by 3.0 million barrels during the last week period to the 499.7 million amount. Such data make the daily traded oil in New-York go up to a yesterday maximum of $49.97.
ICE Futures Exchange in London showed Brent oil fell by 0.79% reaching a price $51.45 a barrel. On the other hand, contract price on Wednesday went up to $52.09.
As Comex division of NYMEX indicated by 07:10GMT, delivery price on gold for December, fell to $1,267.40 a troy ounce. The contract price also moved down on Wednesday to $1,264.10, reaching a level equivalent to June 24 rating. The dollar strengthening, mentioned earlier, usually makes the dollar-priced commodities more appealing and as a result makes them more expensive.

European trade indexes

Morning trade in Europe made the EURO STOXX 50 up by 0.39%, while France’s CAC 40 went increase by 0.30% and Germany’s DAX 30 advanced by 0.36%.
The financial stocks ratings also had their growth: Germany’s Commerzbank (DE: CBKG) by 1.26%, and Deutsche Bank (DE: DBKGn) by 1.79%. However, French BNP Paribas (PA: BNPP) rallied 1.44%, and Societe Generale (PA: SOGN) surged 2.38%.
Spanish BBVA (MC: BBVA) rose by 1.83%, and Banco Santander (MC: SAN) had increased by 1.75%, while Unicredit (MI: CRDI) had a surge by 3.25%, as well as Intesa Sanpaolo (MI: ISP) (by 1.81%).
Shares of Volkswagen (DE: VOWG_p) AG made their growth by 0.33%, despite the Reuters report about the company’s dealers problems about diesel-powered cars operations. Deutsche Telekom (DE: DTEGn) shares went down by 1.05%.
London FTSE 100 dropped by 0.07%, because of EasyJet (LON: EZJ) shares fell by 7.43%. This airline company earlier informed the press that pound fell would bring the £90 million loss to the company in the current financial year. Analyst of Deutsche Bank decreased rating of Smith & Nephew (LON: SN) to “hold” and that made its shares to went down by 2.21%.
Commodity-heavy index characterized by the loss as mining companies’ stocks went down: Glencore (LON: GLEN) by 0.16% and BHP Billiton (LON: BLT) by 0.29%. Rio Tinto (LON: RIO) had a decline in 0.59% Anglo American (LON: AAL) shares fell by 0.49%.
On the other hand, the U.K. companies had slight rise comparing with European mining industry. Lloyds Banking (LON: LLOY) shares have increased by 1.01 %, HSBC Holdings (LON: HSBA) had its increase by 0.38%, Barclays (LON: BARC) shares went up by 1.15%, while the Royal Bank of Scotland (LON: RBS) rose by 2.86%.
Futures indicators showed some gains. The Dow Jones Industrial Average futures went up by 0.09%; S&P 500 indicated the 0.07% growth, and Nasdaq 100 had a 0.10% increase.
Japan financial official stated on Tuesday that Bank of Japan has no possibility to run out of government bonds for its program of quantitative easing. As BOJ Governor reported to the upper house budget committee, the bank had a direct restriction on governmental debt underwriting. BOJ now conducts all debts purchases of government on the secondary market field.

High-tech news

Samsung Electronics (KS:005930) Co later started a global recall process for its flagship product, but now a replaced Samsung Note 7 could cause further reputation hurt for the company and lead to new investigations.
Inside a plane of U.S. company Southwest Airlines Co one of the globally replaced Samsung smartphones started to cause smoke. Consumer stated that he returned the phone two weeks ago after taking the Samsung information about a global replacement and had a new one.
Now, the U.S. Consumer Product Safety Commission (CPSC), Federal Aviation Administration (FAA), Samsung Corporation and the smartphone owner try to gather facts and investigate the accident.