Company News by ForexMart

[Andrea ForexMart]

Economic Calendar (September 28, 2017)

Know what will happen next in the financial markets with ForexMart's Forex Economic Calendar.

ForexMart's Forex Economic Calendar is a real-time, customizable, and multifunctional, forex tool that allows traders to be updated with the latest and most relevant market events. All information that could be potentially impact your trading will be listed and analyzed here.

A trader that knows more, profits more. Use ForexMart's Forex Economic Calendar and become a better trader today.

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[Andrea ForexMart]

Hurricanes to Slow Down US Economic Growth

The American economy improved slightly faster versus its earlier estimate during the Q2, this is the fastest growth recorded after two years. However, the progress could possibly slow down in Q3 brought by the blow of Hurricanes Harvey and Irma. The GDP rose at an annualized rate at 3.1 percent from the months of April to June, according to the Commerce Department on Thursday.

US economic status in the last quarter was considered the fastest since the Q1 of 2015, after the 1.2 percent progress from January to March. According to economists, the huge storms Harvey and Irma that hit Florida and Texas has the tendency to cutback six-tenths of GDP percentage point in the third quarter.

The home building, home sales,  industrial production, and retail sales dropped in August which was mainly blamed to hurricane Harvey. Moreover, the sluggish data is already expected in September due to the so-called ‘monster storm’ Irma. However, recovery plans are predicted to lift growth for the GDP in Q4 and also in 2018 earlier. The indications that show further improvement on business inventory investments could possibly ease down its effect towards the economy.

Other reports on Thursday states that the Commerce Department says, wholesale inventories grew by 1.0 percent for the month of August and 0.6 percent in July subsequently. While retailer’s inventories perked up by 0.7 percent and remained steady in July.  On one hand, the department added that goods trade deficit declined to 1.4 percent ($62.9 billion) last month, which led to an upside risk to growth forecast below 2.5 percent for the fourth quarter.

The aftermath of the previous storms Harvey and Irma continue to affect even the labor market which is projected to a weak growth on jobs for the current month. Based on the third readings of the Labor Department, the initial claims for unemployment insurance benefits rose to 12,000 according to a seasonally adjusted 272,000 for the week until 23rd of September. Furthermore, prices of long-dated U.S. Treasuries traded in a lower rung, and DXY weakened against another group of currencies.

[Andrea ForexMart]

Try the New Copy Trade System!

Dear traders!

ForexMart continuously aims to improve its work and provide clients with the wide range of services for online trading on the Forex currency market.

We are pleased to offer you to use the new copy trade system. This service allows you to trade, copying positions and trading strategies of the most successful traders in real time. Account monitoring gives the opportunity to monitor the daily update of trading indicators, that allows you to control the process yourself.

Our company offers to consider the accounts of three ForexMart top-traders. Choose the most appropriate trading style and subscribe to copy the deals in just one click!

The new service is ideal for beginners, as well as for traders who do not have a lot of time.  This type of trading does not require in-depth knowledge in Forex trading and allows you to save significant time. You just need to subscribe to one of the three offered strategies and the orders will be automatically copied and displayed on your account. The service is provided free of charge.

Stay tuned and watch the news. ForexMart always tries to make your trade even easier and more profitable!

[Andrea ForexMart]

Politically Impelled Depreciation of New Zealand Dollar

A decline in the local dollar is anticipated as warned by the leader of the small nationalist party which will determine the next government of the country following the uncertain outcome of the general election. The New Zealand dollar dropped to its lowest value since the latter part of May on Monday after the final counting of votes at the weekend which exhibits the opposition of the Labour-Green bloc leading paired against the ruling National party. Although, the National party occupies a greater number of seats.

After the final counting of numbers, there is a market speculation that the New Zealand first leader , WInston Peters, has to receive support from both parties to reach sufficient supporters to oversee the proportional representation system of the country and would be easier to work together along with the center-left Labour-Green bloc, inducing investors to sell their assets in New Zealand.

Peters negotiated with both Labour and National parties on Tuesday. He has previously served the ruling party headed by both political bodies. Once the election has ended, he was anticipated to publicize with the party would he be associated with on October 12. Yet,  reports from media say that he was not ready to announce his preferred coalition by Thursday and cannot decide if there will be an announcement on Friday.

The New Zealand currency plunged by 3.7 percent since the election on September 23rd. It reached a four-month low of $0.7052 on Monday then rose the following day traded at $0.7063.

Consequently, exporters will find this news a good event being an export-reliant nation as said by Winston Peters after its meeting with Labour when he was being interrogated about the depreciation of the currency.

The nationalist party supports the arbitration of the Reserve Bank of New Zealand in the foreign exchange market and the kiwi is ranked as 11th eleventh in the currency market in 2016. On the other hand, the Labour party supports some revisions in the mandate of the central bank related with inflation. The Labour party has more commonality with the protocols of NZ First and putting more pressure in the market regarding the changes in policies since the National has more control over 10 years. At the same time, both parties also favor the adjustments in immigration, foreign proprietorship, and renegotiation of some trade deals. Peters has not given any decisions but he mentioned that control in foreign ownership will be his focus on most of the talks.

[Andrea ForexMart]

World Bank Cuts Growth Projections in India

The Gross Domestic Product (GDP) of India may decline to 7.0 percent for this year versus 8.6 percent in 2015 due to concerns in demonetization and the Goods and Services Tax (GST). As per the forecast from the World Bank, controlled private investment brought by internal bottlenecks could impose downside pressure towards India’s potential growth.

On Wednesday, The International Monetary Fund (IMF) had revised lower the country's growth outlook at 6.7 percent in the current, this shows 0.5 percentage point lower than the two previous forecast and weaker than the 6.8 percent by China.

As indicated in the biannual economic update from South Asia Economic Focus, the economic development of India was greatly affected by the issues regarding the withdrawn banknotes and risks involving the GST. Therefore, resulting to an expected slow growth.

The growth could increase by 7.3 percent next year through implementing fair policies in balancing public expenditure with private investment. It is projected that sustained growth could lead to further poverty alleviation and more attention is necessary to help the informal economy gain benefits, according to a report issued prior the annual meeting of the World Bank and the IMF.

Moreover, the reduction on India’s economic growth also weighed down to South Asia, which resulted to a tip over the second rank followed by the East Asia and the Pacific.

On the other hand, both public and private expenditure have faster pace after the approval of the Seventh Central Pay Commission (7th CPC). And also because of the recovery in the rural demand subsequent to the agricultural impetus and normal monsoon. Meanwhile, the aggregate demand decline as public investment begin to weaken.

The bank mentioned that GST is forecasted to stall economic progress earlier next year, however, there is a tendency that momentum may raise. There are indications that shows manufacturing, post-GST and services could possibly decrease sharply.

The economic activity could sustain within a quarter in stabilizing the GDP rate at 7.0 percent in 2018.

[Andrea ForexMart]

Finance Minister Le Maire Confident for Optimistic French Economy

Finance Minister Bruno Le Maire is present in the conference with central bankers and Group of 20 finance ministers led by the International Monetary Fund. He met with JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and U.S. Treasury Secretary Steven Mnuchin on Thursday. During the meeting held in Washington,  Le Maire told officials his confidence towards the expected economic performance of France. Considering the determined behavior of Macron administration in implementing reforms. According to Le Maire, the main purpose of President Emmanuel Macron’s leadership is to give France a new and improved economy. There are different projections about French GDP but currently predicted to increase by 1.7 percent in 2017, which indicates the country’s strongest development after six years.

The French Ministry of the Economy and Finance reported the continuous expansion with the same pace in 2018,  however, the Finance Minister stated that it could possibly jump beyond official outlook.

After Macron’s five months in the position, he successfully put into effect complex labor laws reform which enables companies to have more flexible environment working period and implementation of job cuts. Moreover, the French leader began to discuss with associations and corporate groups the intention to revamp employee training and unemployment-insurance system.

The government also prepared the national budget for 2018 that will reduce taxes and public expenditures, Le Maire said.

[Andrea ForexMart]

ECB Asset Purchases Refused by the Court of Germany

The appeal for an injunction to prevent the Bundesbank in participation to the asset purchase program of the European Central Bank has been turned down by the Constitutional court of Germany, according to the recent statement of the court. The program is worth 2.3 trillion euro or $2.7 trillion.

As observed previously, the German court was reticent when it comes to the asset purchases in the past. The ruling is now left in the hands of the European Court of Justice which has sided with the ECB when bond buying was put into question.

[Andrea ForexMart]

Fed Sees Modest to Moderate Growth in US Economy

The American economy had a modest to moderate pace of expansion in September until earlier in October. This occurred amid the hurricanes that hit the some U.S. regions, while the Fed stated that the latest readings of the US economy were issued yesterday, but still showed several hints of rising inflation.

Moreover, the Federal Reserve said that the surge of hurricanes Harvey and Irma happened during the polling period which might have an unfavorable effect towards the economic growth in third quarter. As the report shows three out 12 Fed’s districts, including Atlanta, Dallas, and Richmond, suffered from major disaster from the storms. The Fed Reserve of Dallas, particularly, Houston, was badly affected and did not anticipate for a critical disruption in the long-term.

Moreover, the report further underlined the Fed’s major issue which is the insufficient evidence for the increasing inflation amid the need of finding competent laborers.

Excess demands were very drastic in healthcare and service positions, construction, skilled manufacturing, and transportation. Hence, these shortages constrain the growth of the business, according to the Fed. Nevertheless, it failed to lift wages higher and further resulted in slight changes in the overall selling prices in some regions, indicating an increase in manufacturing input costs.

As for the Fed, there is nothing new about rumors on strong economic development and employment, however, there are widespread price pressures that followed which triggered probability that inflation will be fixed at the low level as the policymakers did not understand clearly the reasons behind.

The current target inflation of the Fed downgraded to 1.3 percent versus the initial objective at 2 percent. On the other hand, Fed Chair Janet Yellen is expecting inflation to bounce back while the central bank is in the process of raising interest rates again by the end of the year.

[Andrea ForexMart]

World Economy’s Best Performance in Ten Years Boosted by China

The strong economic development of China boosted the global economy that has been perking up on its most excellent performance in 10 years. The world’s second-largest economy announced on Thursday the expansion of 6.8 percent during the third quarter, after central bank governor Zhou Xiaochuan contemplated about the 7 percent pace for the second half over the weekend. Moreover, due to hints about the prospect of a sharp decline in 2018 could fade away, the economists of Goldman Sachs upgraded their projection by 6.5 percent increase next year.
Indications of growth were clearly seen in Asia on Thursday, as the central bank of South Korea further raise its economic growth outlook for the current year, and exports from Japan attained double digits for three months straight in September, while the unemployment rate in Australia reduced surprisingly.  The International Monetary Fund (IMF) has lifted its forecast for the United States, China, Europe, and Japan, stating that the global economy is performing at its fastest pace in a decade.

The Washington-based IMF predicted the world economy will expand by 3.6 percent in 2017 and 3.7 percent in 2018, showing growth of 0.1 percentage point against the earlier estimate, with the Asian region contributed 63.3 percent for the development.

The renewal of China’s import demand became the major support throughout Asia, coupled with the strong recovery in Asian exports to EU and US that made an upswing around the globe, according to chief Asia-Pacific economist Klaus Baader from Société Générale SA.

Also, Zhou mentioned that the impetus for China’s acceleration in the second half is derived from the household consumption which was indicated in the statistics issued yesterday. While the retail sales grew by 10.3 percent last month earlier this year. Aside from consumption, the Chinese data includes government expenditure that provided 64.5 percent growth from Q1 to Q3 of 2017 which shows 2.8 percentage points higher versus the same period in 2016.

[Andrea ForexMart]

Unemployment Rate in France Drop in September

The total unemployment figures of France reduce in September based on the records from the Labour Ministry issued on Tuesday. This encourages French President Emmanuel Macron to execute further efforts to improve the job market.
The number of unemployed individuals in the mainland France was lowered down by 64,800 last month, this is the largest decrease since 1996.
The 1.8 percent drop after a month and 0.5 percent within a year resulted in a total of 3,475,600 jobless people which is the lowest level from the month of April.
The improvement was achieved due to reform efforts by Macron’s leadership that created more jobs and increased growth.

President Macron is considering the reduction of unemployment in the country down to 10 percent for years, overhauling the rules of labor industry last month. This could be followed by some changes in unemployment benefits and professional training subsequently.
The business confidence of France also perked up since Macron’s victory in May elections. The French politician pro-business reform agenda tend to shift company’s activities upwards in order to manage robust demand, according to a survey published on Tuesday morning.
Moreover, the emergence of new businesses led companies to hire additional workers in October which could regulate rising backlogs, hence, this is the fastest pace recorded in a decade based on the monthly purchasing managers survey.

On the other hand, industrial firms reported that their efficiency is moving towards the highest levels prior the outset of 2008-2009 global financial crisis indicated in a quarterly survey by the INSEE statistics agency on Tuesday. The expanding number of companies seems struggling to keep up with the demand. There are 32 percent of managers who admitted facing some congestion in the production system. This could be a positive indicator for the job markets considering that companies are forced to take more laborers in order to cope the demands of the client, therefore, reducing the unemployment rate.

[Andrea ForexMart]

US Economy Supported by Trade and Inventories

The American economy unanticipatedly sustained the rapid momentum in Q3, as the inventory investment increased and the smaller trade deficit eased off the impact from hurricanes towards the fall in consumer expenditure and curbed in construction.

The country’s GDP gained 3.0 percent at an annualized rate during the months of July until September, which further strengthened the robust business equipment spending as mentioned by the Commerce Department on Friday. While goods inventories for sale added nearly three-quarters of percentage point growth during the previous quarter and the improved GDP underlines the economic health. This excludes the inventory investment, the economy was able to advance by 2.3 percent rate against the slow down by 2.9 percent during the second quarter. The estimates for domestic demand also declined to 2.2 percent versus 3.3 percent obtained in Q2.

The United States acquired 3.1 percent growth during the second quarter, and this was the first time that the U.S growth reached higher than 3 percent for two consecutive quarters. Forecasts from economists show that GDP will increase by 2.5 percent in the third quarter. According to the US administration, it seems difficult to determine the effect of hurricanes Harvey and Irma towards the GDP in the third quarter. Initial evaluation indicates that the subsequent storms generated losses amounted to $US10.4 billion of government-owned fixed assets and  $US121.0 billion ($A157.8 billion) worth of privately owned fixed assets.

Inventories cumulated from firms came in at $US35.8 billion in the Q3, which boosted inventory investment by 0.73 percentage point to GDP growth in the said quarter. The inventories contributed an output of more than tenth of percentage point in the previous period. While economists are expecting for a decent expansion from inventories in the last quarter. Despite the drop in the fourth quarter and surpassed the sharpest decline in imports for three years which led to a smaller trade deficit and provided four-tenths of percentage point to economic development. Trade supported the output for three quarters in a row.

[Andrea ForexMart]

German Investor Confidence Rose According to Sentix

The German investors sentiment had increased, reaching its highest level for this month. The country is the largest economy in the eurozone that managed a global economic expansion based on the statement of Sentix issued on Monday. The survey was released since the EU obtained a fast-pace economic recovery subsequent to a prolonged period of slow economic growth, the development period was supported by the dynamic money-printing programme of the ECB. Moreover, this raises concerns regarding bond bubbles and property within the cluster of rich countries.

The economic sentiment index of Germany by the research group Sentix showed an upsurge of 42.4 versus 37.7 in October based on 1,000 investors who responded to the survey. Broader euro indices and the world economy arrive at 10-year highs.  European Sentix index gained 34 points in November compared with the 29.7 in October, overcoming analysts expectations and reaching its all-time high since July 2007 EUSTCS=ECI. Forecasts for other improvements of the European economy climb to 22.8 against 18.3 earlier.

[Andrea ForexMart]

Trump’s Approval Rating Declined: CNN poll

The American citizens have high approval rating to the US economy prior the Sept. 11, 2001 attacks, but the public’s confidence towards President Donald Trump has declined based on a new report. According to the result from CNN survey on Wednesday, there are 40 percent respondents who believe that Trump was able to fulfill his job and other election promises, indicating an 8 percent fall from April.

In addition to it, the 40 percent stated that Trump has the capacity to improve what the country needs as to the total of 49 percent after the voting. The declivity was brought by Republican and independents in general. Since November 2016, the Republicans who say that Trump is able to perform the much-needed change of the US was reduced by 10 percent. On the other hand, there is a 9 percent decrease for independents.

Nevertheless, there are 68% of respondents who consider the US economy healthy, the total was 11 percent higher before the inauguration of D.Trump. Contrarily, 59 percent expects for a better economic health in 2018. While 30 percent thinks Trump could further unify the country and not disunite it and 43 percent projected that he will strengthen the bond of the country in November 2016.

The United States presidential approval rating gained 36 percent since the beginning of the week, this is the lowest score since he was designated in office. The CNN polling conceived during November 2 to 5 with 1, 021 adults as a random sample. The margin of error (plus or minus) is 3.6 percentage points.

[Andrea ForexMart]

VAT Returns of Small Firms Incorporates to UK GDP Calculation

The Office for National Statistics evaluates the British economy by overhauling its way which includes huge VAT amounts from smaller companies for the first time. In the previous survey, the gross domestic product of the country was mainly based on the turnover of 45,000 largest firms. Since December, the data from the third of Britain’s 1.8m VAT returns will also be included in the turnover for the calculation of official GDP results.
With this, assessing UK economic growth will have dramatic changes for this could provide further insights from particular areas and industries. A higher proportion of VAT returns involves small businesses with a total of 98pc of UK companies.

In the past estimates of GDP, pubs and restaurants sectors, particularly  "food and beverage service activities" have high levels according to the 172 monthly poll and 28,000 tax returns.
According to the ONS, a much more detailed data will provide a comprehensive output of pubs, restaurants and takeaways and restaurants among various regions. The first new estimate encompasses VAT returns coming from small and medium businesses including 100 or fewer headcounts. While survey for large companies will remain to be part of the data gathering and ONS’s report. As there is only 20 percent of smaller firms in the UK economy, which means that the data accumulated by the national statistical institute will be more accurate but the overall GDP result could possibly be not altered despite its inclusion because major firms have a greater impact.

Based on the perspective of PwC’s Economist John Hawksworth, it would be better if the Statistics authority will release GDP forecast “ with and without (the) use of the new VAT data" respectively, in order for the public to understand the difference. On the other hand, ONS  chief economist Nick Vaughan announced that including additional information will be a gradual process.

[Andrea ForexMart]

Flat Economic Yield Curve Impact to the Economy

The U.S. Treasury yield curve is intensifying concern as it has been moving flat at a quicker rate which could affect the outlook for the economy. Although, this is already expected since the slope of the curve has been a relevant tool because of its stability and positive track record. Oppositely, a narrow curve would mean a slowdown in growth.

The economic signal has been more robust when there is an outright curve inversion, which happens when short-term yields are greater than those on longer-dated Treasuries. It is not the current situation but generally, people aim for 63 basis points. The difference between two- and 10-year Treasury yields have been reduced from 128 basis points in January which is the least gap since 2007 just before the recession began.

There are investors who believe that the Treasury yield curve is enough to guarantee a change in the economic outlook but it is still far ahead. It is necessary to stabilize the changes in the yield curve of the financial market compared to the general economic yield curve.

The spread between the federal funds rate and the nominal gross domestic product is the yield curve of the economy. This association is significant as it determined the ability of businesses and their consumers to afford higher borrowing costs which would ultimately affect the growth of the economy.

Based on third-quarter data,  the economy’s yield curve is near 300 basis points, which is can be achieved by taking the 4.1 percent annualized rate of growth in nominal GDP and deduct to the quarterly average of the federal funds rate of 1.15 percent. The spread widened by 65 basis points compared last year. However, despite the increase of 25 basis points by the Federal Reserve, the gap would increase the estimated by 4.5 percent to 5 percent growth in the nominal GDP which is already anticipated.

Nevertheless, changes in the yield curve of the economy will be supported by the higher spread between the federal funds rate and nominal GDP growth amid a not-so-strong and restricted growth of the financial market. This would prop up profits and equities of businesses. The future perspective of the fixed-income market may not be that positive since higher growth would induce Fed to normalize monetary policy through rate hikes.

[Andrea ForexMart]

Japanese Government Additional Budget for FY2017

The Japanese government allocated an extra budget of 2.7 to 2.9 trillion yen equivalent to $24-26 billion for the current fiscal year until March 2018. There is an extra budget estimated worth of 1 trillion yen to boost expenditures, according to the official sources from the government

Moreover, the government will remove excess cash compared to last year’s fiscal budget and unutilized money from debt processes since the lending costs were lower-than-expected, according to reports.

There is no plan to make up with a deficit in bond issuance as long as there is ambiguity since there is still uncertainty in the future plans.

After a major election in October, the Prime Minister Shinzo Abe’s cabinet members aims to boost childcare support, enhance productivity involving small and medium-sized companies which would toughen competition among agricultural, fishery and forestry industries.

[Andrea ForexMart]

France GDP Expected to Grow, says BoF

The economy of France is projected to increase at a steady pace in October to December based on the poll led by the Bank of France. The gross domestic product of the country is predicted to rise by 0.5 percent in Q4, which remains steady from the second estimate published in November. The French economy grew by 0.5 percent in the third quarter.

The data from the survey today indicates that the industrial production resumed growing until November. The business leaders mentioned that output is planned to increase at a consistent pace this month. Moreover, the manufacturing confidence index also sustained its score at 106 last month, versus the forecasted increase of 107. On the other hand, the service sector activity heightened in the previous month. Business executives expect for a slight increase in activity for this month. The services confidence index further showed a steady stance at 102 in November, as the construction activity had a sharp rise in the same month. The sentiment index in construction gained slightly from 103 to 104, which was the highest recorded since December 2007. According to forecast, the activity may grow at a hardly slower momentum in December.

[Andrea ForexMart]

Try the New Copy Trade System!

ForexMart continuously aims to improve its work and provide clients with the wide range of services for online trading on the Forex currency market.

We are pleased to offer you to use the new copy trade system. This service allows you to trade, copying positions and trading strategies of the most successful traders in real time. Account monitoring gives the opportunity to monitor the daily update of trading indicators, that allows you to control the process yourself.

Our company offers to consider the accounts of three ForexMart top-traders. Choose the most appropriate trading style and subscribe to copy the deals in just one click!

The new service is ideal for beginners, as well as for traders who do not have a lot of time.  This type of trading does not require in-depth knowledge in Forex trading and allows you to save significant time. You just need to subscribe to one of the three offered strategies and the orders will be automatically copied and displayed on your account. The service is provided free of charge.

Stay tuned and watch the news. ForexMart always tries to make your trade even easier and more profitable!

[Andrea ForexMart]

BoE will Keep the Normal Rates After Brexit

The Bank of England allows the financial institutions in the country to proceed with their selling transactions in the United Kingdom without the need for expensive subsidiaries after Brexit, despite the divorce deal between London and Brussels becomes unsuccessful as reported by the BBC.

The decision of the central bank will be publicized at 1300 GMT on Wednesday. These would ease problems to be faced by the European banks as they offer wholesale services in London that follows New York as the world’s financial capital.

Concerns regarding their requests for business hours, the BoE haven’t responded out of it. There are unidentified reports saying that the government and sound sources that the decision is supported.

The proposal of BoE would affirm for goodwill from Britain in Brexit talks that seek to maintain London as the financial center and manage more banks. 

There are more than 100 branches of lenders that operate in London which is headquartered in London. In the present, banks in Britain functions under EU “passporting” rules, which will end in March 2019 when Britain leaves the bloc.

[Andrea ForexMart]

Deposit Insurance

We want nothing but the best for all our clients – and that includes prioritizing your funds and interests.

ForexMart is a member of the Investor Compensation Fund, a fund conceived by the Section 17 of the Investment Services and Activities and Regulated Markets Law of 2007, which states every Cypriot investment firm must be part of the Fund. Its main objective is to secure claims of the covered clients in the event the company in question fails to perform its obligations, specifically:

Return the funds owed or belong to the covered client.
Turn over the financial instruments to the customer entrusted to the member firm.

The fund will pay the compensation for the affected client, subject to the existing legal and contractual terms. However, individuals with ongoing criminal proceedings are prohibited from making claims, as per Prevention and Suspension of the Legislation of Proceeds from Criminal Activities Law of 2007.

Compensation payable to the covered client will depend on the prevailing rules and company's books. It is computed by adding all the total established claims of the client against the firm, stemming from all the services rendered by the entity. As of present, the amount paid to the covered clients is €20,000.