Economic and company news by ForexMart

March 7, 2017

European stocks pulled down by German data

The European stocks dropped for three days in a row on Tuesday pulled by the decline in shares of Deutsche bank after asking for as much as $8.5 billion cash call. It’s shares declined close to 3 percent as a fresh low for the year.

Worsen by low corporate earnings report and industrial demand in Germany feel by 7.4 percent, the highest fall over the past 8 years, amid the global financial crisis that caused the investors to lose confidence setting the market in a lacklustre environment.

The U.S. futures began to fall slightly during the Wall Street ESc1 DJc1 as investors await for the possible next rate hike that is still uncertain but they are getting ready for it.

March 8, 2017
Pharma Stocks Drop as Trump Posts Drug Prices Tweet
Pharmaceutical stocks plummeted on Tuesday after Donald Trump plunged back into the drug pricing debacle after the US President tweeted a pledge to minimize the costs of medicinal products for US citizens. As stated in a tweet sent at 9:00 A.M., New York Time, Trump stated that his administration is currently working on a system which will enhance competition in the pharmaceutical industry. Analysts are saying that it is highly curious that Trump’s tweet comes immediately after the House healthcare reform bill, which is indicative of the administration’s efforts on drug and pharmaceutical pricing.

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March 8, 2017

Canada’s Economy Lead Over other G7 Countries

The Canadian economy is expected to gain 2.4% this year with equal expectations as of the United States and in the lead of other countries included in the Group of 7. The estimates were based from the Organisation for Economic Co-operation and Development

(OECD) release.

The international organization formerly mentioned about Canada’s possible economic improvement by 2.1 in 2017, which came in better and still appeared to be modest compared with the previous years of recoveries from economic decline.

The Paris-based institution hike up its projections for the selected biggest economies in the world which further includes USA and China, however, its evaluation for the world economy kept steady at 3.3% versus 3% in 2016.

Furthermore, the report mentioned that the US and Canada would likely outstrip other seven major economies which involve Germany as the next highest among the G7 with 1.8% growth in GDP.

For 2018, it is expected that the U.S. economy will earn 2.8% and 2.2% growth for Canada. Moreover, the forecast for the global economic growth is said to be 3.6%.

March 8, 2017


Dollar Trimmed Down after a Two-month High

The surge of U.S. dollar decelerated minimally on Wednesday session after reaching a two-month high against a basket of currencies last week. Investors are cautiously waiting on the sidelines as the Friday’s U.S. jobs report is about to be released soon. Moreover, there is a higher chance for a rate hike as the greenback sets in a tight range.

The appreciation of dollar seems like it achieved its limit with the rate hike in March in investors’ mind. Fed deliberating whether there will be a rate hike thrice for this year, this would prompt the central bank to provide hints as the workers’ salaries rise that could bring about inflation.

March 8, 2017

Pharma Stocks Drop as Trump Posts Drug Prices Tweet

Pharmaceutical stocks plummeted on Tuesday after Donald Trump plunged back into the drug pricing debacle after the US President tweeted a pledge to minimize the costs of medicinal products for US citizens. As stated in a tweet sent at 9:00 A.M., New York Time, Trump stated that his administration is currently working on a system which will enhance competition in the pharmaceutical industry. Analysts are saying that it is highly curious that Trump’s tweet comes immediately after the House healthcare reform bill, which is indicative of the administration’s efforts on drug and pharmaceutical pricing.

March 10, 2017

Nigeria Launched Recovery Plan for Economic Growth

The government of Nigeria has introduced its master plan to take off the recession with hopes of reaching 7.0% increase after three years, however, experts deemed that the target seems high to hit. The detailed outline of the plan was released on Monday including the possible programme of the oil giant in Western Africa to recover from the worst economic depression in 25 years.

John Ashbourne, an economist at the consultancy Capital Economics, said that one of the main considerations written in the document is the African Development Bank and World Bank to lend some money to the country since these banks provide borrowing plans.

The objective of the recovery plan is to diversify the economy by utilizing major industries inclusive of agriculture and energy as well as expanding production for oil up to 2.5 million barrels a day (BPD). As of this writing, the production arrives at 1.9 million bpd. The administration further initiated extensive projects for infrastructure aiming to improve transport system throughout the entire nation. Part of the goal is to improve the Gross Domestic Product with a 4.6% average until the year 2020 as the forecasted growth is at 7.0%.

Moreover, the global prices for oil have seen declined following the cut in revenue due to the Nigerian economy dependence from crude products. The naira established a weaker position and triggered inflation to beef up by 20%.

March 10, 2017

Next Visit of Vietnam’s PM to U.S. to Strengthen Ties

Prime Minister Nguyen Xuan Phuc aims to maintain its trading ties with the United States under the new administration while Vietnam likes to maintain U.S. being their leading partner. The prime minister’s next visit would strengthen ties between the two countries with Vietnam being the top potential beneficiary of the Trans-Pacific Partnership free trade agreement, known that Trump is against the continuation of this trade deal.


Their last official state meeting was in 2008 as he strengthened the security measure in problems regarding territorial claims with their neighboring country China. Their latest meetup was when both leaders attended the U.S.-ASEAN summit in February last year.

March 10, 2017

South Korean President Park Geun-hye Impeached amid Corruption Probe

A South Korean court has unanimously ruled for South Korean president Park Geun-hye’s impeachment following a corruption probe which has led to possibly one of the largest political scandals in the country’s history. The ruling states that the now former president must immediately vacate her luxurious Blue House residence in Seoul and has rendered the former president literally powerless. The impeachment must also immediately be followed by a presidential election within 60 days, and as of the moment, key opposition figures are leading in the country’s polls.

March 13, 2017

Brexit Dissenter Kristin Forbes to Resign from BoE Post

Kristin Forbes, one of the most vocal dissenters in the Bank of England’s nine-member Monetary Policy Committee, has decided to leave the UK central bank for good. Prior to this particular announcement, Forbes was constantly being tagged as a possible candidate for positions in the Federal Reserve since the UK-based financial analyst is an American citizen. Forbes has been known in the financial industry for her “dives” into obscure topics which have caused the central bank to rethink its stances on various situations. Just recently, Forbes has again made headlines by blatantly opposing the Brexit referendum last year.

March 13, 2017

Canada’s Partnership with Ivanhoe Cambridge and LOGOS to Invest in Indonesia and Singapore

The biggest pension fund managers in Canada settled an agreement with a real estate logistics operator, LOGOS and Ivanhoé Cambridge to have a venture with Asian countries Singapore and Indonesia.

This investment was constituted due to the increase of e-commerce together with the development of the middle-classes around the Southeast Asian market.

Based on the Reuters’ report, the Canada Pension Plan Investment Board (CPPIB) have its initial commitment worth US$200 million intended to achieve the 48% of LOGOS Singapore Logistics Venture (LSLV). Moreover, the Board is assumed to cater US$100 million for the LOGOS Indonesia Logistics Venture (LILV) for reaching 48% stake. The Canadian corporation mentioned that this partnership is considered as the primary step towards direct real estate investments within the two nations. Aside from the two aforementioned countries, LOGOS also have business in China and Australia.

March 13, 2017

Ford’s Lincoln Aims to Manufacture SUVs in China

Lincoln automobiles under Ford Motors Co’s plans to advance its entry to China and was doing some analysis on whether to manufacture cars locally. It aims to produce luxury SUVs in China by late 2019 with a bigger target of 80 stores by the end of the year from the former figure of 60 compared to the previous year of 65 Lincoln chain stores.


This move is aligned with the goals of competing with U.S. and German rivals as part of the world’s biggest auto market hereby prompted to design a car models particularly SUVs, to match the Chinese preference. Currently, the Lincoln automobiles are imported to China which a boost in sales as high as 180 percent in the previous year.

March 14, 2017

Argentine Labor Unions Protested Government Job Cuts

The Argentine Interior Minister, Rogelio Frigerio announced that the labor unions in Argentina put pressure on its government by initiating strikes and marches in advance of the mid-term elections of the country.

Mauricio Macri, 58, have been the country’s President for 15 months who pronounced its commitment to enliven the economy by taking back investor’s trust after 10 years of practicing

free-spending populist policies.

A hoard of laborers protested on March 7 expressing objection regarding job cuts and wages not adjusted for inflation which attained approximately 40 percent last year. Major labor organization has demonstrated its strikes over the previous weeks.

March 14, 2017

Turkey’s Dispute with Netherlands Called Off its Diplomatic Ties

Turkey plans to put off diplomatic ties with the Netherlands as announced by the Dutch ambassador on Monday, escalating dispute between both countries. This was triggered after the Netherlands refused to permit Turkish Foreign Minister, Mevlüt Çavuşoğlu, to participate in the political rallies of emigrants.


Moreover, there is a tendency for the Deputy Prime Minister, Numan Kurtulmuş, to re-assess its agreement with the European Union and put on hold the migrants from Turkish territory to Europe. Kurtulmuş noted that their actions are in response to how they were treated. The Dutch government was compared to the Nazis by the Turkish President, Recep Tayyip Erdoğan, which was responded by the Dutch Prime Minister Mark Rutte to be offensive and demands an apology.

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EUR/USD Fundamental Analysis: March 15, 2017

The USD increased in value as the market anticipates the release of the FOMC rate announcement later today. As a result, the EUR/USD consistently weakened yesterday and has managed to break through 1.0650 points and is currently situated at just above 1.0600 points. A lot of analysts have been saying that the currency pair could possibly consolidate within the 1.0600-1.0700 barrier during the week of the FOMC statement and could possibly maintain its place within the region up until the end of this week.

The expected rate hike this coming March is pretty much secured and what the market will be focusing now is the amount of hawkishness of this particular announcement, and this is where the uncertainty lies. The majority of market players have no idea on just how hawkish the statement should be in order to push the value of the dollar further. Nonetheless, the market expects that there would be some sort of clue on the Federal Reserve’s next move and if possible, hints on the next scheduled interest rate hike from the central bank. Of course, it would definitely be good news for the market if the statement outwardly gives out clues of the next rate hike, but then again the central bank is not known for such moves and could possibly state that the schedule of the subsequent rate hikes would depend on the status of various economic data in the future.

The volatility of the EUR/USD pair could possibly be increased by the release of the CPI index data and the retail sales data. The currency pair could possibly drop to 1.0600 points and could even reach 1.0580 for a short period if the data comes out as positive.

GBP/USD Fundamental Analysis: March 15, 2017

The sterling pound has been widely expected by analysts to undergo a lot of pressure both in the short term and medium term, with bounces in the GBP/USD pair translating into selloffs and this was what the market has been seeing in the past few days as far as the GBP/USD pair is concerned. The currency pair briefly bounced at the 1.2250 region but eventually fizzled out as the pair was met with massive selloffs at this region. As of the moment, the currency pair looks very fragile and is currently situated at the 1.2150 barrier, Brexit process notwithstanding.

The invocation of the Article 50 is getting closer but as far as the UK government is concerned, there are no hints yet as to the exact date of the said invocation. The government has already decided to invoke the article this month but has refused to announce the specific date for the event. It is only a matter of time before the invocation but none of them has asked the EU leaders with regards to the timeline of the said process. It appears that there has been no consultation whatsoever between the eurozone and UK leaders with regards to the date of the invocation, and some EU officials are even saying that the actual negotiations might have to wait until June even if the invocation happens this month. Due to this confusion, the sterling pound has been consistently kept under pressure, with the GBP/USD pair in the midst of suffering.

In addition to the mentioned uncertainties, the UK Deputy Governor has also announced his resignation, adding up to the already heightened concerns within the economy. The FOMC rate announcement will be happening later today, and a couple of economic data such as the CPI index and retail sales data are also due to be released today. These are all expected to further induce the GBP/USD pair to plummet towards 1.2000 in the short term basis.

March 21, 2017

Reshuffle of China’s Central Bank's Monetary Policy Committee

China has reshuffled its cabinet officials. Guo Shuqing has been appointed as China's banking regulator of the central bank's monetary policy committee. He was positioned as the chairman of the China Banking Regulatory Commission. On the other hand, Ding Xuedong replacing the Xiao Jie, was appointed as the finance minister who is the former deputy secretary-general of the committee.

The policy meeting is scheduled to gather every quarter of the year to talk about the current economic and policy concerns and have their suggestions. Although, the final decision of main primary currency rate and borrowing rates should be approved by the senior cabinet as well as the party leaders.

March 21, 2017

Iranian Year is a Year of “Economy of Resistance”, Khamenei Says

The supreme Leader of Iran, Ayatollah Ali Khamenei have reiterated on Monday for a call of a “resistance economy” which underlines the domestic production. Khamenei further mentioned that officials should also prioritize major concerns in relation to jobs and youth employment. He added that economic problems, inclusive of discrimination, inflation, social imparity and unemployment, causes people to feel bitterness particularly those in the working class.

The 77-year old leader addresses May elections which involve the possible second term of President Hassan Rouhani, even though he currently faces extensive criticism from conservatives due to the stagnant economic condition.

Rouhani administration was able to sustain the economy from the time he was in the position in 2013. The inflation was trimmed by 40 percent and lower than 10 percent while global sanctions were depleted by means of a nuclear agreement with the world powers. However, members of Iran Conservatives doubt the benefits of the nuclear deal concessions.

On the other hand, Rouhani attempt to justify his accomplishments after the broadcast made by Khamenei.

March 21, 2017

Iranian Year is a Year of “Economy of Resistance”, Khamenei Says

The supreme Leader of Iran, Ayatollah Ali Khamenei have reiterated on Monday for a call of a “resistance economy” which underlines the domestic production. Khamenei further mentioned that officials should also prioritize major concerns in relation to jobs and youth employment. He added that economic problems, inclusive of discrimination, inflation, social imparity and unemployment, causes people to feel bitterness particularly those in the working class.

The 77-year old leader addresses May elections which involve the possible second term of President Hassan Rouhani, even though he currently faces extensive criticism from conservatives due to the stagnant economic condition.

Rouhani administration was able to sustain the economy from the time he was in the position in 2013. The inflation was trimmed by 40 percent and lower than 10 percent while global sanctions were depleted by means of a nuclear agreement with the world powers. However, members of Iran Conservatives doubt the benefits of the nuclear deal concessions.

On the other hand, Rouhani attempt to justify his accomplishments after the broadcast made by Khamenei.

March 22, 2017

Cuban Citizens in Favor of American Ally

A rare poll conducted over the Cuban populace showed results that nearly all of the citizens of Cuba were in favor of having relations with U.S since a large number of respondents desire for more tourists to come and visit the island and further development of privately-owned businesses.

The survey involves 840 individuals polled late 2016 and led by NORC at the University of Chicago, an independent social research organization, presenting 55 percent of the answer says that normal relations with the United States would be great for the Caribbean nation.

Moreover, participants from ages 18-29 expressed their approval for closer economic relations with the USA reaching 70 percent or 8 out of 10 of the respondents believed for the tourism expansion for the republic.

The poll conducted by NORC was done through face-to-face interviews during October and November of the previous year. The margin of sampling error of the survey is plus or minus 3.8 percentage points.

Withal, there are 77 percent who had an optimistic outlook for the America and others have said that they would leave Cuba if would be given an opportunity. Some people who answered the survey deemed to be more cautious when expressing their opinions.

March 22, 2017

Japan Exports Rose in February After Two Years

Japan exports rose for more than two years in February after a decline in January. It has exceeded the expected 10.6 percent as the annual export grew by 11.3 percent. It reached by1.3 percent in the month of January, as the highest gain since 2 years ago according to the data from the Ministry of Finance.This has caused the trade surplus gap to widen with raising concerns of U.S. protectionism.

The increase in Japan’s trade surplus becomes a problem for the Japanese policymakers after it has been secluded by President Trump, against the competitors from China and Germany. Although the head of Mizuho Research Institute Research Department said that the trade surplus may not have reached dangerous levels but it has been in the lows for a long time.

An economic talk between the U.S. and Japan is scheduled in the middle of April with Tokyo aiming to elude trade arguments concerning car exports concentrating on U.S. infrastructure investment

March 22, 2017

Japanese Exports Surge to Highest Value in Two Years as China Becomes Top Customer

Japanese exports surged for the third consecutive time last month as the country’s economic recovery has been further augmented by an increase in the international demand for the country’s products. This recent increase in the country’s exports is reportedly Japan’s biggest within a two-year period, and is reflective of the Asian Lunar New Year holidays. In addition, Japanese PM Shinzo Abe has also become increasingly outspoken with regards to free trade, which could pave the way towards protectionism within the country.

March 27, 2017

China and New Zealand Expanded FTA to Strengthen Ties

Chinese Premier Li Kequiang and New Zealand’s Prime Minister Bill English have agreed to expand the current Free Trade Agreement (FTA) to strengthen cooperation between both nations. Li agreed with the changes in FTA started since 2008 after signing nine pacts with English that would implement the renewed FTA on April 25. Both governments also pledged to work hand -in-hand with the expansion strategy of China called as “One Belt, One Road”.

New Zealand is the first Western country to approve an FTA with China as they are the second largest trading partner of New Zealand. They were also the primary country to join the Asian Infrastructure Investment Bank (AIIB) of China that assisted both the United Kingdom and Australia.

China also intends to cut steel production and exports to a minimal amount with New Zealand while the accusation of steel dumping was toned down by English.The South China Sea issue was also raised but was deemed to be sensitive but concluded that this would not have an impact on the relationship.

March 27, 2017

Vulnerable Regions in Britain Agreed to Leave EU

Further countries of the Great Britain agreed to withdraw from the European Union despite its high susceptibility from the impact brought by Brexit towards the economy, the analysis was based on the recently conducted research following the preparation of the government to set the Article 50 in motion.

According to Demos (Think tank) researchers, the regions that were studied includes Wales, north-east and east Midlands reviewing each state’s reliance on EU exports, utilization of European laborers as well as receipts of grants. The mentioned countries greatly depend on the European market in spite of the fact that majority of the leave voters came from these regions. Moreover, Wales issued 67% of exports, while 62% from the north-east and about 55% from Yorkshire and Humberside.

In addition to it, the government is hoping to minimize the effect by means of a renewed free trade agreement, however, EU negotiators insist that the UK must resolve its divorce settlement terms in the first place.

March 30, 2017

Asian Stocks Mix Up as Oil Maintains Gains, JPY Drops

Asian stocks started off on a mixed note as global equities stayed within its record highs as the Trump administration attempts to enliven its legislative agendas.On the other hand, the Japanese yen and crude oil prices were able to maintain its hold on the price surge last Wednesday. Oil prices traded within the $49.50 range as oil stockpiles increased minutely as compared to its initial projections. Meanwhile, Treasury yields plummeted as a reaction to the said surge last Wednesday.