Source : Investing.com
Wall Street futures were trading flat with mixed signs
on Tuesday as investors looked ahead to key economic data and the first
Federal Reserve (Fed) officials to speak after the release of inflation
figures later in the day, while oil appeared unable to reach $50.
The blue-chip Dow futures inched up one point, or 0.01%, by 10:51AM GMT, or 6:51AM ET, the S&P 500 futures edged down one point, or 0.04%, while the tech-heavy Nasdaq 100 futures advanced 3 points, or 0.07%.
The Commerce Department will publish April inflation figures at 12:30GMT, or 8:30AM ET, Tuesday. Market analysts expect consumer prices to inch up 0.3%, while core inflation is forecast to increase 0.2%.
On a yearly base, core CPI
is projected to climb 2.1%. Core prices are viewed by the Federal
Reserve as a better gauge of longer-term inflationary pressure because
they exclude the volatile food and energy categories. The central bank
usually tries to aim for 2% core inflation or less.
Rising inflation would be a catalyst to push the Federal Reserve toward raising interest rates.
In that light, market participants will focus on the first Fed officials to speak after the data is released.
San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart will discuss the economy at a Politico event in Washington, D.C. at 16:00GMT, or 12:00PM ET.
Later, Dallas Fed President Rob Kaplan will moderate a Q&A at a Fed community forum in Midland, Texas at 17:15GMT, or 1:15PM ET.
Looking ahead, Fed chair Janet Yellen will give a speech to the World
Affairs Council in Philadelphia on June 6, just before the blackout
period for the June 15 FOMC meeting. The announcement fueled speculation
the Fed chief may try to firm up a message for markets ahead of the
June policy meeting.
Also on Tuesday’s economic docket, housing starts and building permits will be released at 12:30GMT, or 8:30AM ET, while industrial production and capacity utilization are due at 13:15GMT, or 9:15AM ET.
In company news, Home Depot Inc (NYSE:HD) traded up more than 1% in the pre-market after the home improvement retailer reported better than expected earnings and raised its annual guidance.
TJX Companies Inc (NYSE:TJX) was also slated to report earnings before the opening bell.
Meanwhile, oil prices hit fresh seven-month highs on Tuesday in early European trade, amid mounting concerns over global supply disruptions.
Black gold has been well-supported in recent sessions due to a
combination of Nigerian, Libyan and Venezuelan supply outages, declining
U.S. shale output and reduced production of Canadian crude as a result
of fires in Alberta's oil sands region.
However, gains were pared as the U.S. session prepared to get underway with Brent moving into the red after having traded as high as 49.47 on Tuesday.
U.S. crude futures inched up 0.04% to $47.74 by 10:52AM GMT, or 6:52AM ET, while Brent oil traded down 0.31% to $48.82.
#Free Forex Signal
Tuesday, May 17, 2016
Vodafone says European recovery will hasten earnings growth
By Paul Sandle
LONDON (Reuters) - Vodafone (LON:VOD) said its recovery would accelerate this year after investment in faster networks boosted demand in Europe and helped the group return to underlying revenue and core earnings growth for the first time since 2008.
Chief Executive Vittorio Colao said a strong year for the world's second mobile operator had been capped by a recovery in the final quarter in Europe, its largest region which has taken more than five years to nurse back to health.
"We achieved the first quarter of positive revenue growth in Europe since December 2010," he said on Tuesday.
In Germany, Vodafone was "back in game" against former incumbent Deutsche Telekom (DE:DTEGn), while Italy, another laggard, also recovered in the final quarter, he said.
Its performance in its home market was marred by problems with a new billing system. Colao said the business should be back to normal in the second half of the year.
The company has been spared the drop to fourth place in the consumer market in Britain after Europe on May 11.
Colao said the European Commission had no choice but to block the merger between rivals Telefonica's O2 and Hutchison's Three because they were in separate network sharing agreements with Vodafone and market leader BT's EE.
The ruling does not bring any certainty to the market, with the future of both companies in Britain in doubt.
"My sense is that there will be commercial alliances, possibly deals," he said.
NETWORK UPGRADE
Vodafone has spent 19 billion pounds ($27.51 billion) on Project Spring, a program that has brought 4G speeds to 87 percent of its European footprint, built more fixed-line fiber and extended 3G coverage in emerging markets such as India.
Colao said the group had 47 million customers on faster 4G networks across 21 countries, and on average they were using twice as much data as they were on 3G networks.
"Price is coming down, but people are spending more," he said. "It's a win-win for consumers and for the company."
Vodafone reported earnings before interest, tax, depreciation and amortization of 11.6 billion pounds for the year to end-March, slightly shy of forecasts but up 2.7 percent and said it expected this rate to accelerate to 3-6 percent this year.
"I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders," Colao said.
Capital expenditure will fall after the end of Project Spring, but not as much as had been forecast, to the mid-teens as a percentage of revenue rather than 13-14 percent.
Shares in Vodafone, which have fallen 2 percent in the last 12 months against a 11 percent decline for the European sector, were up 2.4 percent at 229 pence at 1030 GMT.
Analysts at Citi said Vodafone's improving core earnings momentum should be met positively, although the raised capex outlook, and its likely impact on free cash flow and dividends would offset that.
Vodafone reported full-year revenue of 41 billion pounds, up 2.3 percent on an underlying basis. It raised its final dividend by 2.0 percent to 7.77 pence.
LONDON (Reuters) - Vodafone (LON:VOD) said its recovery would accelerate this year after investment in faster networks boosted demand in Europe and helped the group return to underlying revenue and core earnings growth for the first time since 2008.
Chief Executive Vittorio Colao said a strong year for the world's second mobile operator had been capped by a recovery in the final quarter in Europe, its largest region which has taken more than five years to nurse back to health.
"We achieved the first quarter of positive revenue growth in Europe since December 2010," he said on Tuesday.
In Germany, Vodafone was "back in game" against former incumbent Deutsche Telekom (DE:DTEGn), while Italy, another laggard, also recovered in the final quarter, he said.
Its performance in its home market was marred by problems with a new billing system. Colao said the business should be back to normal in the second half of the year.
The company has been spared the drop to fourth place in the consumer market in Britain after Europe on May 11.
Colao said the European Commission had no choice but to block the merger between rivals Telefonica's O2 and Hutchison's Three because they were in separate network sharing agreements with Vodafone and market leader BT's EE.
The ruling does not bring any certainty to the market, with the future of both companies in Britain in doubt.
"My sense is that there will be commercial alliances, possibly deals," he said.
NETWORK UPGRADE
Vodafone has spent 19 billion pounds ($27.51 billion) on Project Spring, a program that has brought 4G speeds to 87 percent of its European footprint, built more fixed-line fiber and extended 3G coverage in emerging markets such as India.
Colao said the group had 47 million customers on faster 4G networks across 21 countries, and on average they were using twice as much data as they were on 3G networks.
"Price is coming down, but people are spending more," he said. "It's a win-win for consumers and for the company."
Vodafone reported earnings before interest, tax, depreciation and amortization of 11.6 billion pounds for the year to end-March, slightly shy of forecasts but up 2.7 percent and said it expected this rate to accelerate to 3-6 percent this year.
"I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders," Colao said.
Capital expenditure will fall after the end of Project Spring, but not as much as had been forecast, to the mid-teens as a percentage of revenue rather than 13-14 percent.
Shares in Vodafone, which have fallen 2 percent in the last 12 months against a 11 percent decline for the European sector, were up 2.4 percent at 229 pence at 1030 GMT.
Analysts at Citi said Vodafone's improving core earnings momentum should be met positively, although the raised capex outlook, and its likely impact on free cash flow and dividends would offset that.
Vodafone reported full-year revenue of 41 billion pounds, up 2.3 percent on an underlying basis. It raised its final dividend by 2.0 percent to 7.77 pence.
Saudi Arabia aims to salvage white elephant financial district
By Angus McDowall
RIYADH (Reuters) - The plan to build a financial district from scratch was viewed by Saudi Arabia's neighbors as among the glossiest excesses of the kingdom's oil boom profligacy: a white elephant in the making, unlikely to attract tenants and possibly never even to be completed.
The creators of the King Abdullah Financial District (KAFD) envisaged a kind of mini-Dubai, a haven for foreign financial services and investors as well as local banks and companies currently doing business from offices all over Riyadh.
But more than 10 years later -- and a year after it was supposed to be finished -- most of the 1.6-million-sq-metre district on the edge of Riyadh is still a construction site, and no businesses have moved in.
Reform-minded Deputy Crown Prince Mohammed bin Salman said last month he wants to salvage the $10 billion project. The Public Investment Fund, reimagined as the world's largest sovereign wealth fund, will be based there and sources have said it will also own the project.
According to the prince's "Vision 2030", KAFD will become a "special zone" with internationally competitive regulations, an easier visa regime and a direct connection to the airport, steps he hopes will "increase the chances of ... success".
Another change is to increase the amount of residential use from the 1.7 million sq meters now designated for office space. According to a 2015 report by real estate analyst Jones Lang LaSalle, rents are bottoming out in Riyadh's current 2.5 million sq meters of office space but prices for residential units are rising.
Potential tenants and investors are both hopeful and skeptical about the plan.
"The potential is amazing. The inside is impressive. I'd like to live there," said one Dubai-based expatriate who does business in Saudi and who has toured the site. "As an urban space it's interesting, with its design and architecture."
He questioned how successful the project could be in the current economic climate, however. The main contractor is Saudi Binladen Group, the biggest construction firm in the kingdom, which has been struggling since last year.
"It will not be finished. Decision-making is very slow (on the project, and) people don't have cash," he said. Like other business people interviewed for this story, he didn't want to be named expressing an opinion about such an important royal initiative.
A senior Saudi former banker expressed similar concerns.
"If the plan does create a genuine free zone and makes things smoother for newcomers, it'll be 'bingo!'" he said, but added that a recovery in the oil-dependent economy was key.
Another senior Gulf banker said his firm had no plans to move into the complex despite its "impressive" looks, and expressed concern that banks might only be able to rent, rather than own, buildings there.
MORE RESIDENTIAL SPACE
Inside the district last week, swallows swooped between palm trees and sparrows pecked among decorative desert shrubs near the almost completed conference center. The parts that are finished include sections of its stone-paved "wadi" walkway and distinctive glass towers. From high in one tower, swimming pools and children's playgrounds could be seen on other roofs.
Jacob Kurek, a partner at the firm responsible for the KAFD masterplan, Danish firm Henning Larsen, said the original plans were flexible enough to transform space earmarked for offices into residences or retail space. A direct link to the airport would be easy to install via Riyadh's new metro, which will have a station at KAFD, he said.
Other changes, such as a different regulatory regime, visa exemptions and any blunting of Saudi Arabia's strict social restrictions, would be more complicated, however.
At the moment, visas can take many days to arrange and require a complex process of invitation by a sponsor and plenty of supplementary documentation. Setting up a business means getting permissions from many government departments.
Mustafa Alani, a security expert with close ties to the Saudi Interior Ministry, said visa exemptions could work like the waiver program in the United States, or like residence permits issued by free zones in the United Arab Emirates.
"It's not a visa, but it's not a free walk-in either. There might be a geographical restriction," he said, suggesting those who enter on the special visas might be forbidden to leave KAFD, or be limited to the Saudi capital.
According to rules dictated by Saudi Arabia's powerful conservative clerics, women must wear an ankle-length cloak in public and are forbidden from driving. Men and women who are not related may not mingle unchaperoned. Cinemas, music concerts and dancing are banned and alcohol and pork are illegal. Businesses must shut for half an hour during each of five daily prayers.
Saudi Arabia has found ways to accommodate foreigners, however. Expatriate compounds, hidden behind high walls, protected by army gun emplacements, to which Saudi nationals are usually forbidden entry, allow foreigners to dress and behave much as they do in the West.
Such extreme segregation could not work for a project like KAFD, which is also marketed at Saudi businesses and residents.
But there are other examples of areas that Saudis can visit that enjoy a special status and do not require strict Islamic dress codes or forbid gender mixing, like Riyadh's Diplomatic Quarter.
For one Western business executive now living in Dubai, the social restrictions, especially those on women, were among the most important factors in any decision to move to Saudi.
"To me, the visas are nice, but they're not even on the list of the top ten things that need to change," he said.
RIYADH (Reuters) - The plan to build a financial district from scratch was viewed by Saudi Arabia's neighbors as among the glossiest excesses of the kingdom's oil boom profligacy: a white elephant in the making, unlikely to attract tenants and possibly never even to be completed.
The creators of the King Abdullah Financial District (KAFD) envisaged a kind of mini-Dubai, a haven for foreign financial services and investors as well as local banks and companies currently doing business from offices all over Riyadh.
But more than 10 years later -- and a year after it was supposed to be finished -- most of the 1.6-million-sq-metre district on the edge of Riyadh is still a construction site, and no businesses have moved in.
Reform-minded Deputy Crown Prince Mohammed bin Salman said last month he wants to salvage the $10 billion project. The Public Investment Fund, reimagined as the world's largest sovereign wealth fund, will be based there and sources have said it will also own the project.
According to the prince's "Vision 2030", KAFD will become a "special zone" with internationally competitive regulations, an easier visa regime and a direct connection to the airport, steps he hopes will "increase the chances of ... success".
Another change is to increase the amount of residential use from the 1.7 million sq meters now designated for office space. According to a 2015 report by real estate analyst Jones Lang LaSalle, rents are bottoming out in Riyadh's current 2.5 million sq meters of office space but prices for residential units are rising.
Potential tenants and investors are both hopeful and skeptical about the plan.
"The potential is amazing. The inside is impressive. I'd like to live there," said one Dubai-based expatriate who does business in Saudi and who has toured the site. "As an urban space it's interesting, with its design and architecture."
He questioned how successful the project could be in the current economic climate, however. The main contractor is Saudi Binladen Group, the biggest construction firm in the kingdom, which has been struggling since last year.
"It will not be finished. Decision-making is very slow (on the project, and) people don't have cash," he said. Like other business people interviewed for this story, he didn't want to be named expressing an opinion about such an important royal initiative.
A senior Saudi former banker expressed similar concerns.
"If the plan does create a genuine free zone and makes things smoother for newcomers, it'll be 'bingo!'" he said, but added that a recovery in the oil-dependent economy was key.
Another senior Gulf banker said his firm had no plans to move into the complex despite its "impressive" looks, and expressed concern that banks might only be able to rent, rather than own, buildings there.
MORE RESIDENTIAL SPACE
Inside the district last week, swallows swooped between palm trees and sparrows pecked among decorative desert shrubs near the almost completed conference center. The parts that are finished include sections of its stone-paved "wadi" walkway and distinctive glass towers. From high in one tower, swimming pools and children's playgrounds could be seen on other roofs.
Jacob Kurek, a partner at the firm responsible for the KAFD masterplan, Danish firm Henning Larsen, said the original plans were flexible enough to transform space earmarked for offices into residences or retail space. A direct link to the airport would be easy to install via Riyadh's new metro, which will have a station at KAFD, he said.
Other changes, such as a different regulatory regime, visa exemptions and any blunting of Saudi Arabia's strict social restrictions, would be more complicated, however.
At the moment, visas can take many days to arrange and require a complex process of invitation by a sponsor and plenty of supplementary documentation. Setting up a business means getting permissions from many government departments.
Mustafa Alani, a security expert with close ties to the Saudi Interior Ministry, said visa exemptions could work like the waiver program in the United States, or like residence permits issued by free zones in the United Arab Emirates.
"It's not a visa, but it's not a free walk-in either. There might be a geographical restriction," he said, suggesting those who enter on the special visas might be forbidden to leave KAFD, or be limited to the Saudi capital.
According to rules dictated by Saudi Arabia's powerful conservative clerics, women must wear an ankle-length cloak in public and are forbidden from driving. Men and women who are not related may not mingle unchaperoned. Cinemas, music concerts and dancing are banned and alcohol and pork are illegal. Businesses must shut for half an hour during each of five daily prayers.
Saudi Arabia has found ways to accommodate foreigners, however. Expatriate compounds, hidden behind high walls, protected by army gun emplacements, to which Saudi nationals are usually forbidden entry, allow foreigners to dress and behave much as they do in the West.
Such extreme segregation could not work for a project like KAFD, which is also marketed at Saudi businesses and residents.
But there are other examples of areas that Saudis can visit that enjoy a special status and do not require strict Islamic dress codes or forbid gender mixing, like Riyadh's Diplomatic Quarter.
For one Western business executive now living in Dubai, the social restrictions, especially those on women, were among the most important factors in any decision to move to Saudi.
"To me, the visas are nice, but they're not even on the list of the top ten things that need to change," he said.
Greece wants Eurogroup to focus on short-, medium-term debt relief on May 24
ATHENS (Reuters) - Greece expects euro zone finance ministers to
focus on short- and medium-term debt relief for Athens when they meet on
May 24, government spokeswoman Olga Gerovasili said on Tuesday.
Finance ministers from the shared currency bloc are expected to assess next week whether Greece qualifies for new bailout loans and to discuss debt restructuring. Athens is hoping that reprofiling its mountain of debt will help it regain market access and convince its public that the six years of austerity they have endured are beginning to pay off.
"We expect the Eurogroup to talk about the short-term and medium-term decisions on debt relief," Gerovasili told reporters. "A long-term solution is a bigger discussion."
Cash-strapped Greece has been excluded from global debt markets since 2014. It agreed a third multi-billion euro bailout last July and started talks with lenders last week on how to make its debt more manageable.
Euro zone finance ministers aim to draw up a "road map" at the May 24 meeting to secure the participation of the International Monetary Fund in the Greek bailout rather than finalize a full three-stage debt-relief program.
The euro zone is considering longer grace periods and maturities for Greece in the medium term. But it may also decide on whether more debt relief is needed to ensure that Athens' debt-servicing costs are sustainable in 2018 if Greece meets its primary surplus target of 3.5 percent of GDP.
The IMF believes Athens will miss that target unless it is granted significant debt relief and takes extra measures. It has not yet decided whether it will participate financially in Greece's bailout program, but its involvement is crucial for Germany.
Asked about the views of the IMF on debt relief, Gerovasili said that they were 'always in the right direction'.
The Greek parliament has already approved pension and income tax reforms demanded by its lenders and worth 2 percent of GDP.
Prime Minister Alexis Tsipras, who has a narrow majority of 153 seats in the 300-seat parliament, hopes that a vote on tax hikes and new reforms on Sunday, two days before the Eurogroup meeting, will help the country during the talks.
Lawmakers will also vote on a contingency mechanism to impose spending cuts that will be activated only if Athens misses its fiscal targets.
Finance ministers from the shared currency bloc are expected to assess next week whether Greece qualifies for new bailout loans and to discuss debt restructuring. Athens is hoping that reprofiling its mountain of debt will help it regain market access and convince its public that the six years of austerity they have endured are beginning to pay off.
"We expect the Eurogroup to talk about the short-term and medium-term decisions on debt relief," Gerovasili told reporters. "A long-term solution is a bigger discussion."
Cash-strapped Greece has been excluded from global debt markets since 2014. It agreed a third multi-billion euro bailout last July and started talks with lenders last week on how to make its debt more manageable.
Euro zone finance ministers aim to draw up a "road map" at the May 24 meeting to secure the participation of the International Monetary Fund in the Greek bailout rather than finalize a full three-stage debt-relief program.
The euro zone is considering longer grace periods and maturities for Greece in the medium term. But it may also decide on whether more debt relief is needed to ensure that Athens' debt-servicing costs are sustainable in 2018 if Greece meets its primary surplus target of 3.5 percent of GDP.
The IMF believes Athens will miss that target unless it is granted significant debt relief and takes extra measures. It has not yet decided whether it will participate financially in Greece's bailout program, but its involvement is crucial for Germany.
Asked about the views of the IMF on debt relief, Gerovasili said that they were 'always in the right direction'.
The Greek parliament has already approved pension and income tax reforms demanded by its lenders and worth 2 percent of GDP.
Prime Minister Alexis Tsipras, who has a narrow majority of 153 seats in the 300-seat parliament, hopes that a vote on tax hikes and new reforms on Sunday, two days before the Eurogroup meeting, will help the country during the talks.
Lawmakers will also vote on a contingency mechanism to impose spending cuts that will be activated only if Athens misses its fiscal targets.
Futures slightly lower after oil rally takes a breather
By Yashaswini Swamynathan
(Reuters) - U.S. stock index futures were slightly lower on Tuesday as oil prices steadied after touching a six-month high.
* Oil prices were off about 0.2 percent after rallying nearly 3 percent to a shade below $50 as supply disruptions in Nigeria and positive outlook from Goldman Sachs (NYSE:GS) boosted risk appetite. [O/R]
* Wall Street closed up 1 percent on Monday, also boosted by a jump in Apple's (O:AAPL) shares. Apple was up 0.7 percent at $94.55 in premarket trading on Tuesday.
* Investors will look out for data scheduled to be released at 8:30 a.m. ET (1230 GMT). U.S. consumer prices likely rose 0.3 percent in April, after rising 0.1 percent in March. Housing starts likely rose to 1.1 million units in April.
* Industrial production is expected to have rebounded by 0.3 percent in April from a 0.6 percent fall in March. The data is expected at 9:15 a.m. ET.
* Investors are closely watching data to assess when the Federal Reserve will raise interest rates. While some Fed officials have suggested two hikes this year, traders are pricing in only one hike at the end of the year.
* Among Fed speakers scheduled to speak today are San Francisco Fed president John Williams and Atlanta Fed president Dennis Lockhart who will speak at 12:25 p.m. ET in Washington.
* Home Depot (N:HD) was up 1.6 percent at $137.50 after the home improvement company raised its full-year sales growth and profit forecast.
* Off-price retailer TJX Cos Inc (N:TJX) was up 3.2 percent at $77.60, the company is expected to report first-quarter results at 8:30 a.m. ET.
Futures snapshot at 7:20:
* S&P 500 e-minis (ESc1) were down 2.5 points, or 0.12 percent, with 146,071 contracts changing hands.
* Nasdaq 100 e-minis (NQc1) were down 1.5 points, or 0.03 percent, in volume of 19,312 contracts.
* Dow e-minis (1YMc1) were down 13 points, or 0.07 percent, with 23,169 contracts changing hands.
(Reuters) - U.S. stock index futures were slightly lower on Tuesday as oil prices steadied after touching a six-month high.
* Oil prices were off about 0.2 percent after rallying nearly 3 percent to a shade below $50 as supply disruptions in Nigeria and positive outlook from Goldman Sachs (NYSE:GS) boosted risk appetite. [O/R]
* Wall Street closed up 1 percent on Monday, also boosted by a jump in Apple's (O:AAPL) shares. Apple was up 0.7 percent at $94.55 in premarket trading on Tuesday.
* Investors will look out for data scheduled to be released at 8:30 a.m. ET (1230 GMT). U.S. consumer prices likely rose 0.3 percent in April, after rising 0.1 percent in March. Housing starts likely rose to 1.1 million units in April.
* Industrial production is expected to have rebounded by 0.3 percent in April from a 0.6 percent fall in March. The data is expected at 9:15 a.m. ET.
* Investors are closely watching data to assess when the Federal Reserve will raise interest rates. While some Fed officials have suggested two hikes this year, traders are pricing in only one hike at the end of the year.
* Among Fed speakers scheduled to speak today are San Francisco Fed president John Williams and Atlanta Fed president Dennis Lockhart who will speak at 12:25 p.m. ET in Washington.
* Home Depot (N:HD) was up 1.6 percent at $137.50 after the home improvement company raised its full-year sales growth and profit forecast.
* Off-price retailer TJX Cos Inc (N:TJX) was up 3.2 percent at $77.60, the company is expected to report first-quarter results at 8:30 a.m. ET.
Futures snapshot at 7:20:
* S&P 500 e-minis (ESc1) were down 2.5 points, or 0.12 percent, with 146,071 contracts changing hands.
* Nasdaq 100 e-minis (NQc1) were down 1.5 points, or 0.03 percent, in volume of 19,312 contracts.
* Dow e-minis (1YMc1) were down 13 points, or 0.07 percent, with 23,169 contracts changing hands.
Rio Tinto submits feasibility study for Guinea's giant iron ore deposit
CONAKRY (Reuters) - Anglo-Australian mining giant Rio Tinto (L:RIO)
has submitted feasibility studies to the Guinean government for its
massive Simandou project, considered the world's biggest untapped iron
ore deposit.
The studies are a further step toward bringing onstream a deposit that holds more than 2 billion tonnes. The real cost of the project has yet to be revealed but it is tipped to reach $20 billion.
It could make Guinea one of the world's top iron ore exporters, but analysts caution the world already has a surplus of iron ore for the foreseeable future.
Rio Tinto's joint venture Simfer said in a statement on Monday it had submitted the bankable feasibility study of the mine and the infrastructure of the Simandou South Project on the basis of extensive analysis over the last two years.
Simfer is a joint venture owned by the government of Guinea (7.5 percent), Rio Tinto (46.6 percent), Chalco Iron Ore Holdings - a consortium of Chinese state-owned firms led by the Aluminium Corporation of China (41.3 percent) - and the International Finance Corporation (4.6 percent), part of the World Bank.
When fully operational, Simandou has the potential to double Guinea’s GDP, the project partners have said, while China, the world's largest iron ore consumer provides an obvious market.
The studies are a further step toward bringing onstream a deposit that holds more than 2 billion tonnes. The real cost of the project has yet to be revealed but it is tipped to reach $20 billion.
It could make Guinea one of the world's top iron ore exporters, but analysts caution the world already has a surplus of iron ore for the foreseeable future.
Rio Tinto's joint venture Simfer said in a statement on Monday it had submitted the bankable feasibility study of the mine and the infrastructure of the Simandou South Project on the basis of extensive analysis over the last two years.
Simfer is a joint venture owned by the government of Guinea (7.5 percent), Rio Tinto (46.6 percent), Chalco Iron Ore Holdings - a consortium of Chinese state-owned firms led by the Aluminium Corporation of China (41.3 percent) - and the International Finance Corporation (4.6 percent), part of the World Bank.
When fully operational, Simandou has the potential to double Guinea’s GDP, the project partners have said, while China, the world's largest iron ore consumer provides an obvious market.
Oil prices ease after hitting 2016 highs
Source : Investing.com
Oil futures took a breather Tuesday, after hitting 2016 highs as the market focused on supply disruptions that prompted long-time bear Goldman Sachs (NYSE:GS) to issue a bullish assessment on near-term prices.
U.S. crude futures were at $47.89 a barrel at 0655 ET, after hitting highs of $48.42 earlier, the strongest level since October.
Brent crude futures slid 0.05 cents or 0.10% to $48.92 a barrel, after rising as high as $49.47 earlier, the most since early November.
Crude oil prices have rallied for most of the past two weeks due to a combination of Nigerian, Venezuelan and other outages, declining U.S. output and curtailments of Canadian crude after fires in Alberta's oil sands region.
Oil futures took a breather Tuesday, after hitting 2016 highs as the market focused on supply disruptions that prompted long-time bear Goldman Sachs (NYSE:GS) to issue a bullish assessment on near-term prices.
U.S. crude futures were at $47.89 a barrel at 0655 ET, after hitting highs of $48.42 earlier, the strongest level since October.
Brent crude futures slid 0.05 cents or 0.10% to $48.92 a barrel, after rising as high as $49.47 earlier, the most since early November.
Crude oil prices have rallied for most of the past two weeks due to a combination of Nigerian, Venezuelan and other outages, declining U.S. output and curtailments of Canadian crude after fires in Alberta's oil sands region.
Sunday, May 1, 2016
Forex - Weekly outlook: May 2 - 6
Source : Investing.com
The dollar slumped to eight-month lows against a basket of its major peers on Friday as the yen continued to build on strong gains from earlier in the week, following central bank meetings in the U.S. and Japan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.76% at 93.02 late Friday, the weakest level since August 2015. The index ended the week down 2.14%.
The greenback weakened across the board after the Federal Reserve kept interest rates on hold on Wednesday and indicated that any future interest rate hikes would be data dependent.
Data on Thursday showed that the U.S. economy grew at the slowest rate in two years in the first quarter, with gross domestic product increasing just 0.5% from a year earlier.
Another report on Friday showed that both personal spending and the personal consumption expenditures price index, the Fed’s preferred inflation measure, ticked up 0.1% in March.
The yen continued to rally after the Bank of Japan held off from unveiling new policy easing measures at the conclusion of its policy meeting on Thursday, defying market expectations for further stimulus.
USD/JPY fell 1.54% to 106.45 late Friday, the weakest since October 2014. The pair ended the week down 4.49%, the worst weekly performance since the 2008 global financial crisis.
The yen was also higher against the euro, with EUR/JPY down 0.73% at 121.94 late Friday. The pair ended the previous session down 2.73%.
The euro rose to almost three-week highs against the dollar, with EUR/USD advancing 0.9% to 1.1453.
The single currency was boosted after data on Friday showed that the bloc’s economy grew at the fastest pace in five years in the first quarter, with GDP rising 0.6%, well ahead of expectations of 0.4% growth.
The euro area economy notched up annual growth of 1.6%.
But a separate report showed that the region slid back into deflation in April, with consumer prices falling 0.2% from a year earlier.
Elsewhere, sterling touched 12-week highs against the dollar, with GBP/USD hitting 1.4670, the strongest since early February and was last at 1.4602, ending the week with gains of 1.09%.
Demand for the pound was underpinned as concerns diminished that a June 23 referendum will lead to a vote for Britain to leave the European Union.
In the week ahead, investors will be turning their attention to Friday’s U.S. jobs report for April, with any changes to wage growth particularly in focus. Traders will also be looking at reports on manufacturing and service sector activity from the U.S., China and the U.K.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
Financial markets in China will be closed for a national holiday.
Markets in the U.K. will also be closed for a holiday.
European Central Bank head Mario Draghi is to speak at an event in Frankfurt.
In the U.S., the Institute for Supply Management is to publish its monthly manufacturing index.
Tuesday, May 3
Markets in Japan will be closed for a holiday.
The Reserve Bank of Australia is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
Australia is also to release data on building approvals.
China is to publish the Caixin manufacturing index.
The U.K. is to publish its manufacturing activity index.
Bank of Canada Governor Stephen Poloz is to speak at an event in Los Angeles.
Wednesday, May 4
New Zealand is to release its quarterly employment report.
Markets in Japan are to remain closed for a national holiday.
The U.K. is to report on construction sector activity.
The U.S. is to release the ADP report on private sector job creation, the ISM report on service sector activity and data on factory orders.
Both the U.S. and Canada are to release trade data.
Thursday, May 5
Markets in Japan are to remain closed for a national holiday.
Australia is to release reports on retail sales and the trade balance.
China is to publish the Caixin report on service sector activity.
The U.K. is to report on service sector activity.
The U.S. is to release data on building permits and the weekly report on jobless claims.
Friday, May 6
The RBA is to publish its monetary policy statement, which gives insight into the bank's view of economic conditions and inflation.
The Swiss National Bank is to publish data on its foreign currency reserves.
Canada is to produce its monthly employment report.
The U.S. is to round up the week with the closely watched report on nonfarm payrolls.
The dollar slumped to eight-month lows against a basket of its major peers on Friday as the yen continued to build on strong gains from earlier in the week, following central bank meetings in the U.S. and Japan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.76% at 93.02 late Friday, the weakest level since August 2015. The index ended the week down 2.14%.
The greenback weakened across the board after the Federal Reserve kept interest rates on hold on Wednesday and indicated that any future interest rate hikes would be data dependent.
Data on Thursday showed that the U.S. economy grew at the slowest rate in two years in the first quarter, with gross domestic product increasing just 0.5% from a year earlier.
Another report on Friday showed that both personal spending and the personal consumption expenditures price index, the Fed’s preferred inflation measure, ticked up 0.1% in March.
The yen continued to rally after the Bank of Japan held off from unveiling new policy easing measures at the conclusion of its policy meeting on Thursday, defying market expectations for further stimulus.
USD/JPY fell 1.54% to 106.45 late Friday, the weakest since October 2014. The pair ended the week down 4.49%, the worst weekly performance since the 2008 global financial crisis.
The yen was also higher against the euro, with EUR/JPY down 0.73% at 121.94 late Friday. The pair ended the previous session down 2.73%.
The euro rose to almost three-week highs against the dollar, with EUR/USD advancing 0.9% to 1.1453.
The single currency was boosted after data on Friday showed that the bloc’s economy grew at the fastest pace in five years in the first quarter, with GDP rising 0.6%, well ahead of expectations of 0.4% growth.
The euro area economy notched up annual growth of 1.6%.
But a separate report showed that the region slid back into deflation in April, with consumer prices falling 0.2% from a year earlier.
Elsewhere, sterling touched 12-week highs against the dollar, with GBP/USD hitting 1.4670, the strongest since early February and was last at 1.4602, ending the week with gains of 1.09%.
Demand for the pound was underpinned as concerns diminished that a June 23 referendum will lead to a vote for Britain to leave the European Union.
In the week ahead, investors will be turning their attention to Friday’s U.S. jobs report for April, with any changes to wage growth particularly in focus. Traders will also be looking at reports on manufacturing and service sector activity from the U.S., China and the U.K.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
Financial markets in China will be closed for a national holiday.
Markets in the U.K. will also be closed for a holiday.
European Central Bank head Mario Draghi is to speak at an event in Frankfurt.
In the U.S., the Institute for Supply Management is to publish its monthly manufacturing index.
Tuesday, May 3
Markets in Japan will be closed for a holiday.
The Reserve Bank of Australia is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
Australia is also to release data on building approvals.
China is to publish the Caixin manufacturing index.
The U.K. is to publish its manufacturing activity index.
Bank of Canada Governor Stephen Poloz is to speak at an event in Los Angeles.
Wednesday, May 4
New Zealand is to release its quarterly employment report.
Markets in Japan are to remain closed for a national holiday.
The U.K. is to report on construction sector activity.
The U.S. is to release the ADP report on private sector job creation, the ISM report on service sector activity and data on factory orders.
Both the U.S. and Canada are to release trade data.
Thursday, May 5
Markets in Japan are to remain closed for a national holiday.
Australia is to release reports on retail sales and the trade balance.
China is to publish the Caixin report on service sector activity.
The U.K. is to report on service sector activity.
The U.S. is to release data on building permits and the weekly report on jobless claims.
Friday, May 6
The RBA is to publish its monetary policy statement, which gives insight into the bank's view of economic conditions and inflation.
The Swiss National Bank is to publish data on its foreign currency reserves.
Canada is to produce its monthly employment report.
The U.S. is to round up the week with the closely watched report on nonfarm payrolls.
Gold / Silver / Copper futures - weekly outlook: May 2 - 6
Source : Investing.com
Gold prices soared to a 15-month peak on Friday, as a broadly weaker U.S. dollar and indications that the Federal Reserve was in no hurry to raise interest rates boosted the yellow metal.
Gold for June delivery on the Comex division of the New York Mercantile Exchange jumped to an intraday high of $1,299.00 a troy ounce, the most since January 2015, before paring gains to end at $1,290.50, up $24.10, or 1.9%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, crashed to 92.98 on Friday, a level not seen since August. It ended the day at 93.02, down 2.14% for the week, as a lack of action by the Bank of Japan and the cautious tone taken by the Federal Reserve earlier in the week continued to weigh.
The dollar dropped to an 18-month low of 106.28 against the yen on Friday, with the pair posting its biggest weekly percentage decline since the 2008 financial crisis in the aftermath of the Bank of Japan's decision not to ease policy further.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
For the week, gold prices rallied $57.60, or 4.92%, amid indications the Fed will take a slow and cautious approach to raising interest rates this year.
The U.S. central bank left interest rates unchanged following its two-day meeting on Wednesday and issued a statement implying it was in no hurry to raise rates.
Offering little hope of a move in June, the Fed said U.S. "economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate."
Data released Thursday revealed that the U.S. economy grew at an annualized rate of just 0.5% in the first quarter, its weakest pace in two years, while a report on Friday showed that U.S. inflation barely rose in March as consumer spending remained tepid.
The downbeat data makes it less likely that the Fed will be able to follow through on its projected two interest rate increases this year.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Prices of the yellow metal are up nearly 22% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over the global economy.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
There is also ISM manufacturing data on Monday and ISM services on Wednesday. In addition, there are more than a half-dozen Fed speakers on tap for the coming week as traders search for more clues on the timing of the next U.S. rate hike.
Elsewhere in metals trading, silver futures for May delivery climbed 23.6 cents, or 1.34%, on Friday to settle at $17.78 a troy ounce after hitting a session high of $17.99, a level not seen since January 2015.
On the week, silver futures surged 88.9 cents, or 5.26%, tracking strong gains in gold. For the month, silver soared 15%.
Also on the Comex, copper for July delivery spiked 5.2 cents, or 2.33%, on Friday to end at $2.283 a pound. For the week, New York-traded copper prices inched up 1.4 cents, or 0.44%.
Copper traders will be looking out for private sector data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.
The official China's manufacturing purchasing managers' index published Sunday dipped to 50.1 last month from 50.2 in March, compared to expectations for a reading of 50.4.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
European Central Bank President Mario Draghi is due to deliver a speech titled "The future of financial markets: A changing view of Asia" at the Asian Development Bank annual meeting, in Frankfurt.
Later in the day, the U.S. Institute of Supply Management is to publish a report on manufacturing activity, while San Francisco Fed President John Williams will speak at a public event.
Tuesday, May 3
China is to release data on the private sector Caixin manufacturing index.
The Reserve Bank of Australia will publish its interest rate decision.
In the U.S., both Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart are scheduled to speak.
Wednesday, May 4
The U.S. is to release the monthly ADP nonfarm payrolls report as well as data on the ISM non-manufacturing index, while the U.S. Energy Information Administration is to release its weekly report on oil stockpiles.
Thursday, May 5
China is to release data on the private sector Caixin services index.
The U.S. is to release weekly data on initial jobless claims, while Atlanta Fed's Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed President James Bullard and San Francisco Fed's Williams are all due to participate in a panel discussion titled "International Monetary Policy and Reform in Practice" at the Hoover Institute conference.
Friday, May 6
The U.S. is to round up the week with the closely watched nonfarm payrolls report.
Gold prices soared to a 15-month peak on Friday, as a broadly weaker U.S. dollar and indications that the Federal Reserve was in no hurry to raise interest rates boosted the yellow metal.
Gold for June delivery on the Comex division of the New York Mercantile Exchange jumped to an intraday high of $1,299.00 a troy ounce, the most since January 2015, before paring gains to end at $1,290.50, up $24.10, or 1.9%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, crashed to 92.98 on Friday, a level not seen since August. It ended the day at 93.02, down 2.14% for the week, as a lack of action by the Bank of Japan and the cautious tone taken by the Federal Reserve earlier in the week continued to weigh.
The dollar dropped to an 18-month low of 106.28 against the yen on Friday, with the pair posting its biggest weekly percentage decline since the 2008 financial crisis in the aftermath of the Bank of Japan's decision not to ease policy further.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
For the week, gold prices rallied $57.60, or 4.92%, amid indications the Fed will take a slow and cautious approach to raising interest rates this year.
The U.S. central bank left interest rates unchanged following its two-day meeting on Wednesday and issued a statement implying it was in no hurry to raise rates.
Offering little hope of a move in June, the Fed said U.S. "economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate."
Data released Thursday revealed that the U.S. economy grew at an annualized rate of just 0.5% in the first quarter, its weakest pace in two years, while a report on Friday showed that U.S. inflation barely rose in March as consumer spending remained tepid.
The downbeat data makes it less likely that the Fed will be able to follow through on its projected two interest rate increases this year.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Prices of the yellow metal are up nearly 22% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over the global economy.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
There is also ISM manufacturing data on Monday and ISM services on Wednesday. In addition, there are more than a half-dozen Fed speakers on tap for the coming week as traders search for more clues on the timing of the next U.S. rate hike.
Elsewhere in metals trading, silver futures for May delivery climbed 23.6 cents, or 1.34%, on Friday to settle at $17.78 a troy ounce after hitting a session high of $17.99, a level not seen since January 2015.
On the week, silver futures surged 88.9 cents, or 5.26%, tracking strong gains in gold. For the month, silver soared 15%.
Also on the Comex, copper for July delivery spiked 5.2 cents, or 2.33%, on Friday to end at $2.283 a pound. For the week, New York-traded copper prices inched up 1.4 cents, or 0.44%.
Copper traders will be looking out for private sector data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.
The official China's manufacturing purchasing managers' index published Sunday dipped to 50.1 last month from 50.2 in March, compared to expectations for a reading of 50.4.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
European Central Bank President Mario Draghi is due to deliver a speech titled "The future of financial markets: A changing view of Asia" at the Asian Development Bank annual meeting, in Frankfurt.
Later in the day, the U.S. Institute of Supply Management is to publish a report on manufacturing activity, while San Francisco Fed President John Williams will speak at a public event.
Tuesday, May 3
China is to release data on the private sector Caixin manufacturing index.
The Reserve Bank of Australia will publish its interest rate decision.
In the U.S., both Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart are scheduled to speak.
Wednesday, May 4
The U.S. is to release the monthly ADP nonfarm payrolls report as well as data on the ISM non-manufacturing index, while the U.S. Energy Information Administration is to release its weekly report on oil stockpiles.
Thursday, May 5
China is to release data on the private sector Caixin services index.
The U.S. is to release weekly data on initial jobless claims, while Atlanta Fed's Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed President James Bullard and San Francisco Fed's Williams are all due to participate in a panel discussion titled "International Monetary Policy and Reform in Practice" at the Hoover Institute conference.
Friday, May 6
The U.S. is to round up the week with the closely watched nonfarm payrolls report.
5 Things to Watch on the Economic Calendar This Week
Source : Investing.com
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
There is also ISM manufacturing data on Monday and ISM services on Wednesday. In addition, there are more than a half-dozen Fed speakers on tap for the coming week as traders search for more clues on the timing of the next U.S. rate hike.
Elsewhere, market players will also be looking out for data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.
Outside the G7, traders will be awaiting a monetary policy announcement from the Reserve Bank of Australia on Tuesday.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. U.S. nonfarm payrolls report
The U.S. Labor Department will release its April nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.
The consensus forecast is that the data will show jobs growth of 200,000 last month, following an increase of 215,000 in March, the unemployment rate is forecast to hold steady at 5.0%, while average hourly earnings are expected to rise 0.3% after gaining 0.3% a month earlier.
An upbeat employment report would help support the case for the Federal Reserve to gradually tighten monetary policy this year.
2. U.S. ISM PMI surveys
The U.S. Institute of Supply Management is to release data on April manufacturing activity at 14:00GMT, or 10:00AM ET, on Monday. The gauge is expected to inch down 0.4 points to 51.4. Anything above 50.0 signals expansion.
Meanwhile, the ISM is to report on April service sector activity on Wednesday, amid expectations for a modest increase.
3. Fed speakers
Market players will pay close attention to a number of speeches from Federal Reserve officials during the week to judge the balance of opinion among policymakers on the prospect of further rate hikes.
The Fed speakers start Sunday with New York Fed President William Dudley, the official viewed as most closely aligned with Fed Chair Janet Yellen. On Monday, San Francisco Fed President John Williams will speak at a public event.
Tuesday sees Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart take the stage, followed by Minneapolis Fed President Neel Kashkari on Wednesday.
On Thursday, Atlanta Fed's Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed President James Bullard and San Francisco Fed's Williams are all due to participate in a panel discussion titled "International Monetary Policy and Reform in Practice" at the Hoover Institute conference.
4. China manufacturing PMIs
China is to publish results of the Caixin manufacturing index at 1:45GMT on Tuesday, or 9:45PM ET Monday. It is seen rising to 49.9 in April from 49.7 in March
The official China's manufacturing purchasing managers' index published Sunday dipped to 50.1 last month from 50.2 in March, compared to expectations for a reading of 50.4.
5. Reserve Bank of Australia rate decision
The RBA's latest interest rate decision is due on Tuesday at 4:30GMT, or 12:30AM ET. Most economists expect no policy change, while some believe the central bank can surprise with a 25 basis point rate cut in an effort to boost inflation and spur economic activity.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for April to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
There is also ISM manufacturing data on Monday and ISM services on Wednesday. In addition, there are more than a half-dozen Fed speakers on tap for the coming week as traders search for more clues on the timing of the next U.S. rate hike.
Elsewhere, market players will also be looking out for data on China's manufacturing sector due on Tuesday, amid ongoing concerns over the health of the world's second biggest economy.
Outside the G7, traders will be awaiting a monetary policy announcement from the Reserve Bank of Australia on Tuesday.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. U.S. nonfarm payrolls report
The U.S. Labor Department will release its April nonfarm payrolls report at 12:30GMT, or 8:30AM ET, on Friday.
The consensus forecast is that the data will show jobs growth of 200,000 last month, following an increase of 215,000 in March, the unemployment rate is forecast to hold steady at 5.0%, while average hourly earnings are expected to rise 0.3% after gaining 0.3% a month earlier.
An upbeat employment report would help support the case for the Federal Reserve to gradually tighten monetary policy this year.
2. U.S. ISM PMI surveys
The U.S. Institute of Supply Management is to release data on April manufacturing activity at 14:00GMT, or 10:00AM ET, on Monday. The gauge is expected to inch down 0.4 points to 51.4. Anything above 50.0 signals expansion.
Meanwhile, the ISM is to report on April service sector activity on Wednesday, amid expectations for a modest increase.
3. Fed speakers
Market players will pay close attention to a number of speeches from Federal Reserve officials during the week to judge the balance of opinion among policymakers on the prospect of further rate hikes.
The Fed speakers start Sunday with New York Fed President William Dudley, the official viewed as most closely aligned with Fed Chair Janet Yellen. On Monday, San Francisco Fed President John Williams will speak at a public event.
Tuesday sees Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart take the stage, followed by Minneapolis Fed President Neel Kashkari on Wednesday.
On Thursday, Atlanta Fed's Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed President James Bullard and San Francisco Fed's Williams are all due to participate in a panel discussion titled "International Monetary Policy and Reform in Practice" at the Hoover Institute conference.
4. China manufacturing PMIs
China is to publish results of the Caixin manufacturing index at 1:45GMT on Tuesday, or 9:45PM ET Monday. It is seen rising to 49.9 in April from 49.7 in March
The official China's manufacturing purchasing managers' index published Sunday dipped to 50.1 last month from 50.2 in March, compared to expectations for a reading of 50.4.
5. Reserve Bank of Australia rate decision
The RBA's latest interest rate decision is due on Tuesday at 4:30GMT, or 12:30AM ET. Most economists expect no policy change, while some believe the central bank can surprise with a 25 basis point rate cut in an effort to boost inflation and spur economic activity.
Crude oil futures - weekly outlook: May 2 - 6
Source : Investing.com
Oil futures pulled back from the highest level since November on Friday, as news of a monthly climb in production from the Organization of the Petroleum Exporting Countries underlined concerns over a global supply glut.
On the ICE Futures Exchange in London, Brent oil for June delivery rallied to an intraday peak of $48.29 a barrel, the most since November 9, before turning lower to close at $47.37, down 40 cents, or 0.84% for the day.
OPEC's oil output in April rose to the highest level in recent history, a Reuters survey found on Friday, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.
According to the survey, OPEC’s April output increased to 32.64 million barrels a day from 32.47 million barrels a day a month earlier, reiterating concerns related to the massive supply glut on global energy markets.
Despite Friday’s modest decline, London-traded Brent futures rose $3.00, or 6.69%, on the week, the fourth straight weekly gain. For the month, prices soared 21.5%.
Brent futures prices are up by roughly 45% since briefly dropping below $30 a barrel in mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in June dipped 11 cents, or 0.24%, to end the week at $45.92 a barrel. Prices hit $46.78 earlier, a level not seen since November 4.
For the week, New York-traded oil futures advanced $2.17, or 5.01%, the fourth consecutive weekly rise. The U.S. benchmark ended April with a gain of nearly 20%.
Nymex oil prices are up nearly 50% since falling to 13-year lows at $26.05 on February 11, as a decline in U.S. shale production boosted sentiment. Oilfield services provider Baker Hughes said Friday the number of rigs drilling for oil in the U.S. fell by 11 last week to 332, a fresh six-year low. At this time last year, drillers were operating 679 oil rigs.
However, analysts warned that market conditions remained weak due to an ongoing glut. U.S. crude oil stockpiles rose by 2.0 million barrels last week to a record-high of 540.6 million barrels, according to the U.S. Energy Information Administration.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $1.45, compared to a gap of $1.74 by close of trade on Thursday.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Oil traders will also keep an eye out for monthly manufacturing data from the U.S. and China to gauge the strength of the global economy. The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
The U.S. Institute of Supply Management is to publish a report on manufacturing activity.
Tuesday, May 3
China is to release data on the private sector Caixin manufacturing index.
Later in the day, the American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, May 4
The U.S. is to release the monthly ADP nonfarm payrolls report as well as data on the ISM non-manufacturing index, while the U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.
Thursday, May 5
The U.S. is to release weekly data on initial jobless claims.
Friday, May 6
The U.S. is to round up the week with the closely watched nonfarm payrolls report, while Baker Hughes will release weekly data on the U.S. oil rig count.
Oil futures pulled back from the highest level since November on Friday, as news of a monthly climb in production from the Organization of the Petroleum Exporting Countries underlined concerns over a global supply glut.
On the ICE Futures Exchange in London, Brent oil for June delivery rallied to an intraday peak of $48.29 a barrel, the most since November 9, before turning lower to close at $47.37, down 40 cents, or 0.84% for the day.
OPEC's oil output in April rose to the highest level in recent history, a Reuters survey found on Friday, as production increases led by Iran and Iraq more than offset a strike in Kuwait and other outages.
According to the survey, OPEC’s April output increased to 32.64 million barrels a day from 32.47 million barrels a day a month earlier, reiterating concerns related to the massive supply glut on global energy markets.
Despite Friday’s modest decline, London-traded Brent futures rose $3.00, or 6.69%, on the week, the fourth straight weekly gain. For the month, prices soared 21.5%.
Brent futures prices are up by roughly 45% since briefly dropping below $30 a barrel in mid-February, despite the collapse of talks at a Doha summit in April aimed at achieving a production freeze among OPEC and Non-OPEC producers. OPEC meets on June 2 in Vienna and may discuss the freeze initiative again.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in June dipped 11 cents, or 0.24%, to end the week at $45.92 a barrel. Prices hit $46.78 earlier, a level not seen since November 4.
For the week, New York-traded oil futures advanced $2.17, or 5.01%, the fourth consecutive weekly rise. The U.S. benchmark ended April with a gain of nearly 20%.
Nymex oil prices are up nearly 50% since falling to 13-year lows at $26.05 on February 11, as a decline in U.S. shale production boosted sentiment. Oilfield services provider Baker Hughes said Friday the number of rigs drilling for oil in the U.S. fell by 11 last week to 332, a fresh six-year low. At this time last year, drillers were operating 679 oil rigs.
However, analysts warned that market conditions remained weak due to an ongoing glut. U.S. crude oil stockpiles rose by 2.0 million barrels last week to a record-high of 540.6 million barrels, according to the U.S. Energy Information Administration.
Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $1.45, compared to a gap of $1.74 by close of trade on Thursday.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Oil traders will also keep an eye out for monthly manufacturing data from the U.S. and China to gauge the strength of the global economy. The U.S. and China are the world’s two largest oil consuming nations and manufacturing numbers are used as indicators for fuel demand growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 2
The U.S. Institute of Supply Management is to publish a report on manufacturing activity.
Tuesday, May 3
China is to release data on the private sector Caixin manufacturing index.
Later in the day, the American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, May 4
The U.S. is to release the monthly ADP nonfarm payrolls report as well as data on the ISM non-manufacturing index, while the U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.
Thursday, May 5
The U.S. is to release weekly data on initial jobless claims.
Friday, May 6
The U.S. is to round up the week with the closely watched nonfarm payrolls report, while Baker Hughes will release weekly data on the U.S. oil rig count.
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