• MTS Economic News_20181026

    26 Oct 2018 | Economic News

• The dollar and the Japanese yen rose on Friday as U.S. stocks rebounded to positive territory, although Asian equities remained in the red.

The U.S. dollar index that tracks the greenback against other currencies rose 0.2% to 96.41by 1:05 AM ET (05:45 GMT). The index hit a two-month high on Thursday.

However, risk sentiment seemed to have turned sour on Friday as Asian stocks and U.S. stock futures both traded lower.

Meanwhile the yen also gained as the USD/JPY pair traded 0.2% lower to 112.19.

The USD/CNY pair was up 0.2% to 6.9623 as the People's Bank of China set the yuan reference rate at 6.9510 vs the previous day's fix of 6.9409.

• British finance minister Philip Hammond is likely to warn that a no-deal Brexit would hit the public finances and prevent an end to austerity when he delivers his annual budget next week, a think-tank said.

• German shoppers look keen to spend in November, but their expectations for the economy and their own personal income have slipped on worries about international trade conflicts and Brexit, a survey showed on Friday.

The Nuremberg-based GfK institute said its consumer climate indicator remained unchanged going into November compared with October at an index level of 10.6 points, slightly above a Reuters poll consensus view of 10.5.

• Japanese Prime Minister Shinzo Abe said on Friday that bilateral relations with China are at an “historic turning point”.

Abe, speaking at a forum during his visit to Beijing, said Friday marks the dawn of new Japan-China cooperation and that he expects new possibilities in industries such as infrastructure, logistics, healthcare and finance.

• China and Japan on Friday signed a broad range of agreements on strengthening bilateral ties, pledging to step up cooperation in areas from finance and trade to innovation and securities listings, according to a Reuters witness.

The agreements were signed during Shinzo Abe’s visit to Beijing, the first by a Japanese prime minister in seven years, as Asia’s two biggest economies looked to further build relations and trust against a backdrop of trade friction with the United States.

• Oil prices fell on Friday and were heading for a third weekly loss, as Saudi Arabia warned of oversupply amid a slump in global equities and trade that clouds the outlook for fuel demand.

Brent crude futures LCOc1 were down 49 cents, or 0.6 percent, at $76.40 a barrel by 0649 GMT. The global benchmark is on course for a weekly loss of over 4 percent.

U.S. crude CLc1 was down 59 cents, or 0.9 percent, at $66.74. The U.S. benchmark is set for a 3.5 percent loss this week.

• CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices edged meekly higher but the recovery was ably capped by support-turned-resistance set from early February, now in the 66.87-68.74 area. Renewed selling sees initially targets the64.26-45 area, with a daily close below that exposing April’s swing low at 61.84. Alternatively, a move back above 68.74 paves the way for a retest of the 70.05-26 region. Longer-term technical positioning hints a major top is in the works.


Reference: Reuters, CNBC

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