New-home sales in the USA fell in March, which is the latest sign of the market failing to maintain the momentum gained last year. The drop was by 14.5% from February to a seasonally adjusted annual rate of 384,000, the Commerce Department announced today. February's rate was revised up slightly to 449,000. March's figure was the lowest annual pace since July 2013 and was below expectations. The report provides more up-to-date data about the housing market than other indicators, since it registers sales when the contract is signed, not closed. March new-home sales were 13.3% lower than a year earlier, and the median price of a new home reached $290,000, its all-time high, up 11.2% from February. EUR/USD rose 0.2% to 1.3845 after the data.Source: Trading 212
The initial ("flash") Markit PMI for the United States registered a slight drop to 55.4 in April from 55.5 in March, against analysts’ expectations for 56.0. Readings over 50 in the purchasing managers' index indicate growth. The data for new orders and exports improved, and production in April rose fastest since March 2011. Employment was weaker, but sill positive. Long delivery times was the main negative factor. Chris Williamson, chief economist at Markit, considered the report to represent a "solid start to the second quarter."Source: Trading 212
Amazon.com Inc. announced today that it has concluded a deal with HBO to make Prime Instant Video the exclusive online-only subscription home for HBO shows from "The Sopranos" to "Six Feet Under." The first wave of content will arrive on Prime Instant Video on 21 May. The deal’s terms were not disclosed by the two companies. This is the first license granted for HBO programming to an online-only subscription streaming service. Amazon shares rose 1.1% at the opening but then dropped to their previous levels.Source: Trading 212
Procter & Gamble Co.'s fiscal 3rd-quarter net income advanced 2% as the company reduced costs to compensate weak sales of beauty and family products. While, the adjusted earnings of the world's largest consumer product maker topped estimates, revenue missed forecasts. The company reduced its 2014 adjusted earnings projection today and its stock traded down 1.2% in pre-market hours.Source: Trading 212
Canadian retail sales increased 0.5% in February to CAD 41.03 billion, mostly because of higher prices. That means a slowing from a downwardly revised rise of 0.9% in the previous month. January's advance was originally reported at 1.3%. Retail sales volume, which smoothes out price volatility, climbed just 0.1% in February. The soft report suggests retail sales barely contributed to the nation’s economic growth, and reinforces expectations that the Canadian gross domestic product slowed abruptly in the first quarter of the year, largely due to harsh weather. The USD/CAD pair gained 0.2% to 1.1043 after the weak Canadian data.Source: Trading 212
Boeing Co. announced its 1st-quarter profit dipped 13% to $965 million, or $1.28 a share, from $1.11 billion, or $1.44 a share, in the same period a year ago. However, the company’s adjusted earnings per share (EPS) climbed to $1.76 from $1.73 in the same quarter last year, the aircraft maker reported today. Revenue surged to $20.47 billion, from $18.89 billion a year earlier. Analysts had projected adjusted EPS of $1.57 a share on revenue of $20.24 billion. Higher commercial volume had major contribution for the rise in revenue. The company said it sees full-year adjusted earnings in a range between $7.15 and $7.35 a share. Shares of Boeing rose 2.5% in pre-market today.Source: Trading 212
British manufacturers are more confident than at any time in the past 40 years, according to the survey released by the Confederation of British Industry (CBI). That was the latest sign that the economic recovery in the country has continued to pick up recently. The CBI reported the ratio of optimistic companies outweighed pessimistic ones by 33%, which is the highest balance in the quarterly survey since April 1973. The data supports latest signals that a recovery in the British gross domestic product (GDP) has continued in the first quarter of 2014 and is unlikely to decelerate in the near term. The first official measure of nation’s 1st-quarter GDP is due next Tuesday. Nevertheless, the GBP/USD cross fell 0.2% to 1.6780 in the last hours as CBI’s industrial trends survey fell to -1 from +6 in March, well below expectations for a reading of +7.Source: Trading 212
The Bank of England's Monetary Policy Committee (MPC) at its 9 April meeting voted unanimously to maintain interest rates and its GBP 375 billion asset-purchase program unchanged, according to the minutes from the gathering published today. The central bank said the decision was taken within the forward guidance established in August 2013 as the unemployment rate remained above the 7% limit at the time of the MPC meeting. After the policy decision on 9 April, the jobless rate in the UK fell to 6.9% in the quarter to February, likely activating the bank's new guidance for broader scope of indicators than just the unemployment rate.Source: Trading 212
Apple Inc. and Facebook Inc. are scheduled to report their quarterly results after the stock market closes on Wednesday. Analysts estimate Apple will earn $10.19 a share in its fiscal second quarter (Q2), compared with a profit of $10.09 a share in this period last year. Apple’s sales of $43.7 billion are expected to be slightly higher than the $43.6 billion the tech giant posted in last year’s fiscal Q2. Apple itself estimates its sales will be between $42 billion and $44 billion for the period. Facebook Inc. is seen reporting adjusted profit of $0.24 a share – higher than $0.12 a share in the same quarter of 2013. The social network’s revenue is expected to jump 62% to $2.36 billion from $1.46 billion in the year-ago period. Other US companies reporting after market close today are Qualcomm, Texas Instruments and Zynga.Source: Trading 212
Euro-area services and manufacturing output grew faster than forecast in April, indicating the region’s economy continued to strengthen at the start of the second quarter. A composite index based on the PMIs in both sectors climbed to 54 points in April from 53.1 in March, Markit reported today. That beat the median estimate of 53.0 of economists and was the highest figure in nearly 3 years. A print above 50 points means expansion of the sector’s activity. Still, the crisis in Ukraine and the stronger euro are threatening to hurt growth, while Markit’s PMI survey may reinforce policy makers’ deflation concerns as it showed that companies lowered prices for a 25th consecutive month. EUR/USD rose 0.3% to 1.3845 after the positive German data and eurozone’s PMI report.Source: Trading 212
German manufacturing and services advanced more than economists expected in April, adding to signs that the eurozone’s largest economy is supporting the region’s recovery. A survey of purchasing managers surged to 54.2 points from 53.7 in March, Markit Economics announced today. Economists had projected 53.8 points in April, based on the median forecast of economists. A print above 50 points indicates growth. A separate service PMI jumped to 55 from 53 points this month, also exceeding projections. The German central bank has said the economy probably strengthened at the beginning of the year and European Central Bank Governor Mario Draghi predicts an “on-going recovery” for the eurozone. The EUR/USD pair recovered somewhat to 1.3819 after the slump caused by weaker PMIs for France.Source: Trading 212
The EUR/USD pair lost 0.1% to 1.3805 after the PMI gauges for French manufacturing and service sectors came in lower than expected in April. The service PMI fetched 50.3 points, down from 51.5 in March and missing the 51.9 forecast. The manufacturing PMI was at 50.9 points, compared with 52.1 in March and 51.9 expected. The report results are still above the 50-point threshold diving contraction from expansion.Source: Trading 212
Light, sweet crude traded near its lowest level in 2 weeks as a manufacturing PMI signalled a 4th consecutive month of contraction in China, which is the world’s second-biggest oil consumer. May futures were little changed below $102 a barrel during the Asian hours on Wednesday after sliding the most since 2 January yesterday. The flash Purchasing Managers’ Index (PMI) for the Chinese manufacturing sector, released by HSBC Holdings and Markit Economics was at 48.3 points this month, matching the median estimate of analysts. US crude inventories probably surged by 3 million barrels for the 13th time in 14 weeks, a Bloomberg survey predicted before the government data today at 14:30 GMT. Ukraine is mulling resuming military operations to force out rebels from eastern towns as the international deal with Russia to reduce tensions falters.Source: Trading 212
Australian inflation rate slowed in the first last quarter of the year, sending the national currency sharply lower as investors trimmed bets on the likelihood of an interest-rate hike. The nation’s consumer price index (CPI) rose 0.6% in the first quarter from the previous three months, compared with a median estimate for a 0.8% gain. The data may lower speculation that surging house prices in Australia, a looming building boom and declining joblessness would convince the central bank to lift the key rate from the current record-low of 2.5%. The decline of AUD/USD was further boosted by China’s preliminary manufacturing PMI for April published by HSBC and Markit at 48.3 points. The reading is higher than March’s final print of 48 points but is still below the expansion-contraction threshold of 50 points. The AUD/USD pair lost a total of 1.1% to 0.9272 during the Asian session.Source: Trading 212
• The preliminary manufacturing and services PMIs for the eurozone countries will be published today before noon. All the indicators are expected to stay above the critical level of 50 points in April. Readings above 50 points indicate the sectors are expanding. Better values, of course, would support the single currency.
• At 8:30 GMT the Bank of England will publish the minutes from its April policy meeting. Economists expect that all nine members of the BOE’s Monetary Policy Committee have voted unanimously to keep both the interest rate and the stimulus program unchanged. Usually, the British pound is very volatile during the announcement.
• At 12:30 GMT the Canadian Retail Sales will be announced. They are expected to increase 0.4% in February from the 1.3% jump in the previous month. A bigger increase in the total value of the retail sales would support the Canadian dollar.
• At 14:00 GMT, the US New Home Sales will be released. Analysts expect the index to climb 2.3% to an annual level of 0.450 million in March from 0.440 million in the previous month. The sales of new homes are an important indicator for the state of the US housing market and better-than-expected results would support the US currency.