Thread: Company News by ForexMart

EU Exporters Could End Up Paying Higher Tariffs to EU Than Vice Versa

EU enterprise exporting goods would pay higher tariff to Uk compared to the other way around. Around £12.9 billion are to be paid by EU enterprises just on tariffs alone after UK leaving EU and should Britain come in terms with the World Trade Organization. In exchange, UK enterprise exporters has to pay around £5.2 billion for tariff in a year. This implies the significance for both parties to settle their post-Brexit trade deal. A study has been conducted showing 22 out of 27 EU members are found out to pay higher tariffs regarding exports to UK.

Additionally, the act of Belgium to not agree regarding the Comprehensive Economic and Trade Agreement (Ceta) between EU and Canada which has been an issue recently. Nevertheless, a representative of the campaign, Chris Grayling, said that this would not be a hindrance to settle an agreement with the British trade deal with EU.

China Reassures Investors to Impede a Six-year Low


Chinese Yuan is depreciating nearing a record low in six years. The government is finding ways to hinder the process and recover from this impending threat. However, the deputy Governor of People’s Bank of China (PBOC) said that there is no grounds for a relentless decline and they stopped it from happening.


China is giving off signs that the currency is being carefully monitored and investors should be careful in their trading positions against the currency. Despite this information, this would have much of an impact considering past connotations to the problem since the driving force is the appreciation of dollar.


The PBOC is saying if volatility arises, investors should not be agitated as they would definitely do something to stabilize the situation. China has already eased the local bonds and abandoned the necessity for inbound investment program quotas.

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Demand for Manufactured Capital Goods Weakened


The manufactured capital goods from America fell by 1.2% in September despite three consecutive months of gains. The demand for computers and other electronic products slowed down which is expected to affect business spending in the last quarter of the year.


Demand for new heavy machineries has been reduced because of the predominance of used construction equipments while the demand for transportation equipments declined by 0.8% that impelled durable goods lower by 0.1%. On the other hand, orders for electrical equipments and machineries including appliances has risen last month. However, this may shift course to a better predicament since the dollar appreciated as well as the oil and gas drilling activity has improved in the past months.

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Inflation Rate is Expected to Soar in 2017




The inflation rate is said to increase up to 4% in the second half if 2017. It is even higher than the forecast last August but the Bank of England is expected to further increase the rates. Although, there are obstacles in the economy that limits the growth.




The Consumer Price Index grew by 1% in September even higher than 0.6% increase in August, This has been the highest rate for almost two years caused by the higher costs of clothing, oil and hotel and is expected to increase the consumer prices in the next months to come that would only be transient. The last CPI inflation was back in 2011 that increased up to 4%. In effect, households will undergo changes in their standard of living which is worsen by the fall of pound. Moreover, this would suppress the consumer purchasing power.

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Gold, CHF Surges, Stocks Drop amid Heightened US Election Anxiety


The stock market plummeted to its lowest levels since July, while the CHF surged along with gold prices due to an increase in market anxiety with only a week left before the US presidential election commences. As Trump edged past Clinton in the presidential polls, the prices of equities experienced a selloff with regards to high-risk assets, while the Mexican Peso (MXN) caused massive losses among the major currencies, especially since this particular currency is now seen as a gauge for the market’s sentiment with regards to the results of the elections. Safe haven currencies such as the CHF and JPY surged after traders sought to avoid high-risk investments. Treasuries held fast to its gains, while gold prices increased and reached its highest levels in over a month.

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Rise in U.S. Employment Growth Impact on Fed’s Next Rate Hike


The employment rate in US has a significant increase that would finalize the decision for the December rate hike from Federal Reserve. Nonfarm payrolls also added 175,000 jobs in the month of October higher than the 156,000 jobs in September. It is predicted that the unemployment rate will decline by one-tenth of a percentage point to 4.9%. The Labor Department will release its employment report this Friday morning.


Though the US central bank is expected to implement a rate hike this december, the results of the U.S. Presidential election will still have a weigh on the decision. On Wednesday, Fed announced that the interest rates will not be changed but there is higher probability for the next rate hike.

The current contest has already started on November 14, 2016 and will end on November 18, 2016.


You can register for the next competition which will take place from November 21, 2016 to November 25, 2016.


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Greenback continues to surge with the unexpected win of Trump that signals inflation to take place sometime in the future. It climbed as high as 99.247 on Monday during Asian session from 97 handle prior to election. His principles advocated during his campaign such as protectionism, changes in immigration, infrastructures and debt spending set inflation back to the market at the same time, this would cause the U.S. Dollars to further appreciate in value. The U.S. 10-year Treasury yield rose more than 2 percent from 1.80 percent before election. This surge is expected to continue with short-term trend moves up, it is anticipated for U.S. Dollars to get stronger.


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The Japan's economy have seen greater improvement from the month of July until September due to a higher number of international trades. The country's GDP escalated to 2.2% within three months. Japan is greatly concern about the anti-free trade rhetoric supported by the newly-elect US President D. Trump since it is expected that this campaign would bother the Japanese region.


Subsequent to the results of the U.S elections, the yen curtailed versus the dollar. Hence, the country's good became cheaper in abroad, this brought positive talks for the foreign exporters. The world's third-largest economy accumulated a better-than- expected result of 0.5% while the forecast showed 0.2% only. However, some analysts who stated that the nation is relying much on exports and considered that these are windfalls only.


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