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U.S. Energy Sector Slides in 2017





The energy sector is the stock market's biggest failure so far this year after it showed a stellar performance the previous year, as the rest of 2017 might also be a rough period for investors due to uncertainty. Shares of energy have been weak after surging in mid-December and have been the worst-performing of the S&P 500's 11 stock sectors this year.


Producers of oil have been the weakest among energy sub-industries, due to skepticism regarding the demand outlook as well as the unexpectedly high level of crude and finished product inventories. This year, energy has declined five percent, compared to the six percent increase for the overall S&P 500. However, analysts claim that production firms might be in the best position for gains. Investors have raised their wages on the sector, around $263 million has flowed into U.S.-listed energy mutual and exchange-traded-funds this year through February, according to data from Lipper. The Energy Sector Select SPDR Fund has attracted $400 million of new investment, it said.


Energy surpassed all other sectors in 2016, up by almost 24 percent due to the late-year rally following the election of Donald Trump as U.S. president which fuelled investor hopes for industry-friendly policies. Since the election, refiners have gained over 9.5 percent, while oil producers added less than two percent, the weakest energy sub-sector.


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Fxwirepro: Aussie Marginally Higher Against Major Peers ahead of Rba’s Cash Rate Decision





AUD/NZD is currently trading around 1.0852 marks.


Pair made intraday high at 1.0856 and low at 1.0829 marks.


Intraday bias remains bullish till the time pair holds immediate support at 1.0779 marks.


A daily close below 1.0838 will take the parity down towards key supports around 1.0779, 1.0713, 1.0670, 1.0616, 1.0594, 1.0552, 1.0516, 1.0460, 1.0412 and 1.0370 marks respectively.


On the other side, a sustained close above 1.0838 will drag the parity higher towards key resistances at 1.0976 (January 2016 high) /1.1062 (30D EMA) levels respectively.


RBA will release cash rate decision at 0330 GMT.


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Snap Shares Experience First Slide on Analysts’ Downgrade





Following a strong market debut, Snap Inc. fell for the first time and edged down below the opening price of $24 during its first day of public trading after analysts started expressing their stance regarding the firm's true valuation.


The Snapchat-parent prices shares in its IPO which was warmly received by the market, surging by 44% on their first day of trading due to the strong demand. Its dramatic rally continued on Friday, rising further by 11%.


However, by Monday, majority of the seven analysts who are assigned to Snap had a sell recommendation on the stock, while two adviced to hold. Data showed no analyst stamped the stock with a 'buy' rating.


An analyst at Needham & Co. said the shares were overpriced during its IPO and estimated the firm will see a declining trend in earnings and valuation adjustments in the first two years of its public trading, stating that Snap's value was actually at $19 to $23 per share. A Morningstar Inc. analyst said that the company's monetization capabilities are not as strong as its valuation implies, and priced it at $15.


Snap sank 12 percent to trade at $23.77 at the close of New York trading, bringing down its value to around 28 billion.


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Fxwirepro: South Korean Won Erases Previous Loss Against Euro, Stay Bearish Below 1,211





EUR/KRW is currently trading around 1,212 mark.


Pair made intraday high at 1,214 and low at 1,211 levels.


Intraday bias remains bearish till the time pair holds key resistance at 1,222 mark.


A daily close below 1,213 will drag the parity down towards key supports around 1,206, 1,199, 1,191, 1,184, 1,178 and 1,163 marks respectively.


Alternatively, a sustained close above 1,213 will take the parity higher towards key resistances around 1,222, 1,229, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.


Seoul shares open down 0.09 pct at 2092.27.


Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.


We prefer to take short position in EUR/KRW only below 1,211, stop loss at 1,222 and target of 1,205/1,199.


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Dollar Steady as Focus on U.S. Jobs Report





The dollar stood flat, its modest gain from the previous day, as investors await Friday's U.S. jobs report.


The greenback reached a two-month peak against a basket of peers the previous week as Federal Reserve officials spoke in favor of the probability of an interest rate increase in March. However, the dollar appears to be sitting in a tight range since the hike is highly believed to be a done deal.


The dollar was almost little changed at 113.925 yen after increasing modestly to 114.160 overnight. The euro was relatively flat at $1.0569 after edging down 0.1 percent the day earlier. The dollar index, which notched a two-month high of 102.260 last Thursday, was stable at 101.820. The pound dropped to a seven-week trench the previous day as latest data added pressure on Britain's economy. Sterling was little changed at $1.2202 after slipping 0.3 percent overnight.


The Australian dollar was up 0.1 percent to $0.7592. The Aussie jumped $0.7633 on Tuesday after the central bank held interest rates unchanged. The Swiss franc pulled back to multi-week lows, affected by an increase in the Swiss National Bank's foreign exchange reserves and statements from SNB Chairman Thomas Jordan that the franc was "significantly over-valued."


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China Consumer Prices Rise 0.8% In February





Consumer prices in China were up just 0.8 percent on year in February, the National Bureau of Statistics said on Thursday.


That was well shy of forecasts for an increase of 1.7 percent, and down sharply from 2.5 percent in January.


The bureau also said that producers prices spiked an annual 7.8 percent - exceeding forecasts for 7.7 percent and up from 6.9 percent in the previous month.


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Dow, S&P 500 Extend Declines as Energy Shares Plunge





Wall Street ended mostly lower as investors tackled declining oil prices and assessed the latest employment data. Oil prices plunged over five percent in the aftermath of a much stronger-than-expected increase in U.S. inventories.


The Dow Jones Industrial Average retreated 0.33 percent at 20,855.73, as Caterpillar led losses while Wal-Mart was the top gainer. The S&P 500 dropped 0.23 percent to close at 2,362.98, as energy sectors led seven sectors down while consumer discretionary outperformed. The Nasdaq Composite edged up 0.06 percent to close at 5,837.55.


The energy sector tumbled 2.5 percent, its largest loss since mid-September. Caterpillar was down 2.8 percent following a report from the New York Times which stated that it reviewed a report commissioned by the U.S. government, accusing the company of carrying out tax and accounting fraud. Shares of H&R Block jumped by almost 15 percent for their best day in more than eight years as the firm reported its quarterly results.


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Fxwirepro: Eur/krw Hovers Around Key Resistance at 1,228 Mark, sustained Close Above Targets 1,242





EUR/KRW is currently trading around 1,226 mark.


Pair made intraday high at 1,227 and low at 1,224 levels.


Intraday bias remains neutral till the time pair holds key resistance at 1,228 mark.


A daily close below 1,225 will drag the parity down towards key supports around 1,214, 1,209, 1,199, 1,191, 1,184, 1,178 and 1,163 marks respectively.


Alternatively, a sustained close above 1,225 will take the parity higher towards key resistances around 1,228, 1,233, 1,242, 1,252, 1,268, 1,272, 1,280, 1,287 and 1,304 marks respectively.


Seoul shares open down 0.11 pct at 2088.67.


Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.


South Korea’s January L-money supply growth decrease to 6.8 % vs previous 7.5 %.


We prefer to take short position in EUR/KRW around 1,228, stop loss at 1,242 and target of 1,214/1,209/1,199.


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AirBnB Clinches $1 Billion in Latest Funding Round





AirBnB has managed to raise over $1 billion investment in its latest funding round, according to sources, which was later confirmed via a filing to the U.S. SEC.


The company managed to raise roughly an additional $450 million as part of its series of funding rounds, making the round almost double its original value during the last fall. According to the filing, the total amount came in at $1, 003, 312, 065.


Since its establishment in 2008, AirBnB has raised over $3 billion. The company was last reported to be raising investment fund at around $30 billion valuation. The most recent funding round brings the company's total valuation to around $31 billion.


AirBnB also swung to profit during the second quarter of 2016, according to sources. The company expects to continue being profitable this year.


Sources also reported that the home-sharing start-up firm has no plans to offer its shares on the stock market in the short-term.


The firm did not provide details on how it would utilize the raised money, but it is seen to further grow its operations globally.


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Japan Core Machine Orders Fall 3.2% In January





Core machine orders in Japan slipped a seasonally adjusted 3.2 percent on month in January, the Cabinet Office said on Monday - coming in at 837.9 billion yen.


That missed expectations for a decline of 0.1 percent following the 2.1 percent increase in December.


On a yearly basis, core machine orders tumbled 8.2 percent - again shy of forecasts for a decline of 3.7 percent following the 6.7 percent gain in the previous month.


The total value of machine orders, which includes volatile ones for ships and electric power companies, fell 10.0 percent on month and gained 8.6 percent on year to 2,236.9 billion yen.


Manufacturing orders shed 10.0 percent on month and 22.0 percent on year to 330.9 billion yen in January, while non-manufacturing orders added 0.7 percent on month and 5.7 percent on year to 507.6 billion yen.


Government orders surged 20.4 percent on month and surged 64.1 percent on year to 354.6 billion yen. Orders from overseas gained 3.2 percent on month and 25.9 percent on year to 880.6 billion yen. Orders from agencies dropped 10.4 percent on month and 6.6 percent on year to 108.0 billion yen.


For the first quarter of 2017, core machine orders are forecast to have gained 1.5 percent on quarter and 1.7 percent on year.


Also on Monday, the Bank of Japan said that producer prices were up 0.2 percent on month in February - in line with expectations following the 0.6 percent increase in January.


On a yearly basis, prices advanced 1.0 percent - again matching forecasts and up from 0.5 percent in the previous month.


Export prices were down 0.5 percent on month and up 2.5 percent on year, the bank said, while import prices jumped 0.7 percent on month and 10.1 percent on year.


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