Tag Archives: Asian Shares

Facebook Earnings: Favourable Performance Expected To Continue

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: NZD Official Cash Rate @ 17.00 GMT

WHAT WE’RE WATCHING TODAY

Facebook Earnings: Favourable Performance Expected To Continue

Facebook’s Q2 2014 results are due today with expectations high considering the company’s performance in recent quarters. Analysts expect a significant year over year jump in ad revenues driven by higher ad pricing and the number of ad impressions. Although Facebook’s user base growth has slowed down, its revenue growth has accelerated on the back of innovation in ad format and delivery. Mobile will remain the focus, with the the mobile platform’s revenue contribution nudging close to 65%. Market watchers will be looking at how the company performs in international markets which is where the most of its incremental growth will come from in the future. Facebook saw 82% growth in its ad revenue during the first quarter of 2014, which was primarily driven by a 118% increase in its average ad pricing. This eclipsed Q4 2013 ad pricing growth of 92%, which is encouraging considering tougher year-over-year comparison. The growing proportion of feed-based ads was the primary reason behind this success.

In the coming quarters, Facebook is likely to focus on improving its monetisation in international markets. The push comes from the fact that despite harbouring most of the world’s population, Asia, Africa and South America haven’t contributed much to Facebook’s revenues suggesting that Facebook has a tremendous opportunity to increase monetisation in international markets.

Europe Shares Set For Lower Open

European shares are geared up for a lower open today after previous gains amid ongoing geopolitical concerns in Gaza and Ukraine. The FTSE is called down 15 points at 6,780 while the German Dax is seen lower by 22 points at 9,712. The European Union failed to announce any tough sanctions against Russia at a meeting on Tuesday. The U.S. was hoping for stricter penalties to be placed on Russia to push the country into cooperating with an international investigation into the downed Malaysian jet and calming the separatists in the eastern part of Ukraine. EU ministers drafted possible sanctions that could stem access to financial services and technology but they failed to put in place broader penalties.

Asian stock markets were mixed today with investors opting to book profits. U.S. stocks rose on Tuesday, lifting the S&P 500 to a record as Wall Street focused on quarterly earnings and fresh data releases.

Apple Beats Expectations On Strong IPhone Sales

Apple reported its second straight quarter of double-digit percentage growth in iPhone sales yesterday as it heads into a major update of its flagship product. The company sold 35.2 million iPhones in the quarter ended June 28, up 12.7% from the 31.2 million units in the year-ago period. The latest figure was just short of analysts’ projections for sales of 35.9 million iPhones. Strong iPhone sales were driven by demand from Brazil, Russia, India, and China with sales in those countries rising 55%, including a 48% increase in China alone. In the past few years, the June quarter has been the slowest for Apple as the company gears up with new products ahead of the year-end. Apple is counting on an expected new product push of larger iPhones and smart-watches before year-end to revitalise earnings that have flattened after more than a decade of remarkable growth, raising concerns that Apple is losing its innovative touch. Apple’s third quarter profit was $7.75 billion, up 12.3% from $6.9 billion in the year-ago period while earnings per share rose to $1.28 from $1.07. Revenue rose 6% to $37.43 billion from $35.32 billion in the same period a year earlier.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ & LinkedIn pages for all the latest news on the days trading activities. We hope you have a profitable day on the markets.

Asian Stocks Extend Gains On Technology Shares

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Asian Stocks Extend Gains On Technology Shares

Asian stocks rose, today as technology shares gained, with the regional index heading for the biggest quarterly rally since September. The MSCI Asia Pacific Index rose 0.4 percent to 145.63 with eight of its ten industry groups advancing. The gauge is headed for a 5.5 percent increase this quarter and a 2.7 percent jump in June for a second month of gains. Data on Chinese manufacturing and the Bank of Japan’s survey on business sentiment are due tomorrow. Japan’s Topix index gained 0.8 percent as the nation’s industrial production expanded 0.5 percent in May from April, when it shrank 2.8 percent, according to a report. The median forecast of economists was for a 0.9 percent increase. The government projects production will decrease 0.7 percent in June and increase 1.5 percent in July.

Gold Close To 2-Month High

Gold held close to a two-month high today on a softer dollar and looks set to post its second straight quarterly gain as geopolitical tensions boosted the metal’s safe-haven appeal. Market watchers were observing U.S. jobs data and the European Central Bank meeting later this week for the outlook on stimulus measures before placing any big bets. The metal has gained 2.4 percent in the second quarter of the year after rising nearly 7 percent in the previous quarter, helped by violence in Ukraine and Iraq. The technical picture for gold looks good with support at $1,300 and resistance at about $1,335 according to one Hong Kong-based precious metals trader.

U.S. To Allow Oil Exports

The Wall Street Journal has reported that the Obama administration is set to lift a four-decade ban on U.S. exports of crude oil. While the initial exports of condensate, light crude oil being pumped from shale fields, will be limited, the market reaction Thursday was quite strong. There were many winners, with the S&P 1500 Composite Oil & Gas Equipment and Services subs-sector rising 3.5% and the Oil & Gas Exploration and Production sub-sector up 2%. The Oil & Gas Refining and Marketing subsector, however, dropped 6%. Refiners had been enjoying soft domestic oil prices, with the continued expansion of domestic production as the export ban continued. Even though the initial exports will be limited, the market is looking ahead to profit pressure for the refiners. The Oil & Gas Refining and Marketing subsector is up 2% this year, while most other oil and gas subsectors have seen double-digit returns driven by production and a rise in oil prices.

That sums up today’s highlights! Remember to keep in touch via our social media channels for all the latest market developments of the day. We hope you have a profitable day on the markets.

RBNZ Expected To Hike Official Cash Rate

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: NZD Official Cash Rate @ 21.00 GMT

WHAT WE’RE WATCHING TODAY

RBNZ Expected To Hike Official Cash Rate

The Reserve Bank of New Zealand is widely expected to lift the official cash rate a further 25 bps when it meets today. However, there is less consensus on the indications the bank may provide about the timing and pace of future hikes. The RBNZ began lifting the OCR from historically low rates in March to the current 3.00% and at the time signaled regular increases at six weekly intervals through September. Since then the balance of factors has shifted. While dairy prices have declined and the pace of gains in house prices has slowed, the exchange rate has remained steady, migration has soared, and economic data have surprised to the upside. The net balance doesn’t change expectations for a hike on Thursday but economists differ on whether this raises the odds of a hold in July and the number of OCR hikes that are likely this year. Expectations range from another 25 basis hike by December, following the likely Thursday hike, to three more hikes that will take the OCR to 4.00%.The money market is expecting a total of two hikes by December. Reserve Bank governor Graeme Wheeler will release the bank’s decision today @ 21.00 hours GMT. The bank’s statement will include an updated set of economic forecasts in the quarterly Monetary Policy Statement.

Euro Under Pressure In Asia As Stocks Sit On Gains

The euro came under fire today as the European Central Bank’s embrace of negative interest rates encouraged flows out of the Eurozone, while Asian shares consolidated near recent highs. In contrast the dollar found support in a run of improving U.S. economic data which has increased speculation that the Federal Reserve might sound less dovish on policy when it meets next week. The euro fell to $1.3524 and further away from a $1.3668 peak scored at the start of the week. It also hit a seven-month trough on the higher-yielding Australian dollar and to near its lowest against the pound since late 2007.Action in equity markets was more muted with many indices already having come a long way. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent from a three-year peak. Japan’s Nikkei edged up 0.3 percent aided by MSCI’s decision to remove South Korea and Taiwan indexes from its review list for reclassification to developed markets, keeping them in the emerging markets classification. Moves were minor on Wall Street with the Dow up 0.02 percent, while the S&P 500 down 0.02 percent.

Google Buying Satellite Company For $500 Million

Google is buying Skybox Imaging, a 5 year old startup, in a deal that could serve as a launching pad for the company to send its own fleet of satellites to take aerial pictures and provide online access to remote areas of the world. The $500 million acquisition will initially provide Google with the means to improve the quality and immediacy of the satellite imagery used in its digital maps. Google plans to use Skybox’s satellite already in orbit to supplement the material that it licenses from more than 1,000 sources, including other satellite companies. Eventually, though, Google hopes to build more satellites that could be used to beam Internet access to points around the world.

That sums up today’s highlights! Check into our Facebook, Twitter and Google+ pages for regular updates on all the tradable events of the day. We hope you have a profitable day on the markets.

UK Retail Sales Show Easter Rebound

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: GBP Retail Sales m/m @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

As UK Retail Sales Show Easter Rebound, Will Carney Reconsider Policy?

UK retail sales is set for release early today. Data from the Confederation of British Industry shows that retail sales bounced back this month after a weak March, helped by sales from a later than usual Easter. With the current economic situation in the UK looking up, an upside surprise could raise expectations of policy tightening, and in turn, the strength of the sterling. Twelve months ago, the International Monetary Fund announced a UK growth forecast of 1.5% for 2014. At the beginning of this month, the IMF revised its estimate to 2.9% in 2014, making the UK the fastest growing economy in the G7. Data releases have compounded improving expectations, with production, trade balance and unemployment data all beating forecasts over the past two to three weeks, and the market is eagerly anticipating a potential near term interest rate hike. The latest MPC meeting minutes dampened these expectations somewhat, but if data continues to impress the BoE would likely have no choice than to consider some sort of policy tightening. For this reason, the market is watching the UK headline releases with a renewed focus.

Asian Shares & U.S. Dollar Struggle As Ukraine Tensions Escalate

Asian stocks struggled today, with fears of an escalating Ukraine crisis overshadowing upbeat U.S. economic data and U.S. tech shares. MSCI’s broadest index of Asia-Pacific shares outside Japan erased early modest gains and fell 0.3 percent. Japan’s Nikkei stock on the other hand, added 0.5 percent in choppy trade, after opening solidly lower amid disappointment over a failed attempt to reach a U.S.-Japan trade pact. On Wall Street overnight, stocks managed to shrug off the rising Ukraine tensions after Apple and Facebook posted upbeat results on Wednesday and U.S. economic data suggested that growth picked up pace in the second quarter. While brighter U.S. stocks and upbeat data supported the greenback, it still fell against a basket of major currencies, with the dollar index edging down to 79.760. But the U.S. dollar took back some lost ground against the yen, adding about 0.1 percent to 102.42 yen, while the euro also rose 0.1 percent against its Japanese counterpart to 141.65 yen. Against the dollar, the euro was steady on the day at $1.3832, despite comments from European Central Bank President Mario Draghi repeating recent concerns about euro strength and the ECB’s willingness to launch a “broad-based asset purchase program” if low inflation become entrenched.

Facebook’s Success In Mobile Continues To Soar

Facebook reported on Wednesday that it had made $2.5 billion in revenue in the previous three months and that it now has almost half the world’s Internet population logging in at least once a month. More than a billion people access the site monthly via mobile devices. The company is also doing better than expected when it comes to making money from mobile ads. For now, at least, its mobile ad business seems immune to the seasonal shifts in its desktop ad sales. The growth of mobile advertising has been explosive. Traders take note!

That sums up Friday’s highlights! Keep up to date with our regular posts on Facebook, Twitter, Google+ & LinkedIn today and over the weekend!

We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Event Of The Day: EUR CPI y/y @ 10.00 GMT

Weekly Event Focus: This week’s German Zew Economic Sentiment report is expected to be the culmination of a series of positive news for the Eurozone and Germany. Growth in the Eurozone exceeded expectations reaching 0.3-0.4 percent in the first quarter. The German economy seems to be carrying the rest of the Eurozone with the strongest rate of job creation in more than two years. This confidence was also reflected in Germany’s composite PMI which reached a 31-month high. This recent data provides encouraging news ahead of the German Zew report and should trigger a rally in the Euro, if the optimism continues.

WHAT WE’RE WATCHING TODAY

Asian Shares Mixed Amid Rising Ukraine Worries

Stocks in Japan and Hong Kong slipped as investors awaited the West’s response to Crimea’s vote to break away from Ukraine and join Russia. Stock markets across Asia Pacific were mixed after the referendum on Sunday in Crimea, amid rising worries over another possible military incursion into Ukraine by Russia. Tensions have weighed on global markets in recent weeks with the possibility of military intervension leading to more risk-averse trading. The yen, which money managers typically buy when global political tensions rise, touched 101.15 per dollar, the strongest the Japanese currency has been since Feb. 5. The euro was at $1.3906, largely unchanged from $1.3912. Some analysts expect the West’s threatened sanctions against Russia would mean financial assets to flow into euro-denominated assets. Japan’s Nikkei lost 0.4%, while Australia’s benchmark S&P ASX 200 shed 0.2% and South Korea’s Kospi gained less than 0.2%. In China, the Hang Seng Index in Hong Kong lost 0.4% and the Shanghai Composite was flat. Stocks had already been uneasy ahead of the Sunday vote, with the S&P 500 index last week logging its biggest weekly loss since January. Headlines are expected to continue to move markets throughout the week according to analysts.

Gold Near Six-Month High On Safe-Haven Bids

Gold was trading near its highest level in over six months on Monday on weaker equities and as Crimea voted to join Russia, heightening tensions between Moscow and the West. Gold has gained 15 percent this year as mounting geopolitical tensions and fears over slowing economic growth spurred demand for the metal seen as a safe-haven asset. Gold was trading at $1,381.34 today after earlier hitting $1,391.76, its highest since Sept. 9. The political environment regarding Ukraine is very supportive of gold prices and it is likely to continue for a while with some analysts anticipating that prices to go all the way to $1,500 in the next few weeks.

Google Working On Electronic Tattoos

Google has announced that it is working on electronic tattoos that will find themselves on the market very soon. The idea behind this new concept is to create an electronic device, involving sensors which is thinner than a sheet of paper and as flexible as a plaster that can stick to the skin. The core benefit is that they become part of the body in a non-invasive, painless and relatively inexpensive way. In addition to sensors, the electronics package can contain wireless networking capability, so they can convey sensor data easily and also be controlled from a remote computer or smartphone. Researchers envision all kinds of medical applications for electronic tattoos, for example, extremely precise thermometers that can track tiny fluctuations in body temperature and set off alarms when the level goes above or below a set threshold. But there are other applications for this idea beyond the doctor’s office. One will be smart clothing; electronics built into clothes. Google’s Android chief, Sundar Pichai used the example of a “smart jacket” when talking about the possibilities of the wearables software development kit he was announcing. The real revolution is flexible electronics - once it arrives, it’s really going to stick!

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: N/A. U.S. markets closed today due to holiday.

Earnings Reports: Coca Cola Co. coming up tomorrow.

WHAT WE’RE WATCHING TODAY

Dollar Falls; U.K. Pound Climbs amid Increasing House Prices

The dollar lost ground against most major rivals on Friday amid mixed U.S. data on industrial production and consumer sentiment. Investors began the year expecting the economy to accelerate, but data has disappointed to the downside, with weather being a key factor. Now investors are pondering over whether to downgrade their expectations or muddle through what could just be a soft patch that eases off in the spring. The currency market’s reaction to data has been muted, given expectations that the indicators won’t impact the Federal Reserve’s decision to wind down its bond-buying stimulus program. Strengthening currencies elsewhere in the world also pushed the dollar weaker whilst other market participants suggested that it was the weak data which had taken on an increased significance in the market, stressing that it’s impossible to ignore the coincidence of U.S. dollar weakness with the sudden slump in top of the line U.S. economic data.

The British pound, meanwhile, reached the highest since November 2009 after a report revealed that U.K. house prices rose the most since October 2012. The report showed that asking prices for U.K homes rose 3.3 percent this month from January, when they gained 1 percent, adding overall to the stronger U.K. story. Analysts say that there is no obvious reason to sell the pound, apart from the fact that it’s probably getting a little stretched on the charts. The pound has surged 1.6 percent in the past week, the most among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar has fallen 1 percent, the biggest decliner.

Asian Shares Rise But Japan Stocks Affected By Disappointing Growth

Asian shares rose on Monday as worries about emerging markets continued to ebb, sucking the safe-haven support out of the U.S. dollar while giving commodities a lift. Several Asian currencies all gained ground as sentiment improved and dealers reported an influx of funds to many emerging markets. The Indonesian rupiah did especially well with the dollar down 4 percent in as many days. The lower dollar in turn tends to be positive for commodities priced in that currency, helping spur gold to a fresh three-month peak at $1,329.55. Japanese stocks, meanwhile, were weighed by the release of disappointing growth numbers. Data showing Japan’s economy grew just 0.3 percent in the fourth quarter of last year, compared with the previous quarter, confounding forecasts of a 0.7 percent gain. The disappointing result will keep pressure on the Bank of Japan to support the economy once an increase in the sales tax goes through in April. The central bank’s latest policy meeting ends on Tuesday and the markets will be keen to see what it makes of the growth figures.

Who’s Winning The Smartphone Wars?

Many believe this is now a two-horse race, but which is the stronger platform? Both have a high degree of momentum but since Android has more manufacturers it has recently become more widely acknowledged for its growth. Apple’s strength is the relationship with developers as well as the piece of hardware that they have put out which is a compelling device that a lot of people want to use. Almost a billion smartphones shipped globally last year, and Google’s Android OS was the big winner except in the U.S., where its share fell by about 2 percentage points and Apple’s iOS gained 6 points. It will be interesting for traders to see how this plays out.

Source: Bloomberg

That sums up today’s highlights! We hope you have a profitable day on the markets.

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