Stocks, peso weaken on Trump fears

The local stock market tumbled sharply Wednesday, tracking a global financial market bloodbath as investors braced for a Donald Trump presidency in America.

The Philippine Stock Exchange index (PSEi) shed 188.76 points or 2.58 percent to close at 7,119.04 as Trump’s poll victory shocked global markets.

One stock that benefited from news of Trump’s poll victory was Century Properties Group, which surged by 20 percent. The company has a branding deal with Trump for a $150-million upscale residential project. Ahead of the US elections, President Duterte named company chair and founder Jose Antonio special envoy to the US.

The peso slightly slid against the dollar alongside weakness across regional currencies following Trump’s win, which the Bangko Sentral ng Pilipinas said could be a “global political risk.”

The domestic currency weakened to close at 48.59 to $1 from Tuesday’s close of 48.58:$1, staying at a seven-year low level.

At the Philippine Dealing System, the peso hit an intraday low of 48.85 against the dollar and a high of 48.57 after opening at 48.62. The total volume traded rose to $691.9 million from Tuesday’s $549.6 million.

“Regional currencies including the peso fell on renewed risk aversion surrounding market surprise in early results showing a Trump victory,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters.

Also, “market cautiousness on a possible retreat of the Fed from a December hike because of this market reaction is weighing on regional currencies,” Tetangco added.

“We will continue to closely monitor developments and provide liquidity to the market as needed to address market price action on renewed global political risk,” according to Tetangco.

“The (stock) market lost 2.5 percent in line with the region as Donald Trump’s apparent election victory was met with concern by investors. The main worry seems to be his ‘America first’ rhetoric, which is viewed by many as anti-trade,” said Manny Lisbona, president of PNB Securities.

Lisbona said the silver lining, however, was that the odds of a rate increase in December had declined to 50 percent from 82 percent, based on some news reports.

“Local markets sold off furiously as the Republican candidate seems destined for an upset victory as of 3:30 pm. The PSEi took its cues from performances of Asian bourses as well as the futures market, wherein the Dow (futures) slid as much as 860 points,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

“Trump has promised a big change in the corporate sector and huge capital spending via infrastructure, leading to hiring and wage pressure. Massive tax cut is also promised. Foreign policy skill, which is clearly lacking, will be a test to the new administration. We can expect immediate flight to safety with gold and US treasuries being bid up,” Limlingan said.

The PSEi was led lower by the property counter, which fell by 3.47 percent, while the industrial and holding firms counter slipped by more than 2 percent. The services and financial counters fell by over 1 percent. Only the mining/oil counter rose, but by just 0.15 percent, as gold mining firms Lepanto and Philex advanced. Gold is deemed a good hedge against global economic uncertainties.

Investors dumped shares of URC (-6.76 percent) and ICTSI (-5.26 percent), two Philippine companies with sizable overseas businesses.

Ayala Land, Ayala Corp. and Megaword all fell by more than 4 percent while Metrobank, GT Capital and Jollibee all slid by more than 3 percent.

SM Prime, SM Investments Corp. and Metro Pacific Investments all slid by more than 2 percent while BDO and JG Summit declined by over 1 percent.

source: business.inquirer.net

Asian stocks lower on renewed worries about banking sector

SEOUL, South Korea—Asian stock markets were lower on Friday as investor sentiment was dented by overnight losses on Wall Street and renewed worries about the health of Deutsche Bank.

KEEPING SCORE: Japan’s Nikkei 225 slumped 1.5 percent to 16,449.84 and South Korea’s Kospi fell 1.1 percent to 2,045.43. Hong Kong’s Hang Seng index sank 1.7 percent to 23,334.07. Australia’s S&P/ASX 200 dropped 0.7 percent to 5,435.90. China’s Shanghai Composite Index was up 0.3 percent to 3,005.86. Stocks in Singapore and other Southeast Asian countries were also lower.

ANALYST’S TAKE: “Risk sentiment waned overnight as worries about global banks weighed on markets,” said Alex Wijaya, senior sales trader at CMC Markets in Singapore. “Stock markets worldwide are rattled by the latest development at Deutsche Bank.”

BANK WOES: US authorities are seeking $14 billion from Deutsche Bank to settle legal claims over its sales of mortgage securities in 2007 and 2008, which helped kick off a global financial crisis. The bank said it had struck a deal to sell a subsidiary and stressed that it was not seeking government help but investors are worried what will happen to Germany’s biggest lender and to the broader financial system if Deutsche Bank runs low on capital. Analysts said the troubles at Deutsche Bank are raising scrutiny over other banks in Europe, which are also in talks regarding mortgage settlement with the US authorities.

CHINA OUTPUT: The Caixin monthly purchasing managers’ index, which is closely watched for insights into China’s economy, ticked up to 50.1 for September from the previous month’s 50.0 reading. The tiny expansion in activity and gains in overall new orders for the third straight month offered a glimmer of hope for the world’s second-largest economy that has been grappling with a prolonged slowdown. But the private survey result was not strong enough to relieve investors outside China.

WALL STREET: US stocks finished lower on Thursday as drug companies and banks absorbed large losses. The Dow Jones industrial average lost 195.79 points, or 1.1 percent, to 18,143.45. The Standard & Poor’s 500 index sank 20.24 points, or 0.9 percent, to 2,151.13. The Nasdaq composite dropped 49.39 points, or 0.9 percent, to 5,269.15.

OIL: Benchmark US crude lost 54 cents to $47.29 per barrel in New York. The contract gained 78 cents, or 1.7 percent, to close at $47.83 a barrel on Thursday. Oil prices surged earlier this week after the nations of OPEC, which collectively produce more than third of the world’s oil, agreed to a small cut in production in a surprise decision Brent crude, the international benchmark, fell 67 cents to $49.14 a barrel in London.

CURRENCIES: The dollar fell to 100.93 yen from 101.16 yen while the euro fell to $1.121 from $1.122./rga

source: business.inquirer.net

Pound slumps against euro, dollar

NEW YORK, United States — The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy.

At 86.80 pence on the euro, the pound was at its weakest level since August 2013.

Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback.

The currency’s fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy.

The rental data came on the heels of numbers showing home prices fell for the second straight month.

“In the month of August, the British pound has been the weakest currency and the trend continued today,” said Kathy Lien of BK Asset Management.

“The main reason why the currency is weak is because investors are worried about this week’s UK economic reports.”

Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, “the damage has been done and consequences are just beginning to appear.”

source: business.inquirer.net

Asia stocks advance ahead of Bank of England policy decision

SEOUL, South Korea — Asian stock markets were higher Thursday ahead of the Bank of England’s upcoming announcement of its monetary policy decision.

KEEPING SCORE: After trading lower in the morning session, Japan’s Nikkei 225 finished 1.1 percent higher at 16,254.89. South Korea’s Kospi added 0.3 percent to 2,000.03 and Hong Kong’s Hang Seng index added 0.6 percent to 21,872.54. China’s Shanghai Composite Index edged up 0.1 percent to 2,982.43. Stocks in Taiwan, Singapore, Indonesia and other Southeast Asian markets were higher.

UK WATCH: Bank of England is widely expected to unveil stimulus measures including a rate cut when it announces its monetary policy decision later Thursday after Asian markets close. Some analysts also expect the bank will announce the creation of billions in new money as early indicators since the U.K. referendum to leave the European Union suggest that the economy is contracting at its sharpest rate since 2009. Analysts expected increased volatility in the foreign exchange market ahead of the decision.

ANALYST’S TAKE: “The question is, not so much, if the BoE will ease policy, but rather how the BoE will choose to deliver policy easing,” Mizuho Bank wrote in a daily commentary. If the bank’s decision falls short of market expectations, “there is a risk of markets being disappointed.”

WALL STREET: U.S. stocks edged higher on Wednesday as the big gains in the price of oil boosted energy companies. The Dow Jones industrial average broke a seven-day losing streak and added 0.2 percent to 18,355. The Standard & Poor’s 500 index gained 0.3 percent to 2,163.79. The Nasdaq composite rose 0.4 percent to 5,159.74.

OIL: Benchmark U.S. crude stayed flat at $40.83 per barrel in New York. The contract jumped $1.32, or 3.3 percent, to close at $40.83 on Wednesday after the U.S. government said stockpiles of gasoline shrank by more than 3 million barrels last week. Brent crude, which is used to price international oils, dropped 21 cents to $42.89 a barrel in London.

CURRENCIES: The dollar strengthened to 101.36 yen from 101.28 yen while the euro fell to $1.1134 from $1.1148.

source: business.inquirer.net

Stocks up on hope of UK stimulus, eurozone Brexit resilience

LONDON — Stock markets turned higher on Friday after surveys suggested the eurozone economy is proving resilient to the uncertainty surrounding Britain’s Brexit vote. A big drop in business activity in the U.K. raised expectations of more central bank stimulus there.

KEEPING SCORE: Britain’s FTSE 100 rose 0.4 percent to 6,728 and Germany’s DAX was up 0.1 percent to 10,163. France’s CAC 40 gained 0.3 percent to 4,388. U.S. futures indicate a positive opening on Wall Street. Dow and S&P futures were both up 0.2 percent.

BREXIT IMPACT: A survey of services and manufacturing in the 19-country eurozone declined only modestly in July, suggesting the currency bloc has not suffered much damage so far from Britain’s vote to leave the European Union. The contrary was found in an equivalent survey of business activity in Britain, which indicated the country’s economy was shrinking at its fastest pace since early 2009.

ANALYSTS’ VIEW: Edoardo Campanella, economist at UniCredit, said that while the Brexit vote may yet affect the eurozone with some time lag, Friday’s report is “consistent with our view that most of the economic damages will be concentrated in the U.K.”

Britain’s survey, on the other hand, was “truly horrible,” according to Howard Archer, economist at IHS Global Insight. It “boosts the case for the Bank of England to come up with a substantial package of measures at its Aug. 4 meeting.”

ASIA’S DAY: Earlier, Japan’s Nikkei 225 fell 1.1 percent to 16,627.25 after the Bank of Japan governor, Haruhiko Kuroda, was cited ruling out direct cash injections to the economy. Hong Kong’s Hang Seng index shed 0.2 percent to 21,964.27. China’s Shanghai Composite Index lost 0.9 percent at 3,012.82. Australia’s S&P ASX 200 slipped 0.3 percent to 5,498.20. South Korea’s KOSPI edged down 0.1 percent at 2,010.34. Southeast Asian markets were down.

OIL: U.S. crude shed 6 cents to $44.69 in New York. On Thursday, it sank $1. Brent crude, the global benchmark, rose 4 cents to $46.24, after falling 97 cents on Thursday.

CURRENCIES: The pound plunged against the dollar on the prospect of more stimulus from the Bank of England. It was down 1 percent at $1.3104, from $1.3280 the previous day. The dollar rose to 106.08 yen from 105.76 and the euro fell to $1.1017 from $1.1027. TVJ

source: business.inquirer.net

Stocks down slightly after 5-day winning streak

NEW YORK — Stocks are falling slightly in morning trading Friday as the market breaks a five-day winning streak that sent major indexes to fresh highs. Bond yields climbed. Technology and consumer discretionary stocks are dropping the most.

KEEPING SCORE: The Dow Jones industrial average fell 2 points, or less than 0.1 percent, to 18,504 at 11:32 a.m. Eastern time. The Standard & Poor’s 500 index lost 3 points, or 0.2 percent, to 2,161. The Nasdaq composite fell 6 points, or 0.1 percent, to 5,028.

THE QUOTE: After the recent gains, “you have to be concerned. Are we going to see more slowing of the global economy?” said Bill Stone, chief investment officer at PNC Asset Management. “What is going to be the real impact of Brexit?”

SUPPLEMENT SURGE: Herbalife rose $9.21, or nearly 16 percent, to $68.57 after The Federal Trade Commission decided not to classify the nutritional supplements company as a pyramid scheme, as was alleged by investor Bill Ackman. The company did agreed, however, to pay $200 million to resolve allegations that it deceived consumers.

BANK BLUES: Wells Fargo fell $1.21, or 2.5 percent, to $47.73 after the consumer banking giant reported that second-quarter earnings fell.

INFLATION CHECK: The Labor Department reported consumer prices rose a modest 1 percent in June from a year ago, well below the Federal Reserve’s 2 percent inflation target. The Fed, which meets July 26-27, wants to see evidence that inflation is ticking up before raising interest rates.

SHOPPING MORE: The Commerce Department reported that U.S. retail sales rose a robust 2.7 percent in June from a year earlier. Consumer spending accounts for about two-third of economic output in the U.S., much higher than in many other developed countries.

ATTACK IN FRANCE: Trading was subdued in Europe after a man drove a truck into crowds celebrating Bastille Day along the beachfront of Nice, killing at least 84 people.

EUROPE SLIPS: France’s CAC-40 was down 0.6 percent while Germany’s DAX fell 0.2 percent. Britain’s FTSE 100 was flat.

TRAVEL SLUMP: Travel-related stocks fell in the wake of the attack. Cruise operator Royal Caribbean fell $1.26, or 1.8 percent, to $70.63 and Delta Air Lines fell 97 cents, or 2.4 percent, to $40.01.

CHINA GROWTH: The Chinese government says its economy expanded at a steady 6.7 percent in the April-June period as spending on construction by state-owned companies in the world’s second-largest economy helped compensate for weak private sector demand.

ASIA’S DAY: Japan’s Nikkei 225 rose 0.7 percent. The Hang Seng index in Hong Kong climbed 0.5 percent and South Korea’s Kospi index added 0.4 percent.

BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.59 percent from 1.54 percent. The euro fell to $1.1076 from $1.1123 and the dollar rose to 105.93 yen from 105.43 yen.

ENERGY: Benchmark U.S. crude rose 38 cents to $46.06 a barrel in New York, while Brent crude, a standard for international oil prices, rose 44 cents to $47.81 a barrel in London. TVJ

source: business.inquirer.net

World stocks up as Britain leans towards EU remain vote

HONG KONG — Asia led a rally in global markets Monday, building on gains at the end of last week as polls suggest Britain’s upcoming referendum will result in the country staying in the European Union.

The average of the last six British European Union referendum polls put the Remain and Leave camps neck-and-neck at 50-50, excluding undecided voters, according to the What UK Thinks website.

Markets across Asia and Europe slid early last week as polls showed the Leave side a few percentage points for the June 23 vote, but showed some improvement Friday as the Remain camp gained ground.

The upswing comes after the International Monetary Fund warned that a Brexit vote could deal a “negative and substantial” blow to the British economy, adding that the “contagion effects” of a vote to leave the bloc could hit markets worldwide.

Tokyo closed up 2.34 percent, adding to gains of one percent at the end of last week to finish at 15,965.30. Hong Kong was up 1.69 percent by close, its steepest gain in two weeks.

After ending the morning slightly down, Shanghai eked out gains to close 0.13 percent, or 3.70 points, up at 2,888.81. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 0.44 percent.

European markets rose strongly at the start of trading with London’s benchmark FTSE 100 index jumping 2.10 percent, and Frankfurt and Paris up 2.30 and 2.60 percent respectively.

Gold was down 0.38 percent Monday, having hit a near two-year peak on Friday as investors sought the commodity on fears of the impact of a “leave” vote on the world economy.

‘Risk-on move’

The yen, often seen as a safe haven, eased slightly to 104.56 to the dollar in afternoon trade in Tokyo, from 104.19 yen in New York Friday as the “Stay” camp appeared to gain strength in the polls.

“We are seeing a risk-on move after the latest Brexit poll,” Niv Dagan, executive director at Peak Asset Management LLC in Melbourne, told Bloomberg.

“It may be short-lived and volatility is likely to remain high until Thursday’s vote. This really could still go either way.”

Oil prices extended gains on a weaker dollar, driving up demand for the commodity.

US benchmark West Texas Intermediate for July delivery was up 77 cents to $48.75 a barrel, while international benchmark North Sea Brent for August delivery was up 90 cents, trading at $50.07 a barrel.

Key figures around 0830 GMT

Tokyo – Nikkei 225: UP 2.34 percent at 15,965.30 (close)

Shanghai – Composite: UP 0.13 percent at 2,888.81 (close)

Hong Kong – Hang Seng: UP 1.69 percent at 20510.20 (close)

Euro/dollar: UP at $1.1342 from $1.1280 late Friday

Pound/dollar: UP at $1.4623 from $1.4348

Dollar/yen: UP at 104.56 yen from 104.19 yen

New York – DOW: DOWN 0.33 percent at 17,675.16 (close)

London – FTSE 100: UP 2.10 percent at 6,147.48

source: business.inquirer.net

Global shares mixed after Wall Street slump, oil price rally

KUALA LUMPUR, Malaysia — European stocks were mostly higher Thursday while Asian shares were mixed after a weak session on Wall Street. Tokyo shares rebounded after a weak start as the yen weakened against the U.S. dollar.

KEEPING SCORE: France’s CAC 40 rose 0.2 percent at 4,325.09 and Germany’s DAX gained 0.1 percent to 9,986.52. Britain’s FTSE 100 was nearly flat at 6,158.38. Dow and S&P 500 futures rose 0.4, suggesting a positive start for Thursday trading.

BRITISH FACTOR: A raft of data is due out later Thursday

and traders are watching for further clues on monetary policy from a speech by Bank of England Governor Mark Carney, especially in light of Britain’s referendum on continued EU membership due next month.

TOYOTA PROFIT: Shares in Toyota Motor Corp. fell 1.4 percent after a 6.1 percent drop overnight in New York. On Wednesday, the company projected a 35 percent plunge in profit for the fiscal year through March 2017 as the perks of a favorable exchange rate fade, and it reported a 4 percent drop in profit for January-March on-year. Other exporters can expect similar woes thanks to the yen’s recent gains against the U.S. dollar.

OIL PRICES: Already trading at its highest price in six months, benchmark U.S. crude rose overnight after the government reported a surprise decline of 3.4 million barrels in supplies for last week and a 6 percent reduction in U.S. oil output. U.S. oil gained 1 cent to $46.24 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.57, or 3.5 percent, to $46.23 a barrel on Wednesday. Brent crude, the international benchmark, gained 5 cents to $47.65 a barrel. It had jumped $2.08, or 4.6 percent, to $47.60 a barrel in London.

ANALYST VIEWPOINT: “Commodity stocks are among the few positive movers today, following a major oil rally on the back of U.S. evidence consumption is eating into the historically high stock piles of crude,” Michael McCarthy of CMC Markets said in a commentary. “This better demand picture combined with a slightly weaker USD makes energy and materials the sectors du jour.”

ASIA’s DAY: Japan’s Nikkei 225 stock index rose 0.4 percent to 16,646.34, while the Hang Seng index of Hong Kong dropped 0.7 percent to 19,915.46. South Korea’s Kospi lost 0.1 percent to 1,977.49 and Australia’s S&P/ASX 200 fell 0.2 percent to 5,359.30. Taiwan fell but most benchmarks in Southeast Asia rose.

CURRENCIES: The dollar rose to 108.99 yen from 108.40 in the previous session. The euro slipped to $1.1413 from $1.1424. The yen-dollar rate has “slipped back down to 108 levels, as a short-squeeze in the early week abated with no more official talk of intervention yesterday, while markets are also doubting if Japan would intervene in advance of the G7 summit,” Mizuho Bank Ltd. (Singapore branch) said in a commentary. TVJ

source: business.inquirer.net

Global stocks surge as investors welcome Fed assurance

MANILA, Philippines — Global stocks surged Wednesday as investors welcomed the latest signal from the U.S. Federal Reserve that it will move slowly to raise interest rates. Japan’s Nikkei 225 bucked the trend and closed lower.

KEEPING SCORE: Britain’s FTSE 100 rose 1.4 percent in early trading to 6,193.27. Germany’s DAX climbed 1.4 percent to 10,024.07, while France’s CAC 40 gained 1.4 percent to 4,429.74. U.S. futures augured a positive opening on Wall Street, with Dow futures up 0.5 percent to 17,628 and S&P futures rising 0.5 percent to 2,057.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 1.3 percent, closing at 16,878.96, on the continuing strong yen and the trade ministry’s announcement of a 6.2 percent month-on-month drop in industrial production in February. Hong Kong’s Hang Seng index climbed 2.2 percent to 20,803.39. China’s Shanghai Composite surged 2.8 percent to 3,000.65, while South Korea’s KOSPI rose 0.4 percent to 2,002.14. Australia’s S&P ASX 200 was up 0.1 percent at 5,010.30. Southeast Asian markets also rose.

ASIA’S ECONOMY: Softer growth prospects for China and a weak recovery in major industrial economies are expected to push down economic growth in developing Asia to 5.7 percent in 2016 and 2017, below previous projections, according to an Asian Development Bank report released Wednesday. The region’s economy grew 5.9 percent in 2015. The Asian Development Outlook 2016 said China’s economic growth is seen moderating to 6.5 percent this year from 6.9 percent last year and to 6.3 percent next year. Slower exports, a falling labor supply and supply-side reforms are reshaping the world’s second-largest economy toward more domestic consumption and a further reduction in excess industrial capacity, it said.

THE QUOTE: “September is now the only date the markets are pricing with a better than 50 percent probability of a (U.S.) rate hike,” said IG market analyst Angus Nicholson. “A weaker U.S. dollar not only benefits the dollar-denominated price of many commodities, which are a key export for most emerging markets, but it also lowers the burden of U.S. dollar-denominated debt in a range of emerging markets.”

ENERGY: Benchmark U.S. crude gained 71 cents, rising to $39.00 a barrel in electronic trading on the New York Mercantile Exchange. The contract shed $1.11, or 2.8 percent, to $38.28 a barrel on Tuesday. Brent crude, used to price international oils, was up 60 cents at $40.45 a barrel in London.

CURRENCIES: The dollar declined to 112.23 yen from 112.77 yen. The euro rose to $1.1315 from $1.1287. TVJ

source: business.inquirer.net

Global stocks decline ahead of Fed meeting

BEIJING — Global stocks declined Wednesday as investors awaited this week’s U.S. Federal Reserve meeting, expecting possible insights into the state of global growth and future Fed moves.

KEEPING SCORE: In early trading, Britain’s FTSE 100 fell 0.6 percent to 6,136.50, France’s CAC-40 fell 0.5 percent to 4,482.50 and Germany’s DAX shed 0.4 percent to 9,945.74. On Monday, the DAX rose 1.4 percent and the CAC-40 and FTSE both added 0.4 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor’s 500 index both declined 0.4 percent.

ASIA’S DAY: Tokyo’s Nikkei 225 lost 0.7 percent to 17,117.07 and Hong Kong’s Hang Seng declined 0.7 percent to 20,288.77. Sydney’s S&P ASX 200 fell 1.4 percent to 5,111.40 and India’s Sensex retreated 0.9 percent to 24,580.54. Seoul’s Kospi was off 0.1 percent at 1,969.97 and Taiwan, Singapore, Bangkok and Jakarta also fell. The Shanghai Composite Index gained 0.2 percent to 2,864.37 and New Zealand also rose.

WATCHING THE FED: The Federal Reserve’s Federal Open Market Committee meets Tuesday and Wednesday. Investors don’t expect a rate hike but are watching for indications of possible future Fed moves. In December the Fed raised interest rates for the first time in almost a decade, but it left them unchanged in January.

ANALYST’S TAKE: “The most anticipated item on the U.S. economic calendar this week is the FOMC meeting, even though policy will almost certainly be left on hold. With no change in rates, the focus will be entirely on forward guidance,” said Jim O’Sullivan of High-Frequency Economics in a report.

JAPAN CENTRAL BANK: The Bank of Japan left its monetary policy unchanged Tuesday but downgraded its assessment of conditions in the world’s third-largest economy, citing risks from weaker growth in China and other emerging economies and volatility in financial markets, among other factors.

CURRENCY: The dollar slipped to 112.99 from 113.79 yen. The euro edged up to $1.1108 from Monday’s $1.1105.

ENERGY: Benchmark U.S. crude shed 82 cents to $36.36 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.32 on Monday to close at $37.18. Brent crude, used to price international oils, lost 84 cents to $38.69 per barrel in London. On Monday, the contract declined 86 cents to $39.53. TVJ

source: business.inquirer.net

China grapples with contradictions over currency

BEIJING, China — China is struggling to reconcile its push for economic reforms and a freely traded currency with curbing massive outflows of capital sparked by worries over its slowing economy — and a lack of communication is fueling fear.

The thorny problem represents the so-called “impossible trinity”, as China’s ruling Communist Party seeks to control the exchange rate and monetary policy, while at the same time moving to freer capital flows, analysts said.

Around $1.0 trillion left China last year, according to Bloomberg Intelligence. In December alone capital outflow from the country was nearly $160 billion, it said.

The cash hemorrhage reflects growing concern about the economy against a backdrop of volatility in the stock and currency markets, which has led both investors and savers to shed their yuan, also known as the renminbi (RMB).

“The recent flood of capital leaving China has been driven primarily by increased skepticism that the People’s Bank (the central bank) will hold to its pledge to keep the renminbi stable,” said Mark Williams, chief Asia economist at Capital Economics.

At the recent World Economic Forum in Davos, billionaire investor George Soros told Bloomberg TV that the world’s second largest economy, where growth has already slowed to a 25-year low, was heading for more trouble.

“A hard landing is practically unavoidable,” he said, pointing to deflation and excessive debt as a reason for China’s slowdown.

His remarks angered the Chinese media, which accused him of “declaring war” on the currency.

Soros — whose enormous trades are still blamed in some countries for contributing to the Asian financial crisis of 1997 — in the 1990s led speculators in bets against the Bank of England, which unsuccessfully sought to defend the pound’s exchange rate peg.

No policy to devalue
The yuan has retreated against the dollar by 1.3 percent since the start of January, having already slid more than 4.5 percent against the greenback in 2015.

Beijing keeps a grip on currency flows and the yuan can only move up or down against the dollar by two percent daily from a mid-rate set by the People’s Bank of China (PBoC), the central bank.

But after a surprise devaluation last August — a move intended to bring it closer to its market value according to Beijing — the yuan is being dragged down by the vast outflows of capital.

Chinese citizens are allowed to convert the equivalent of $50,000 from the domestic currency under an annual quota, though many seek ways to evade the barrier. A popular method is borrowing the quota of other people, such as family members.

When the PBoC in mid-December signaled a change in the way it manages the yuan’s value by measuring the unit against a basket of currencies instead of pegging it to the dollar, the move increased the level of anxiety.

Bank of America Merrill Lynch said the lack of “clear and transparent” rules for the basket led to confusion in the market. At the same time, the decision by the US Federal Reserve to raise interest rates has put downward pressure on the yuan.

Chinese officials deny plans to devalue the currency, amid fears Beijing is seeking a currency war to help boost its flagging exports.

“The fluctuations in the currency market are a result of market forces and the Chinese government has no intention and no policy to devalue its currency,” Vice President Li Yuanchao told Bloomberg.

But Beijing faces a dilemma, he said. On the one hand, China wants to expand use of the yuan internationally. At the same time, the government needs to ensure the unit remains stable.

Declining reserves

To keep its currency steady, China has been diving into its foreign exchange reserves — already the world’s largest — to buy massive amounts of yuan.

But it is a bitter pill to swallow. China’s foreign exchange reserves fell $108 billion in December — the biggest monthly decline on record — to $3.3 trillion.

“The PBoC has enough reserves to keep selling at December’s rate until mid-2018 but it would presumably throw in the towel before they were all exhausted,” said Williams of Capital Economics.

The central bank has also refrained from loosening monetary policy by cutting reserve requirements — the amount of funds that banks must put aside — on fears of exacerbating the yuan’s depreciation, analysts said.

Some say China will need to devalue the yuan, and have even called on Beijing to move rapidly towards a free float of the currency.

But others believe such a move would reflect poorly on China, which in November received approval from the International Monetary Fund for the yuan to be included in its basket of elite currencies.

“The potential disruption to financial stability outside China, and with the risk of an Asian currency war, would ultimately feedback negatively to China,” said Michala Marcussen, global head of economics at Societe Generale.

source: business.inquirer.net

Asian stocks subdued as oil resumes fall

TOKYO - Asian stocks were subdued on Tuesday, with Japanese and South Korean equities slipping, after crude oil prices resumed their slide and cooled investor sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan were effectively unchanged, and looked set for a loss of around 12 percent for the year.

Japan's Nikkei lost 0.3 percent and South Korea's KOSPI fell 0.4 percent. Australian stocks bucked the trend and rose 0.4 percent.

On Monday, prices of both Brent and US crude dropped more than 3 percent , reversing a brief rebound and dragging US energy shares down 1.8 percent as the worst performing of the major S&P sectors.

Brent was at $36.60 a barrel, near an 11-year low of $35.98 struck last week.

The Dow dipped 0.1 percent and the S&P 500 lost 0.2 percent overnight after trading resumed following the Christmas break, but activity is expected to remain thin until after the long New Year holiday weekend.

In currencies, the dollar edged down 0.1 percent to 120.33 yen, within striking distance of a two-month low of 120.05 struck late last week.

The greenback has been sapped by profit taking after the Federal Reserve this month hiked interest rates for the first time in nine years. The currency market will wait for the Fed to send fresh signals about when the second rate hike could take place in 2016 for potential dollar support.

The euro nudged up 0.1 percent to $1.0977.

The dollar fared better against its Canadian counterpart, which was weighed down as crude oil prices weakened again.

The Canadian dollar stood little changed at C$1.3894 to the greenback after losing 0.7 percent overnight. The loonie fell to an 11-year low of C$1.4003 against the dollar earlier this month.

"We are looking for USD/CAD to break 1.40 and head towards 1.45 in the first half of 2016. The oil industry is experiencing its biggest downturn since the 1990s and prices could fall another $10 a barrel before bottoming," wrote Kathy Lien, managing director at BK Asset Management.

The Australian dollar gained 0.2 percent to $0.7262 while the New Zealand dollar rose 0.2 percent to $0.6859. Both currencies were confined to a narrow range ahead of the year's end. —Reuters

Dow, S&P 500 end down slightly as Apple, energy weigh

The Dow and the S&P 500 edged lower on Monday as energy shares dropped with oil prices and Apple retreated a day before its quarterly results.

Investors were cautious ahead of the Federal Reserve's two-day policy meeting, which begins on Tuesday. The market is looking for clues on the outlook for when the Fed may begin raising interest rates.

Apple shares fell 3.2 percent to $115.28, making it the biggest drag on all three major indexes, while a weak outlook from one of its suppliers, Dialog Semiconductor , led a fall in other semiconductors. An index of semiconductors was down 2 percent after three days of gains.

The iPhone maker reports quarterly results after the market closes on Tuesday.

"With Apple, it's more about their forecast and China news and any upgrades they may want to announce," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The S&P energy sector fell 2.5 percent, leading sector declines for the S&P 500. Crude oil prices slipped as global oversupply pushed fuel storage sites close to capacity. Exxon fell 2.1 percent to $81.22, while Chevron was down 2.7 percent to $88.77.

US stocks have mostly gained in October after a weak third quarter. The S&P 500 is up 7.9 percent for the month so far.

"It's been a pretty big move up, so we're seeing a little bit of consolidation today," Meckler said.

The Dow Jones industrial average fell 23.65 points, or 0.13 percent, to 17,623.05, the S&P 500 lost 3.97 points, or 0.19 percent, to 2,071.18 and the Nasdaq Composite added 2.84 points, or 0.06 percent, to 5,034.70.

Among the top Nasdaq gainers, shares of Ctrip.com were up 22.1 percent at $90.78 after the online travel firm said it would merge with Qunar Cayman Islands. Qunar jumped 7.9 percent to $42.65.

Strong quarterly results from tech companies have helped improve expectations for overall US third-quarter earnings.

S&P 500 earnings are forecast to have declined 2.8 percent in the quarter, based on actual results from about 35 percent of the S&P 500 companies and estimates for the rest, compared with a 4.2 percent decline forecast at the start of the month, according to Thomson Reuters data.

Data showed new US home sales fell 11.5 percent in September, suggesting a softening of the housing market. An index of housing shares was down 0.4 percent.

Other gainers included Pep Boys, which jumped 23.4 percent to $14.99 after it agreed to be acquired by Bridgestone for $15 per share.

Piedmont Natural Gas rose 36.9 percent to $57.82 after it agreed to be bought by Duke Energy. Duke Energy fell 2 percent.

After the bell, shares of Hartford Financial fell 4.7 percent to $46.50 following its results.

During the session, NYSE declining issues outnumbered advancers 1,916 to 1,153, for a 1.66-to-1 ratio; on the Nasdaq, 1,749 issues fell and 1,077 advanced, for a 1.62-to-1 ratio favoring decliners.

The S&P 500 posted 36 new 52-week highs and eight lows; the Nasdaq recorded 111 new highs and 73 lows.

About 6.1 billion shares changed hands on US exchanges, below the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data. — Reuters

Dividend payers get a break from Fed decision

NEW YORK - The Federal Reserve's decision not to hike interest rates may have brought renewed volatility and a stock market selloff, but it also carved out breathing room for a couple of sectors: dividend payers and housing stocks.

With 10-year Treasuries now yielding around 2.14 percent, the 2.2 percent dividend yield of the overall S&P 500 should appeal to income-hungry investors who are convinced interest rates will stay low for a while.

Some sectors' yields are much higher. Telecommunication services companies are yielding 5.35 percent, for example.

Utilities and real estate investment trusts (REITs) have gained ground since the Fed announced its decision. The S&P utility index, though down slightly on Friday, was the best-performing sector since the Fed announcement.

"We could be in a lower-for-longer environment, and ... some of the stocks that have yield components, whether it's REITs or utilities and other dividend stocks that have sold off, maybe those will eventually find a footing here and get some flow," said Stephen Gutch, senior portfolio manager at Federated Investors in Rochester, New York.

"They're fairly valued for a higher-rate environment, so I think they're attractive right now."

Since they compete with bonds, big dividend-paying stocks have benefited in recent years from the ultra-low interest rate environment, with the S&P utility index registering a 24.3 percent gain in 2014, the best of any S&P sector.

But this year, utilities have retreated as Treasury yields rose on the prospect of a Fed rate hike. With the Fed now holding off, the sector may fall back into favor.

"When I look at utilities that are yielding in the 4-percent range, I think they're priced for what I'd call a normal 10-year Treasury yield - call it 4 or 5 percent - because with utilities you're still going to get some earnings growth," said Josh Peters, director of equity income strategy at Morningstar. "I'd have a similar take on REITs."

Although dividend payers provide a certain measure of protection in volatile markets, they are by no means sheltered from the market's ups and downs. Volatility most likely will stick around, analysts say, as investors reassess the prospects for interest rates and global economic growth.

"We believe we have moved from a market where one should simply buy the dips, to one in which one ought to also sell rallies," Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York, wrote in a research note.

Another area of the market that could benefit from the low-for-longer rate environment is the housing sector, with prospects of continuing low rates helping mortgage seekers.

As the jobs market and income growth improve, demand for housing should rise as well, Fed Chair Janet Yellen said on Thursday.

Housing shares have outperformed the broader market this year, with the PHLX housing index up 10.9 percent, compared with the S&P 500's decline of 4.5 percent.

Next week, reports on existing and new home sales could move stocks like Lennar or PulteGroup. — Reuters

Asian shares edge up, brush off soft China data

TOKYO - Asian shares edged up on Monday in cautious trade, brushing off soft economic data from China, as investors looked to whether the US Federal Reserve is confident enough to raise interest rates for the first time in a decade.

US stock futures rose 0.4 percent from late US levels in early Asian trade while Japan's Nikkei rose 0.4 percent. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 percent.

Data published at the weekend showed growth in China's investment and factory output missed forecasts in August, raising the chances that China's third-quarter economic growth may dip below 7 percent for the first time since the global crisis.

The data add to expectations that Beijing will respond with more measures to prop up the economy.

"The numbers fit with our view that China will have to roll out more monetary easing," said Fumio Nakakubo, Japan CIO at UBS's wealth management division.

China's output of key industrial commodities including coal and steel weakened in August, as government measures to prevent smog from affecting World War Two commemorations further cut production already lowered by a slowing economy.

Slowing demand from China are likely to keep a tab on commodity prices.

Influential Wall Street trader Goldman Sachs cut its outlook on oil late last week, lowered its 2016 forecast for US crude to $45 a barrel from $57 previously, citing oversupply and concerns over China's economy.

The investment bank said crude could even fall to near $20 a barrel.

In early trade, US crude futures traded at $44.82, up 0.4 percent from last week's close after a 3.0 percent fall last week.

Still trading in most asset classes could be subdued as investors look to whether the US Fed will raise rates at its policy meeting on Sept 16-17.

"It is fair to say that the full spectrum of views is on offer. Clearly this is the most anticipated Fed meeting in a number of years," analysts at ANZ said in a report.

A small majority of forecasters are sticking to their guns and predicting the Federal Reserve will pull the trigger next week on the first US interest rate increase in nearly a decade.

Traders are pricing in smaller chance of a rate hike, however, suspecting the Fed may tread cautiously given the falls in equity markets and commodities in recent weeks.

"We think it is almost 50-50 whether the Fed will raise rates this week but we expect a rate hike by December on the grounds that the US economy is pretty strong," said UBS's Nakakubo.

In the currency market, the dollar was little changed against major currencies.

Against the yen, it traded at 120.67 yen. The euro stood little changed at $1.1342, holding on to last week's 1.8 percent gain. —Reuters

Asian shares resume slide on fears over Chinese economy

TOKYO - Asian stocks looked vulnerable to another sell-off on Tuesday, with investors gripped by fears of a hard landing for the Chinese economy, the world's most important growth engine.

Japan's Nikkei index fell 3.8 percent to six-month lows while the MSCI's broadest index of Asia-Pacific shares outside Japan hit fresh three-year lows.

Underlining concerns about China, Japanese Finance Minister Taro Aso said on Tuesday he hoped China would take action to stabilize its economy and that Tokyo had no plan for now to unveil its own new economic stimulus package.

MSCI's all country world index fell 3.8 percent on Monday to a 10 1/2-month low, its biggest fall in almost four years. It has lost 9.2 percent over five days.

Leading the losses were Chinese shares, which plunged more than 8 percent to post their biggest losses since 2007 on heightened worries that the Chinese economy was growing at a much slower pace than Beijing's 7 percent target for 2015.

Investors are also unnerved by uncertainty over US monetary policy. The Federal Reserve has said it plans to raise interest rates this year for the first time in almost a decade.

The heavy fall in share prices worldwide over the past week has sharply reduced expectations of a US rate hike in September, but the outlook is far from clear.

"There seems to be no consensus with the Fed on whether they are worried about acting too prematurely or too late," Toru Yamamoto, chief bond strategist at Daiwa Securities, said in report.

The S&P 500 Index fell 3.9 percent to a 10-month low on Monday. The CBOE volatility index, a key measure of US equity volatility, shot up to more than 50 percent at one point for the first time since the 2008 global financial crisis.

Because some investors often fund their investment in risk assets by borrowing low-yielding euro and yen, the sell-off in shares helped send both currencies to seven-month highs.

The euro rose as high as $1.1715 and last stood at $1.1571 while the yen strengthened to 116.15 to the dollar before stepping back to 118.80.

The dollar was not helped by falls in US bond yields either, which diminishes the currency's yield attraction.

The 10-year US Treasuries yield fell to a four-month low of 1.905 percent in choppy trade on Monday and last stood at 2.012 percent.

Oil prices plunged more than 6 percent on Monday to 6 1/2-year lows after the dive in Chinese equities market.

US crude futures traded at $38.38 per barrel, near Monday's low of $37.75.

Brent crude futures fell to $42.23 on Monday and last stood at $42.69.

Brent stood not far from $36.20, its low hit in the aftermath of the global financial crisis, having fallen more than 66 percent from last year's peak.

Copper, a good indicator of global economic activity because of its wide use, declined to a six-year low of $4,855 a tonne, falling more than 52 percent from its 2011.

The fall in commodity prices have hurt many commodity exporting countries' currencies.

The Australian dollar traded at $0.7177, having fallen to a 6-1/2-year low of $0.7044 on Monday. —Reuters

US economy: Consumer spending bolsters second-quarter growth

WASHINGTON -  U.S. economic growth accelerated in the second quarter as solid consumer spending offset the drag from weak business spending on equipment, suggesting a steady momentum that could bring the Federal Reserve closer to hiking interest rates this year.

Gross domestic product expanded at a 2.3 percent annual rate, the Commerce Department said on Thursday. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show it rising at a 0.6 percent rate.

The revision to first-quarter growth reflected steps taken by the government to refine the seasonal adjustment for some components of GDP, which economists said left residual seasonality in the data, as well as new source data.

The Fed on Wednesday described the economy as expanding "moderately" while upgrading its view of the labor market and saying housing had shown "additional" improvement. The Fed's assessment left the door open for a possible hike in interest rates in September, which would be the first rise since 2006.

A separate report showed first-time applications for state unemployment benefits increased 12,000 last week to a seasonally adjusted 267,000. However, claims remained not too far from their cycle lows.

The dollar extended gains against a basket of currencies, while prices for U.S. Treasury debt fell slightly.

Though second-quarter GDP growth was a bit below economists' expectations for a 2.6 percent rate, the growth composition pointed to firming domestic fundamentals.

A measure of private domestic demand, which excludes trade, inventories and government expenditures, increased at a 2.5 percent rate after rising at a 2.0 percent pace at the start of the year.

Growth in the second quarter was boosted by consumer spending as households used some of the windfall from cheaper gasoline in late 2014 and early this year to go shopping. The strengthening labor market also encouraged consumers to loosen their purse strings.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 2.9 percent rate from a downwardly revised 1.8 percent pace in the first quarter. Consumer spending was previously reported to have increased at a 2.1 percent rate at the start of the year.

The saving rate fell to 4.8 percent from 5.2 percent.

ENERGY DRAG PERSISTS

Housing also supported the economy in the second quarter, as did exports, and state and local government spending.

However, the energy sector continued to weigh on growth as it struggles with the lingering effects of deep spending cuts by oil-field companies like Schlumberger (SLB.N) and Halliburton (HAL.N) in the aftermath of a more than 60 percent plunge in crude oil prices last year.

Business spending on structures fell at a 1.6 percent rate after stumbling 7.4 percent at the start of the year. Investment on equipment fell at a 4.1 percent rate.

Spending on mining exploration, wells and shafts plunged at a 68.2 percent rate, the largest decline since the second quarter of 1986. This category dropped at a 44.5 percent pace in the first quarter.

But there are signs that the energy spending rout might be nearing an end. Data last Friday showed U.S. energy firms added 21 oil rigs last week, marking the third increase over the past 33 weeks.

Schlumberger said last week it believed the North American rig count may be bottoming and that a slow rise in both land drilling and completion activity could occur in the second half of the year.

Exports rebounded in the second quarter, despite a strong dollar, while imports rose moderately. That left a smaller trade deficit that added 0.13 percentage point to GDP growth.

Inventory investment slowed after the first quarter's brisk pace. Businesses accumulated $110.0 billion worth of merchandise, down from $112.8 billion in the first quarter, good news for the remainder of the year.

With oil prices rising during the second quarter and consumer spending picking up, inflation accelerated sharply.

The personal consumption expenditures price index rebounded at a 2.2 percent rate, the fastest since the first quarter of 2012, after falling at a 1.9 percent rate at the start of the year. Excluding food and energy, prices increased at a 1.8 percent pace.  — Reuters

Dollar up despite US rate hike uncertainty

Tokyo, Japan – The dollar ticked higher on Tuesday despite comments from a Federal Reserve official that cast doubt on a mid-year interest rate hike, while Greece's bailout woes held back the euro.

In Tokyo, the greenback bought ¥119.45, up from ¥119.22 in New York and sharply higher from ¥118.62 in Tokyo earlier Monday.

The euro was mixed, slipping to $1.0724 from $1.0741 while it strengthened slightly to ¥128.07 against ¥128.05 in US trade.

The rise in the dollar came despite a key Federal Reserve official suggesting a US rate hike could be pushed back beyond mid-year.

New York Fed President William C. Dudley said recent inflation data was not strong enough to warrant a near-term rise, even though economic growth was healthy.

"The Fed will likely start tightening later in the year, and there’s a strong appetite in Japan for foreign portfolio and direct investments,” said Taisuke Tanaka, Deutsche Bank's chief currency strategist in Tokyo.

“We continue to recommend buying the dollar-yen on dips.”

The euro remained under pressure after falling Monday on growing worries about Greece's future in the eurozone, as Athens looks to secure billions of euros in bailout cash to pay its enormous debts.

With its creditors refusing to extend a repayment deadline while also haggling over its bailout reforms, the Greek government has ordered all public agencies to hand over their financial reserves.

“Markets are recognizing Greece as a risk factor as everybody knows the tight financing situation,” Keisuke Hino, a foreign-exchange trader at Mizuho Bank, told Bloomberg News.

"Markets expect a default to be avoided but they have to keep the risk in mind.” – Agence France-Presse

source: gmanetwork.com

Dollar nurses losses as euro rallies, commodity currencies surge

SYDNEY/TOKYO  – The dollar nursed broad losses on Wednesday, having suffered its biggest one-day fall in over a year as it came under pressure from many fronts amid oil-fueled gains by commodity currencies.

Buyers snapped up commodity currencies as the oil market extended its recovery and copper prices also surged.

Elsewhere in the market, the euro recovered on hopes that Greece may yet secure a new debt deal.

The euro's rally from Tuesday's low of $1.1312 went as far as $1.1534. It last traded at $1.1470, well off an 11-year trough of $1.1098 set last week.

That contributed to a 0.9 percent slide in the dollar index, its biggest one-day fall since October, 2013. The index last traded at 93.758 after stooping to 93.25 overnight.

In a development that supported the battered euro, Greek Prime Minister Alexis Tsipras sought to reassure international partners that Athens did not want to create divisions in Europe with its call for a new debt accord and said he was open to listening to alternative proposals.

Yet, there was still plenty of uncertainty whether Tsipras will be successful, suggesting the rally in the euro was more about positioning rather than any change in fundamentals, traders said.

Commodity currencies remained in the spotlight with crude oil up about 19 percent over the past four sessions, while copper saw its biggest one-day gain since July 2013. Oil's recovery helped spur a global rally in risk assets.

"It feels a little strange seeing crude oil and equities move in tandem, as higher oil under normal circumstances would slow economic growth. But we just have to go with the flow, and brace for 'risk on' when oil goes up," said Bart Wakabayashi, head of forex at State Street in Tokyo.

"Currencies appear to be at the whim of the oil market. For now oil has become an indicator of risk appetite," he said.

The Australian dollar hovered around 78 US cents, staging an impressive turnaround from a slump to a six year trough of $0.7627.

The short-covering rally followed the Aussie's slump on Tuesday, when the Reserve Bank of Australia (RBA) cut interest rates to a record low 2.25 percent.

The Canadian dollar jumped for a second session to two-week highs of C$1.2353 per US dollar. It last traded at C$1.2428.

Sterling climbed to $1.5198, pulling further away from a near 19-month low of $1.4952 set last month. The British currency had posted its best session in nearly 10 months on Tuesday.

Against the yen, the dollar fared better as US Treasury yields jumped and a rally by Tokyo shares lessened the allure of the safe-haven Japanese currency. The greenback was rose 0.3 percent to 117.95, having recovered from a low of 116.87.

Traders said the dollar's recent rally to multi-year highs against the yen and euro could falter as doubts emerge over whether the Federal Reserve will raise interest rates this year.

"When most central banks across developed and emerging economies are in easing mode, the assumption that the Federal Reserve will raise rates this year is starting to look questionable," said David Absolon, Investment Director at Heartwood Investment Management.

"For Fed policymakers, the external environment and the actions of other central banks are becoming increasingly hard to ignore," he wrote in a note to clients. – Reuters

Peso gains on strength of Asian currencies as China, Europe make suprise moves

The peso strengthened against the dollar on Monday, tracking movements of other Asian currencies.

The local currency gained P0.07 to 44.91:$1 from 44.98 Friday.

Two events – European Central Bank chief Mario Draghi's statement last week and the decision of People's Bank of China on lending rates – helped Asian currencies to gain on Monday, Security Bank first vice president for treasury Andre Ibarra told GMA News Online.

These events imply Asian currencies, including the peso, are stronger than the dollar, he noted.

ECB head Draghi last week surprised financial markets by declaring his commitment to fighting deflation, Reuters reported.

On the other hand, People's Bank of China announced last week that it was cutting one-year benchmark lending rates for the first time in more than two years, according to a separate from Reuters. – VS, GMA News

source: gmanetwork.com