Wed 26 Jul 2017


watch Nightly Business Report. watch Bloomberg Technology (25 Jul).
watch Bloomberg: Facebook’s Q2/2017 Earnings Report
watch CNBC: PayPal’s Q2/2017 Earnings Report
watch Bloomberg Technology: US Tech Firms Expand Their Presence in UK
watch Bloomberg Poll Expects Next Bear Market in 2018

In Portfolioticker today

Today at the stock market

bull/bearTreasuries rose, the USD fell and U.S. stocks ended little changed after the Federal Reserve signaled that inflation remains persistently below its target even as the economy picks up steam. Oil surged to an eight-week high.

The S&P 500 Index erased gains in the final 15 minutes of trading. Results from AT&T Inc. to Boeing Co. bolstered other major indexes. Facebook Inc. rose 2 percent in late trading after reporting its earnings. Crude climbed above $48 a barrel as stockpiles shrank.

  • The S&P 500 gained less than 0.1 percent to end at 2,477.87 as of 4 p.m. in New York, extending its all-time high by less than one point. It rose as much as 0.2 percent earlier in the session, with earnings delivering outsize moves for some stocks.
  • The Dow Jones Industrial Average rose above 21,700 for the first time. Boeing Co. jumped 9.9 percent to a record, while AT&T added 5 percent, the most since 2009.
  • Small caps in the Russell 2000 Index slid 0.6 percent.
  • The Stoxx Europe 600 Index advanced 0.5 percent, the biggest gain in a week.
  • The U.K.’s FTSE 100 Index increased 0.2 percent.
  • Germany’s DAX Index climbed 0.3 percent.

The Bloomberg Dollar Spot Index fell to the lowest in more than a year, while the 10-year Treasury yield slipped back below 2.3 percent after the Fed held rates steady and indicated it would start unwinding its balance sheet “relatively soon.”

The Fed noted that inflation remains below its 2 percent target even as near-term risks to the economic outlook appear “roughly balanced,” fueling speculation the central bank won’t rush to raise rates. Balancing that dovish bent, the start of balance-sheet reduction another milestone as the Fed looks to return policy to a more normalized level.

The FOMC decision overshadowed a raft of corporate earnings, during a season that’s seen more than 80 percent of S&P 500 companies that have delivered earnings beat forecasts. That’s boosted optimism in the global economy and pushing volatility toward record lows.Bloomberg

Market indices

:-) The S&P500 closed on a record high of 2,477.83 beating yesterday’s record of 2,477.08.
:-) The DJIA closed on a record high of 21,711.01 beating its 19 Jul 2017 record of 21,640.75.
:-) The NASDAQ closed on a record high of 6,422.75 beating yesterday’s record of 6,412.17.

Index Ticker Today Change 31 Dec 16 YTD
S&P 500 SPX (INX) 2,477.83 +0.03% 2,238.83 +10.67%
DJIA INDU 21,711.01 +0.45% 19,762.60 +9.85%
NASDAQ IXIC 6,422.75 +0.16% 5,383.12 +19.31%

The portfolio today

USD and AUD denominated indices over the past 52 weeks (Chart: Bunting)
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting

Index values

:-) At 2.776 our USD-denominated index is just 0.09% below its 7 Jun 2017 record of 2.779.

Index Currency Today Change 31 Dec 16 YTD
USD-denominated Index USD 2.776 +0.45% 2.105 +31.89%
Valuation Rate USD/AUD 0.80396 +0.65% 0.72663 +10.64%
AUD-denominated Index AUD 3.456 -0.20% 2.895 +19.38%

Portfolio stock prices

:-) Amazon closed on a record high of 1,052.80 beating yesterday’s record of $1,039.87.
:-) Visa closed on a record high of 100.85 beating its 24 Jul 2017 record of $100.37.

Stock Ticker Today Change 31 Dec 16 YTD
Alphabet A GOOGL $965.31 -0.38% $792.45 +21.81%
Alphabet C GOOG $947.80 -0.31% $771.82 +22.80%
Apple AAPL $153.46 +0.47% $115.82 +32.49%
Amazon AMZN $1052.80 +1.24% $749.87 +40.39%
Ebay EBAY $37.04 +1.98% $29.69 +24.75%
Facebook FB $165.61 +0.20% $115.05 +43.94%
PayPal PYPL $58.79 +0.91% $39.47 +48.94%
Twitter TWTR $19.61 -1.80% $16.30 +20.30%
Visa V $100.85 +0.86% $78.02 +29.26%
VMware VMW $92.36 -0.02% $78.73 +17.31%

FX: USD/AUD

USD

DXY movements
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg

The Bloomberg Dollar Spot Index fell 0.6 percent.
Japan’s JPY rose 0.6 percent to 111.247 per dollar after declining 0.7 percent on Tuesday.
Bloomberg

AUD

AUD movements
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com

Oil and Gas Futures

Futures prices

Oil prices rose to near eight-week highs on Wednesday, with Brent crude futures at over $50/barrel, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance. Brent crude futures were up 67 cents to $50.87/barrel by 10:39 a.m. EDT (1439 GMT). Prices surpassed levels seen Tuesday when Brent futures strengthened more than 3%.

U.S. West Texas Intermediate futures climbed 83 cents to $48.72 a barrel. U.S. crude stocks fell last week as refineries hiked output and imports dropped, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.

Crude inventories fell 7.2 million barrels in the week ending 21 Jul 2017, more than the expected decrease of 2.6 million barrels. The decline was the fourth consecutive drop, giving support to the market. This added to hopes a long-awaited rebalancing was underway in the oil market. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in Aug 2017, down nearly 1 million bpd from a year earlier.

“Today’s report has strengthened the bullish sentiment already prevailing in the market, although the longevity of the move remains in doubt,” said Abhishek Kumar, Senior Energy Analyst at Interfax Energy’s Global Gas Analytics in London. “Nevertheless, the country’s crude and gasoline stockpiles remain above their five-year averages, which will cap price gains.” The drawdown was a combination of higher exports from the United States, marginal decline in oil output and a rise in the refinery utilization rate, he said.

“The market has been tightening and the refinery margins are strong,” said PetroMatrix managing director Olivier Jakob, saying the U.S. stock draw offered a boost to prices. “You add geopolitical risk premium for Venezuela, and you’ve got a strong market.”

Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.

President Nicolas Maduro’s opponents launched a two-day national strike on Wednesday to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for Venezuelan oil.

Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilized at 1.8 million bpd.

But analysts said the current oil price rally could encourage more production, particularly from the United States.

“Relieved bulls should be careful what they wish for. Any price rebound will only embolden U.S. shale producers at a time when rumors have started to emerge that the U.S. shale boom is slowing,” PVM oil analyst Stephen Brennock said in a note.

Anadarko Petroleum Corp said on Monday it would cut its 2017 capital budget by $300 million because of depressed oil prices, the first major U.S. oil producer to do so, after posting a larger-than-expected quarterly loss.Reuters

West Texas Intermediate crude advanced 1.8 percent to settle at $48.75 a barrel, the highest since May 30. Government data showed U.S. crude and products stockpiles tumbled last week to their lowest levels since the start of the year.Bloomberg

Prices are as at 15:48 ET

  • NYMEX West Texas Intermediate (WTI): $48.69/barrel +1.67% Chart
  • ICE (London) Brent North Sea Crude: $50.91/barrel +1.41% Chart
  • NYMEX Natural gas futures: $2.93/MMBTU -0.61% Chart

Facebook Earnings Report. Q2/2017

Press Release Extract [fb]

Second Quarter 2017 Operational and Other Financial Highlights

  • Daily active users (DAUs) – DAUs were 1.32 billion on average for June 2017, an increase of 17% year over-year.
  • Monthly active users (MAUs) – MAUs were 2.01 billion as of June 30, 2017, an increase of 17% year over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 87% of advertising revenue for the second quarter of 2017, up from approximately 84% of advertising revenue in the second quarter of 2016.
  • Capital expenditures – Capital expenditures for the second quarter of 2017 were $1.44 billion.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $35.45 billion at the end of the second quarter of 2017.
  • Headcount – Headcount was 20,658 as of June 30, 2017, an increase of 43% year-over-year.

Facebook, “Earnings Report“, 26 Jul 2017 More

Market Reaction

fb_20170726

PayPal Earnings Report. Q2/2017

Press Release Extract [pypl]

Financial highlights for the second quarter include:

  • Revenue growth of 18% to $3.136 billion, or 20% on a foreign currency neutral (FX-neutral) basis.
  • GAAP operating margin of 13.7% and non-GAAP operating margin of 21.0%.
  • GAAP earnings per diluted share (EPS) growth of 27% to $0.34, non-GAAP EPS growth of 27% to $0.46.
  • Operating cash flow of $921 million, free cash flow of $747 million.

Operating highlights for the second quarter include:

  • 6.5 million active customer accounts added with net new additions up 80%.
  • Ended the quarter with 210 million active customer accounts, including 17 million merchant accounts.
  • 1.8 billion payment transactions, up 23%.
  • 32.3 payment transactions per active account on a trailing twelve months basis, up 10%.
  • $106 billion in total payment volume (TPV), up 23%, or 26% on an FX-neutral basis.

“The accelerating and extensive scale of our two-sided global platform creates a strong foundation for PayPal’s growth, enabling consumers and merchants to transact in new contexts and across operating systems, technologies and platforms,” said Dan Schulman, President and CEO of PayPal. “Our strong results reflect PayPal’s transformation from a single product to a platform company, from a vendor to a strategic partner to both merchants and ecosystem players, and from a checkout option to an increasingly more central way for consumers to manage and move their money.”

2017 Financial Guidance

Full Year 2017 Revenue and Earnings Guidance Raised

  • PayPal expects revenue to grow 18 – 19% at current spot rates and 19 – 20% on an FX-neutral basis, to a range of $12.775 – $12.875 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $1.32 – $1.36 and non-GAAP earnings per diluted share in the range of $1.80 – $1.84.
  • Estimated non-GAAP amounts above for the twelve months ending December 31, 2017, reflect adjustments of approximately $840 – $880 million, primarily representing estimated stock-based compensation expense and related employer payroll taxes in the range of $690 – $720 million.

Third Quarter 2017 Revenue and Earnings Guidance

  • PayPal expects revenue to grow 18% – 20% at current spot rates and 18% – 20% on an FX-neutral basis, to a range of $3.140 – $3.190 billion.
  • PayPal expects GAAP earnings per diluted share in the range of $0.30 – $0.32 and non-GAAP earnings per diluted share in the range of $0.42 – $0.44.
  • Estimated non-GAAP amounts above for the three months ending September 30, 2017, reflect adjustments of approximately $200 – $215 million, primarily representing estimated stock-based compensation expense and related employer payroll taxes in the range of $180 – $190 million.

PayPal, “Earnings Report“, 26 Jul 2017 More

Market Reaction

pypl_20170726

flag_australia AU: Consumer Price Index. Jun 2017

Press Release Extract [ser_97]

The Consumer Price Index (CPI) rose 0.2 per cent in the June quarter 2017, the latest Australian Bureau of Statistics (ABS) figures reveal. This follows a rise of 0.5 per cent in the March quarter 2017.

The most significant price rises for the quarter were medical and hospital services (+4.1 per cent), new dwelling purchase by owner-occupiers (+0.9 per cent) and tobacco (+1.0 per cent). These rises are partially offset by falls in domestic holiday travel and accommodation (-3.2 per cent) and automotive fuel (-2.5 per cent).

The CPI rose 1.9 per cent through the year to June quarter 2017 having increased to 2.1 per cent in the March quarter 2017.

Chief Economist for the ABS, Bruce Hockman, said: ‘Inflation in Australia remains low. Price falls for automotive fuel; and ongoing competition in the clothing and food retail markets has contributed to this quarter’s result. In addition, the ABS continues to closely monitor the impact of Cyclone Debbie on fruit and vegetable prices. While strong price rises were recorded for select fruit and vegetables such as tomatoes, beans, cucumbers, melons, berries and bananas in the June quarter 2017 – these rises were offset by falls in seasonally available fruits such as oranges, mandarins and apples.’

The All Groups CPI:

  • rose 0.2% this quarter, compared with a rise of 0.5% in the March quarter 2017.
  • rose 1.9% over the twelve months to the June quarter 2017, compared with a rise of 2.1% over the twelve months to the March quarter 2017.

Overview of CPI movements:

  • The most significant price rises this quarter are medical and hospital services (+4.1%), new dwelling purchase by owner-occupiers (+0.9%), tobacco (+1.0%) and beer (+1.0%).
  • The most significant offsetting price falls this quarter are domestic holiday travel and accommodation (-3.2%), automotive fuel (-2.5%) and fruit (-4.4%).

Health Group (+2.7%)

The main contributor to the rise in the health group this quarter is medical and hospital services (+4.1%). The rise is due to the annual increase in private health insurance (PHI) premiums on 1 April, and at the same time, the annual decrease in the PHI rebate. The rise is partially offset by a fall in pharmaceutical products (-1.1%) due to the cyclical effect of a greater proportion of consumers exceeding the Pharmaceutical Benefits Scheme (PBS) safety net.

Over the last twelve months, the health group rose 3.8%. The main contributor to the rise is medical and hospital services (+5.3%).

In seasonally adjusted terms, the health group rose 0.9% this quarter. The main contributor to the rise is medical and hospital services (+1.1%).

Housing Group (+0.3%)

The main contributors to the rise in the housing group this quarter are new dwelling purchase by owner-occupiers (+0.9%), gas and other household fuels (+0.4%) and rents (+0.2%). The rise in new dwelling purchase by owner-occupiers is driven by rises in input costs. The rise in gas and other household fuels is driven by the seasonal switch to peak pricing in Melbourne. The rise is partially offset by a fall in electricity (-0.2%) due to the seasonal switch to off-peak pricing in Adelaide.

Over the last twelve months, the housing group rose 2.4%. The main contributors to the rise are new dwelling purchase by owner-occupiers (+2.8%) and electricity (+7.8%).

In seasonally adjusted terms, the housing group rose 0.8% this quarter. The main contributor to the rise is new dwelling purchase by owner-occupiers (+0.9%).

Recreation and Culture Group (-0.6%)

The main contributor to the fall in the recreation and culture group this quarter is domestic holiday travel and accommodation (-3.2%). The fall in domestic holiday travel and accommodation is typical of the off peak season for domestic holiday travel.

Over the last twelve months, the recreation and culture group fell 0.1%. The main contributors to the fall are international holiday travel and accommodation (-3.7%) and audio, visual and computing equipment (-7.0%). The fall is partially offset by a rise in domestic holiday travel and accommodation (+2.2%).

In the CPI, airfares and accommodation are collected in advance (at the time of payment), but are only used in the CPI in the quarter in which the trip is undertaken. International airfares are collected two months in advance (April for travel in June) and domestic airfares and accommodation are collected one month in advance (May for travel in June).

In seasonally adjusted terms, the recreation and culture group rose 0.5% this quarter. The main contributor to the rise is international holiday travel and accommodation (+1.5%).

Alcohol and Tobacco Group (+0.8%)

The main contributor to the rise in the alcohol and tobacco group this quarter is tobacco (+1.0%). The rise in tobacco is due to flow on effects from the federal excise tax increase effective from 1 March 2017.

Over the last twelve months, the alcohol and tobacco group rose 5.9%. The main contributor to the rise is tobacco (+12.1%).

In seasonally adjusted terms, the alcohol and tobacco group rose 1.1% this quarter. The main contributor to the rise is tobacco (+1.9%).

Furnishings, Household Equipment and Services Group (+0.7%)

The main contributors to the rise in the furnishings, household equipment and services group this quarter are household textiles (+4.0%), glassware, tableware and household utensils (+1.0%) and furniture (+0.9%), following discontinued post-Christmas sales.

Over the last twelve months, the furnishings, household equipment and services group recorded no movement. The main positive contributor is child care (+6.1%) and the main negative contributor is furniture (-2.9%).

In seasonally adjusted terms, the furnishings, household equipment and services group rose 0.2% this quarter.

Transport Group (-0.6%)

The main contributor to the fall in the transport group this quarter is automotive fuel (-2.5%). Automotive fuel fell in April (-0.8%), rose in May (+0.2%) and fell in June (-0.6%). All fuel types recorded falls this quarter. The fall is partially offset by rises in motor vehicles (+0.3%) and urban transport fares (+0.2%).

The following graph shows the pattern of the average daily prices for unleaded petrol for the eight capital cities over the last fifteen months.

Over the twelve months, the transport group rose 2.1%. The main contributor to the rise is automotive fuel (+6.9%). This rise is partially offset by a fall in motor vehicles (-1.3%).

In seasonally adjusted terms, the transport group fell 0.5% this quarter. The main contributor to the fall is automotive fuel (-2.5%).

Food and Non-Alcoholic Beverages Group (-0.2%)

The main contributors to the fall in the food and non-alcoholic beverages group this quarter are fruit (-4.4%) and snacks and confectionary (-1.3%). Rises in selected fruits and vegetables resulting from crop damage due to Cyclone Debbie were observed for tomatoes, beans, cucumbers, melons, berries and bananas. However, these rises were offset by falls in seasonally available fruits such as oranges, mandarins and apples. For vegetables there has been an increase in the supply of potatoes following a shortage due to adverse weather conditions previous periods.

Over the last twelve months, the food and non-alcoholic beverages group rose 1.9%. The main contributors to the rise is vegetables (+11.1%), restaurant meals (+2.8%) and fruit (+6.4%). Adverse weather conditions in major growing areas in previous periods impacted the supply for particular vegetables and fruits.

In seasonally adjusted terms, the food and non-alcoholic beverages group rose 0.3% this quarter. The main contributor to the rise is vegetables (+1.6%).

Communication Group (-0.5%)

The main contributor to the fall in the communication group this quarter is telecommunication equipment and services (-0.5%).

Over the last twelve months, the communication group fell 3.8%. The main contributor to the fall is telecommunication equipment and services (-4.2%).

The communication group is not seasonally adjusted.

Clothing and Footware Group (-0.3%)

The main contributors to the fall in the clothing and footwear group this quarter are garments for men (-1.9%) and garments for women (-1.0%) as a result of sustained periods of specials. The fall is partially offset by rises in garments for infants and children (+1.4%) and accessories (+0.4%).

Over the last twelve months, the clothing and footwear group fell 1.9%. The main contributor to the fall is garments for women (-4.9%).

In seasonally adjusted terms, the clothing and footwear group fell 1.4% this quarter. The main contributors to the fall are garments for men (-4.2%) and garments for women (-2.1%).

Insurance and Financial Services Group (-0.1%)

The main contributor to the fall in the insurance and financial services group this quarter is insurance (-1.0%). The fall is partially offset by rises in deposit and loan facilities (direct charges) (+0.5%) and other financial services (+0.3%). The fall in insurance is related to the NSW Government’s planned removal of the Emergency Services Levy (ESL) from Home and Contents insurance premiums in NSW from 1 July 2017. The NSW Government decided on 30 May to delay the removal of the ESL from insurance premiums. Some insurers in NSW had already started passing on the savings from the anticipated removal of the ESL, resulting in the price falls this quarter.

Over the past twelve months, the insurance and financial services group rose 2.1%. The main contributor to the rise is insurance (+4.3%).

In seasonally adjusted terms, the insurance and financial services group rose 0.2% this quarter. The main contributor to the rise is deposit and loan facilities (direct charges) (+0.5%).

Education Group (0.0%)

The education group recorded no movement this quarter.

Over the last twelve months, the education group rose 3.3%. The main contributors to the rise are secondary education (+4.1%) and tertiary education (+2.6%).

In seasonally adjusted terms, the education group rose 1.3% this quarter. The main contributors to the rise are tertiary education (+1.3%) and secondary education (+1.2%).

International Trade Exposure – Tradables and Non-Tradables

The tradables component of the All groups CPI fell 0.3% this quarter. Price changes for the goods and services in this component are largely determined on the world market. The tradables component represents approximately 35% of the weight of the CPI. The tradable goods component recorded a fall of 0.4% this quarter. The most significant negative contributor is automotive fuel (-2.5%), while the most significant positive contributor is household textiles (+4.0%). The rise in the tradable services component of 0.8% is driven by international holiday travel and accommodation (+0.9%).

The non-tradables component of the All groups CPI rose 0.4% this quarter. Price changes for the goods and services in this component are largely determined by domestic price pressures. The non-tradables component represents approximately 65% of the weight of the CPI. The most significant contributors to the 0.6% rise in the non-tradable goods component are new dwelling purchase by owner-occupiers (+0.9%) and tobacco (+1.0%). The rise in the non-tradable services component of 0.3% is driven by medical and hospital services (+4.1%) and restaurant meals (+0.7%).

Over the last twelve months, the tradables component rose 0.4%, while the non-tradables component rose 2.7%. This compares to a rise of 1.3% and 2.6% respectively over the twelve months to the March quarter 2017.

In seasonally adjusted terms, the tradables component of the All groups CPI fell 0.3% this quarter, while the non-tradables component rose 0.7%.

Australian Bureau of Statistics, “6401.0 – Consumer Price Index. Jun 2017“, 26 Jul 2017 More

flag_usa US: New Residential Sales. Jun 2017

Press Release Extract [ser_12]

New Home Sales

Sales of new single-family houses in June 2017 were at a seasonally adjusted annual rate of 610,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.8 percent (±12.1 percent) above the revised May rate of 605,000 and is 9.1 percent (±14.4 percent) above the June 2016 estimate of 559,000.

us_newressales_20170726

Sales Price

The median sales price of new houses sold in June 2017 was $310,800. The average sales price was $379,500.

For Sale Inventory and Months’ Supply

The seasonally-adjusted estimate of new houses for sale at the end of June was 272,000. This represents a supply of 5.4 months at the current sales rate.

US Census Bureau and Department of Housing and Urban Development, “New Residential Sales. Jun 2017“, 26 Jul 2017 (10:00) More

flag_usa US: FOMC Monetary Policy Release

Press Release Extract [ser_35]

Information received since the Federal Open Market Committee met in June indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have been solid, on average, since the beginning of the year, and the unemployment rate has declined. Household spending and business fixed investment have continued to expand. On a 12-month basis, overall inflation and the measure excluding food and energy prices have declined and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, and labor market conditions will strengthen somewhat further. Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee’s 2 percent objective over the medium term. Near-term risks to the economic outlook appear roughly balanced, but the Committee is monitoring inflation developments closely.

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1 to 1¼ percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

For the time being, the Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated; this program is described in the June 2017 Addendum to the Committee’s Policy Normalization Principles and Plans.

Federal Reserve, “FOMC Monetary Policy Release“, 26 Jul 2017 (14:00) More

flag_japan Japan update

Currency: USD/JPY

JPY movements
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: Nikkei 225

N225 movements
^ Nikkei N225 movements over the past week Chart: Google Finance

flag_china China update

Currency: USD/CNY

CNY movements
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: CSI300

CSI300 movements
^ Shanghai CSI300 movements over the past week Chart: Google Finance