Gold Prices Fall as Uncertainty Over Sino-U.S. Trade Progress Continues By Investing.com


© Reuters.

Investing.com – Prices of the safe-haven gold fell on Friday in Asia as traders continued to monitor Sino-U.S. trade news.

The U.S. fell 0.4% to $1,477.45 by 1:42 AM ET (05:42 GMT).

On Thursday, U.S. President Donald Trump said trade talks were “moving right along”, pushing global equities higher.

Uncertainties over a deal remained, as the president’s comments this week sent mixed signals regarding the trade talk progress.

Trump said overnight that negotiations with China are going “very well” overnight, just one day after he dented hopes for a trade deal by saying that an agreement to end the trade dispute may have to be delayed until after the American presidential election in November 2020.

Meanwhile, U.S. Treasury Secretary Steven Mnuchin told reporters that negotiations between Washington and Beijing were progressing, without a deadline for conclusion.

On the data front, the latest U.S. job report due later in the day is expected to generate some attention.

Gold traders are also awaiting the upcoming U.S. Federal Reserve meeting, which is scheduled next week. The Fed is expected to keep rates on hold at 1.50-1.75%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. factory activity, construction spending unexpectedly fall By Reuters


© Reuters. FILE PHOTO: A General Motors assembly worker loads engine block castings on to the assembly line at the GM Romulus Powertrain plant in Romulus,

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. factory activity contracted further in November amid a slump in new orders while construction spending unexpectedly fell, offering cautionary notes on an economy that had recently shown signs of growing at a moderate pace.

The reports on Monday came on the heels of upbeat October data on the goods trade deficit, housing and manufacturing that led economists to boost their gross domestic product estimates for the fourth quarter.

The Institute for Supply Management (ISM) said its index of national factory activity dropped 0.2 point to a reading of 48.1 last month. A reading below 50 indicates contraction in the manufacturing sector, which accounts for 11% of the U.S. economy.

The ISM index needs to break below the 42.9 level to signal a recession in the broader economy. Economists polled by Reuters had forecast the index rising to 49.2 in November from 48.3 in the prior month.

Though the ISM said business sentiment had improved, likely as the United States and China inch towards a partial trade deal, November’s reading marked the fourth straight month that the index remained below the 50 threshold.

Continued contraction in manufacturing could put the Federal Reserve in a difficult policy position. The U.S. central bank in October cut interest rates for the third time this year and signaled a pause in the easing cycle that started in July when it reduced borrowing costs for the first time since 2008.

Economists say without a complete trade deal, manufacturing is unlikely to rebound much and the sector could remain under pressure, with President Donald Trump on Monday restoring tariffs on steel and aluminum imports from Brazil and Argentina.

Manufacturing is also facing challenges from a domestic inventory bloat, slowing profit growth and weak overseas demand.

The ISM’s forward-looking new orders sub-index fell to a reading of 47.2 last month from 49.1 in October. A measure of export orders dropped 2.5 points to a reading of 47.9. The survey’s factory employment index fell 1.1 points to a reading of 46.6 last month.

The dollar was trading down against a basket of currencies, while U.S. Treasury prices rose. Stocks on Wall Street fell.

WEAK CONSTRUCTION

In a separate report on Monday, the Commerce Department said construction spending dropped 0.8% as investment in private projects tumbled to its lowest level in three years. Data for September was revised to show construction outlays declining 0.3% instead of rising 0.5% as previously reported.

Economists had forecast construction spending gaining 0.4% in October. Construction spending increased 1.1% on a year-on-year basis in October.

In October, spending on private construction projects dropped 1.0% to $956.3 billion, the lowest level since October 2016, after declining 1.1% in September. It was held down by a 0.9% decrease in spending on private residential projects. Outlays on residential construction dropped 1.1% in September.

The second straight monthly drop in residential construction is despite lower mortgage rates.

Mortgage rates have declined as the Federal Reserve has cut interest rates three times this year, softening the hit on the economy from a 16-month trade war between the United States and China, as well as slowing global growth.

Spending on private nonresidential structures, which includes manufacturing and power plants, plunged 1.2% in October to the lowest level since January 2018.

Investment in private nonresidential structures fell 1.0% in September. Outlays on private nonresidential structures have been depressed by a manufacturing downturn due to trade tensions and cheaper energy products.

Investment in nonresidential construction fell at its steepest pace in nearly four years in the third quarter. That contributed to business investment contracting for a second straight quarter.

Spending on public construction projects slipped 0.2% after jumping 1.9% in September. Spending on state and local government construction projects fell 0.3%. It surged 2.0% in September.

Outlays on federal government construction projects increased 0.6% in October to the highest level since May 2013. That followed a 0.7% rise in September.



Japan’s factory output posts biggest fall in almost two years By Reuters


© Reuters. FILE PHOTO: Chimneys of a factory are reflected in a traffic mirror at the Keihin industrial zone in Kawasaki, south of Tokyo

TOKYO (Reuters) – Japan’s industrial output slipped at the fastest pace since early last year in October, exposing widening cracks in the economy which faces a decline in domestic and foreign demand.

Factory output fell 4.2% in October from the previous month, trade ministry data showed on Friday, coming in below the median market forecast for a 2.1% fall and swinging from a 1.7% rise the previous month.

That was the fastest decline since January last year.

Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to decline 1.5% in November and rise 1.1% in December, the data showed.

Production was pushed down by a decrease in output of passenger cars and car engines, as well as general purpose and production machinery, the data showed.

The weak reading follows other gloomy data released this week that may further fuel calls on the government to craft a large stimulus package to keep the country’s economic recovery intact.

Official data on Thursday showed retail sales plunged at their fastest pace since early 2015 in October after the government went ahead with a twice-delayed sales tax hike that month, boding ill for domestic demand.

The hit to consumption from the tax hike, which was raised to 10% from 8%, was also exacerbated by a powerful typhoon that swept across eastern and central Japan last month.

A government official said output was negatively impacted by temporary shutdowns of factories due to the typhoon and slowing production of big-ticket items following the tax hike.

Factory activity and the broader economy are likely to remain under pressure as weak manufacturers’ confidence, soft retail consumption and a delayed pickup in global growth hit demand.

Japan’s decision to implement the sales tax hike is seen as a crucial move to repairing the industrial world’s largest public debt, which is more than twice the size of its $5 trillion economy.

But under the Bank of Japan’s current accommodative monetary policy, lawmakers could also step up calls for increased fiscal spending at a time when financing costs are extremely low.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Japan’s retail sales post worst fall in 4 years as tax hike hits demand By Reuters



By Daniel Leussink

TOKYO (Reuters) – Japan’s retail sales tumbled at their fastest pace in more than 4-1/2 years in October as a sales tax hike prompted consumers to cut spending, raising a red flag over the strength of domestic demand.

The Japanese government increased the nationwide sales tax to 10% from 8% on Oct. 1, in a bid to fix the industrial world’s heaviest public debt burden, which is more twice the size the country’s gross domestic product.

However, some analysts have warned the tax hike, previously postponed twice, could leave the economy without a growth driver amid a slump in exports and production.

Retail sales fell 7.1% in October from a year earlier, pulled down by weak demand for big ticket items such as cars and household appliances as well as clothing, trade ministry data showed on Thursday. The data showed department store sales were hit particularly hard.

The drop marked the biggest since a 9.7% fall in March 2015 and was worse than a 4.4% decline predicted by economists in a Reuters poll.

The decline indicated retail sales were falling at a fast pace after the sales tax hike kicked in last month. At the time of the previous tax hike in April 2014, retail sales fell 4.3% in that month.

Seasonally-adjusted retail sales dropped 14.4% month-on-month in October, the data showed.

The negative reading comes after separate data this month showed Japan’s economy nearly stalled in the third quarter, while exports in October shrank at their fastest pace in three years.

The gloomy conditions have led to calls for the government to compile a big spending package to keep the country’s fragile economic recovery on track.

Some analysts have said retail sales in October have been particularly weak due to poor weather, after a huge typhoon tore through central and eastern Japan, exacerbating the negative effect from the sales tax hike.

The previous tax hike to 8% from 5% in 2014 hit the broader economy hard as households tightened their purse strings after front-loading purchases before the hike.

But policymakers have said that the tax hike last month has not triggered such a big swing in demand, given the smaller extent of the hike and various government measures to help offset the hit to spending.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



China’s industrial profits post steepest fall in eight months By Reuters


© Reuters. Container ship departs from a port in Taicang

BEIJING (Reuters) – Profits at China’s industrial firms shrank at their fastest pace in eight months in October, tracking sustained drops in producer prices and exports and underscoring slowing momentum in the world’s second-largest economy.

Industrial profits fell 9.9% in October year-on-year to 427.56 billion yuan ($60.74 billion), data released by the National Bureau of Statistics showed on Wednesday, marking the biggest drop since January-February period and compared with a 5.3% decline in September.

China’s industrial sector has been under pressure in recent months as slowing demand at home and the fallout from the Sino-U.S. trade dispute undercut earnings.

“The big drop in October profits suggests the real economy is still facing plenty of difficulties,” said Nie Wen, economist at Shanghai-based Hwabao Trust, adding that the country’s industrial firms now face a double whammy of falling prices and higher funding costs.

“Profit growth is expected to stay negative for a period of time in the future, likely prompting authorities to unveil more growth-boosting measures in a gradual and restrained way.”

Profit declines for the manufacturing sector deepened in October, as margins contracted by 4.9% in the January-October period, compared with a 3.9% drop in the first nine months of the year. Meanwhile, mining sector profit growth also moderated.

For January-October, industrial firms’ profits fell 2.9% from a year earlier to 5.02 trillion yuan, compared with a 2.1% decline in January September.

China’s producer price index, seen as key indicator of corporate profitability, posted its sharpest fall in more than three years in October as prices for raw materials weakened. The country’s official manufacturing PM also showed a contraction in activity for the sixth straight month in September with new export orders falling for their 17th straight month.

China’s exports fell in annual terms for the third straight in October, albeit at a slower-than-expected rate.

Despite recent signs of progress in trade negotiations, there is growing uncertainty about whether Beijing and Washington can reach an agreement that would put off another U.S. tariff hike on Chinese goods scheduled to take effect on Dec 15.

“We expect industrial profit growth to remain sluggish, given the deteriorating growth outlook and elevated uncertainty amid the U.S.-China trade conflict,” said Nomura analysts in a note to clients after the data release.

With growth at near 30-year lows, China’s central bank has recently lowered some of its key lending rates while its governor has pledged to step up credit support and lower funding costs to help those parts of the economy that have struggled with financing.

China’s central bank warned on Monday of increasing downside risks for the economy as growth continues to falter despite various fiscal and monetary stimulus introduced this year.

A Reuters poll of analysts tipped China’s growth to slip to a near 30-year low of 6.2% this year and then ease further to 5.9% in 2020, underlining the challenges faced by Beijing.

Industrial firms’ liabilities increased 4.9% from a year earlier to 66.74 trillion yuan at end-October, compared with a 5.4% increase at end-September.

Private sector profits rose 5.3% in January-October, slowing from 5.4% for January-September.

The data covers firms with more than 20 million yuan in annual revenue from their main operations.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



GM’s electric pickup truck to go on sale fall 2021: CEO By Reuters



DETROIT (Reuters) – General Motors Co’s (N:) first electric pickup truck model will go on sale in the fall of 2021, the company’s top executive said on Thursday, around the same time as electric carmaker Tesla Inc’s (O:) own model is expected to debut.

“General Motors understands truck buyers and… people who are new coming into the truck market,” Chief Executive Officer Mary Barra said, speaking at an investor conference on the same day Tesla is due to unveil its long-anticipated pickup truck model.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Safe-Haven Gold Fall Despite Doubts Over Partial Trade Deal  By Investing.com


© Reuters.

Investing.com – Prices of the safe-haven gold fell on Thursday in Asia despite doubts over a phase on trade deal between the U.S. and China.

for December delivery on New York’s COMEX traded 0.2% lower to $1,470.75 by 1:20 AM ET (05:20 GMT).

U.S. President Donald is likely to sign a bill that supports Hong Kong protesters, Bloomberg reported citing a source familiar with the matter.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

Trump is now in a dilemma, as signing the bill could possibly imperil a long-awaited trade deal with Beijing. The deal was originally expected to be signed at a summit in Chile scheduled for mid-November, but the deadline was left in limbo after the conference was cancelled.

Reuters reported today that the two countries may not reach the partial trade deal this year.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

The U.S. Federal Reserve’s meeting minutes for October, published overnight, also received some focus.

The central bank said the stance of policy “likely would remain” where it is “as long as incoming information about the economy did not result in a material reassessment of the economic outlook.”

However, they also see “the downside risks surrounding the economic outlook as elevated, further underscoring the case for a rate cut” at the October meeting. They cited reduced business investment and exports resulting from “weakness in global growth and elevated uncertainty regarding trade developments.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Turkey’s Erdogan says interest rates to fall, inflation to hit single digits in 2020 By Reuters



ANKARA (Reuters) – Turkish President Tayyip Erdogan said on Saturday that interest rates will continue to fall, after the central bank last month cut rates to 14%, and added he expected inflation to hit single digits in 2020.

Speaking at a ceremony in Istanbul, Erdogan also said he expected the unemployment rate to fall once data for September is released, after unemployment rose slightly to 14% in the three months to September with the youth jobless rate hitting a record high.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil gains on U.S. crude stocks fall, OPEC comments on slower U.S. shale growth By Reuters


© Reuters. An oil pump is seen just after sunset outside Saint-Fiacre

By Florence Tan

SINGAPORE (Reuters) – Oil rose on Thursday after industry data showed a surprise drop in U.S. crude inventories, while comments from an OPEC official about lower-than-expected U.S. shale production growth in 2020 also provided some support.

Prices, however, were capped by mixed signs for oil demand in China, the world’s biggest crude importer, as industrial output rose more slowly than expected in October, but oil refinery throughput hit the second-highest level ever.

Brent futures () rose 47 cents, or 0.8%, to $62.84 per barrel by 0808 GMT, while U.S. West Texas Intermediate crude () gained 47 cents, or 0.8%, to reach $57.59.

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) Mohammad Barkindo said on Wednesday that there would likely be downward revisions of supply going into 2020, especially from United States shale, adding that some U.S. shale oil firms see output growing by only 300,000-400,000 barrels per day (bpd).

While Barkindo’s comments supported oil prices, there is not a clear way for OPEC to forecast oil production outside the group, Howie Lee, an economist at Singapore’s OCBC bank said.

“I don’t see much changes in supply so prices are still trading within the same range from the start of November,” he said.

Barkindo’s comments were also in contrast with forecasts by the U.S. Energy Information Administration (EIA) on Wednesday that U.S. oil production is on course to hit new records this year and next.

The American Petroleum Institute reported on Wednesday an unexpected drop in crude stockpiles by 541,000 barrels in the week to Nov. 8, against analysts’ expectations of an increase of 1.6 million barrels. Gasoline and distillates inventories increased, the API data showed. [API/S]

Official weekly EIA data is due at 11:00 a.m. EST (1600 GMT) on Thursday. Both reports were delayed a day for the U.S. Veterans Day holiday on Monday.

OPEC and its allies, including Russia, meet on Dec. 5-6 to discuss output policy and production curbs of 1.2 million bpd that have been in place since January with the aim of supporting crude prices. The pact runs to March 2020.

Barkindo said on Wednesday it was too early to say if further output cuts would be needed.

“They have made it quite clear that they are not reducing production further,” said OCBC’s Lee. “What Saudi can do now is to urge compliance among members especially Iraq and Nigeria. If they can comply, then they can talk about cuts.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



European shares fall on Hong Kong unrest, Trump’s disappointing trade comments By Reuters



(Reuters) – European shares retreated from four-year highs on Wednesday, as a highly anticipated speech by U.S. President Donald Trump gave no new clues on the progress of a trade deal with China, and as anti-government protests in Hong Kong raged on, denting sentiment.

The pan-European STOXX 600 index () fell 0.2% after positive German investor sentiment data and a slew of upbeat earnings had helped it scale highs not seen since 2015 on Tuesday.

Banks () as well as trade sensitive auto () and mining sectors () were among the biggest decliners, along with media-related stocks ().

Satellite company SES (PA:) slumped after a JP Morgan downgrade to neutral, while German commercial broadcaster ProSiebenSat.1 (DE:) slid 2.5% after Italy’s Mediaset (MI:) said it could increase its stake in the German peer, but ruled out a full takeover.

Spanish stocks () led losses among regional peers as investors were doubtful of a new coalition between Socialists and far-left Unidas Podemos formed on Tuesday. The unexpectedly fast preliminary agreement was formed between two parties that recently refused to work together.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.