Pound Jumps More Than 2% on Election Prediction; Yuan Surge on Trade News By Investing.com


© Reuters.

Investing.com – The British pound jumps more than 2% against the U.S. dollar after a U.K. election exit poll suggested that Boris Johnson’s Conservative Party is projected to win the election.

The GBP/USD pair jumped 2.3% by 11:15 PM ET (03:15 GMT).

“If the Conservatives do win a majority, passing a Brexit divorce deal in the coming weeks would remove any risk of a no-deal Brexit on 31st January, reduce the immediate uncertainty and lift business investment at least a bit,” said Paul Dales, chief U.K. economist at Capital Economics, in a CNBC report.

The official results will be declared later in the day.

Meanwhile, the Chinese yuan also rallied on reports that U.S. President Donald Trump approved a phase-one trade deal with China. Signing of the deal averts the planned introduction of new tariffs on Chinese goods.

In return, Beijing will buy more agricultural goods as part of the trade deal, according to Bloomberg that cited people familiar with the matter. Some existing duties on Chinese products could also potentially be reduced too, the report said.

The onshore rate advanced as much as 1% per dollar following the news, the strongest since Aug. 2 on an intraday basis. The USD/CNY pair last traded at 6.9683, down 0.2%.

The safe-haven yen, on the other hand, fell as risk appetite resumed. The USD/JPY pair gained 0.3% to 109.57. While not a directional driver, the Bank of Japan’s Tankan survey showed business confidence at big Japanese manufacturers worsened in the three months to December to its lowest level in nearly 7 years.

Meanwhile, the AUD/USD pair and the NZD/USD pair both climbed 0.3%.

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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Oil Hits 3-Month High, Catching up on U.S.-China News By Investing.com


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Investing.com – The oil market has bought Trump’s China deal more than the stock market has.

Crude futures hit three-month highs on Friday, with U.S. West Texas Intermediate breaching the $60 per barrel resistance long eyed by oil bulls and U.K. crossing the key $65 milestone, after the Trump administration announced a China trade deal with scant details.

On Wall Street, stocks fell from early highs in volatile trading as investors remained confused about signs of trade progress between the two countries after 17 months of tit-for-tat tariffs on hundreds of billions of dollars of imports and often acrimonious remarks that had weighed not just on their individual economies, but also world growth.

NYMEX-traded , the U.S. crude benchmark, settled up 89 cents, or 1.5%, at $60.07 per barrel. It earlier reached $60.45 per barrel, a level not seen since the September attack on Saudi Arabia’s oil facilities that briefly knocked out about 5% of world supply.

ICE-traded , the global oil benchmark, settled up $1.02, or 1.6%, at $65.22, after a three-month high at $65.75.

For the week, WTI was up more than 1%, extending last week’s 7% gain that put on track to a near 9% rise for December, its strongest month since June. Year-to-date, the U.S. crude benchmark has risen nearly 32%.

Brent gained 1% on the week, 4% on the month and 21% on the year.

“Oil is probably catching up after playing laggard to Wall Street, which had gone gung-ho in recent days on the hype over the likelihood of a trade deal,” said Adam Sarhan, chief executive at 50 Park Investments in Orlando, Florida.

“With stocks, it’s a classic case of buy-the-rumor-sell-the-fact. And that’s accentuated by the fact that there are scant details so far on this deal, and the devil is really in the details with something like this.”

In separate announcements, China and the U.S. said they had struck their long-awaited phase-1 deal, the first formal steps toward de-escalating a fight that has weighed on the world economy for a year and a half.

With no telecast of a signing ceremony, the two sides also created the notion of an announcement done for political expediency. President Donald Trump appears eager to announce as many wins as possible amid his impeachment inquiry in Congress, while China’s President Xi Jinping is under pressure to halt additional U.S. tariffs due on some $165 billion of Chinese imports beginning this weekend.

Indeed, Trump said he would not proceed with the new tariffs on China while the Office of the U.S. Trade Representative said the administration will be maintaining its earlier tariffs of 25% on about $250 billion of Chinese imports, along with 7.5% duty on about $120 billion of other goods.

Oil prices were weakened earlier in the week after a surprise rise in and huge builds in and .

Crude markets were also weakened by the Paris-based International Energy Agency’s monthly report that said global inventories could rise sharply through March despite an agreement by OPEC and its allies to remove as much as 2.1 million barrels, or 2.1% of global supply, each day.

OPEC, in its own monthly report this week, said it expected a small oil supply deficit instead for next year.



Facebook issues corrective label on user’s post under new Singapore fake news law


SINGAPORE (Reuters) – Facebook (FB.O) said on Saturday it had issued a correction notice on a user’s post at the request of the Singapore government, but called for a measured approach to the implementation of a new “fake news” law in the city-state.

FILE PHOTO: Silhouettes of laptop users are seen next to a screen projection of Facebook logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

“Facebook is legally required to tell you that the Singapore government says this post has false information,” said the notice, which is visible only to Singapore users.

The correction label was embedded at the bottom of the original post without any alterations to the text.

The Singapore government said on Friday it had instructed Facebook “to publish a correction notice” on a Nov. 23 post which contained accusations about the arrest of a supposed whistleblower and election rigging.

Singapore, which is expected to call a general elections within months, said the allegations were “false” and “scurrilous” and initially ordered user Alex Tan, who runs the States Times Review blog, to issue the correction notice on the post.

Tan, who does not live in Singapore and says he is an Australian citizen, refused and authorities said he is now under investigation. Reuters could not immediately reach Tan for comment.

“As required by Singapore law, Facebook applied a label to these posts, which were determined by the Singapore government to contain false information,” a spokesman for Facebook said in an emailed statement.

“As it is early days of the law coming into effect, we hope the Singapore government’s assurances that it will not impact free expression will lead to a measured and transparent approach to implementation.”

Some Singapore users however said that they could not see the correction notice. Facebook could not immediately explain why the notice was unavailable to some users.

Facebook often blocks content that governments allege violate local laws, with nearly 18,000 cases globally in the year to June, according to the company’s “transparency report.”

Two years in the making and implemented only last month, Singapore’s law is the first to demand that Facebook publish corrections when directed to do so by the government.

The Asia Internet Coalition, an association of internet and technology companies, called the law the “most far-reaching legislation of its kind to date”, while rights groups have said it could undermine internet freedoms, not just in Singapore, but elsewhere in Southeast Asia.

In the only other case under the law, which covers statements that are communicated in the country even if they originate elsewhere, opposition political figure Brad Bowyer swiftly complied with a correction request.

The penalties range from prison terms of as much as 10 years or fines up to S$1 million ($733,192).

Reporting by Fathin Ungku and John Geddie; Editing by Raju Gopalakrishnan and Richard Pullin



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Singapore tells Facebook to correct user’s post in test of ‘fake news’ laws


SINGAPORE (Reuters) – Singapore instructed Facebook on Friday to publish a correction notice on a user’s social media post under a new ‘fake news’ law, raising fresh questions about how the firm will adhere to government requests to regulate content.

FILE PHOTO: Silhouettes of laptop users are seen next to a screen projection of Facebook logo in this picture illustration taken March 28, 2018. REUTERS/Dado Ruvic/Illustration/File Photo

The government said in a statement that it had issued an order requiring Facebook “to publish a correction notice” on a Nov. 23 post which contained accusations about the arrest of a supposed whistleblower and election rigging.

Singapore said the allegations were “false” and “scurrilous” and initially ordered user Alex Tan, who runs the States Times Review blog, to issue the correction notice on the post. Tan, who does not live in Singapore and says he is an Australian citizen, refused and authorities said he is now under investigation.

Facebook declined to comment and Tan’s post was unaltered as of mid-afternoon on Friday.

Facebook (FB.O) has been under fire in recent years for its lax approach to fake news reports, state-backed disinformation campaigns and violent content spread on its services, prompting calls for new regulations around the world.

It is also frequently criticized for being too willing to do the bidding of governments in stamping out political dissent.

Facebook often blocks content that governments allege violate local laws, with nearly 18,000 cases globally in the year to June, according to the company’s “transparency report.”

But the new Singapore law is the first to demand that it publish corrections when directed to do so by the government, and it remains unclear how it plans to respond to the order.

The case is the first big test for a law that was two years in the making and came into effect last month.

The Asia Internet Coalition, an association of internet and technology companies in the region, called the law the “most far reaching legislation of its kind to date”, while rights groups have said it could undermine internet freedoms, not just in Singapore, but elsewhere in Southeast Asia.

Facebook has previously said it was “concerned with aspects of the new law which grant broad powers to the Singapore executive branch to compel us to remove content they deem to be false and to push a government notification to users”.

In the only other case under the law, which covers statements that are communicated in the country even if they originate elsewhere, opposition political figure Brad Bowyer swiftly complied with a correction request.

The penalties range from prison terms of as much as 10 years or fines up to S$1 million ($735,000).

Singapore, ruled by the People’s Action Party since independence in 1965, is widely expected to hold a general election within months, though no official date has been set.

Reporting by John Geddie and Fathin Ungku; Editing by Clarence Fernandez & Simon Cameron-Moore



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Gold Prices Slip Amid Upbeat Trade News By Investing.com


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Investing.com – Prices of the safe-haven gold traded modestly lower on Wednesday in Asia amid upbeat trade news.

slipped 0.1% to $1,466.05 by 1:20 AM ET (05:20 GMT). The fall came as global risk appetite improved on the back of reports that the top trade negotiators from the U.S. and China held a telephone conversation on Monday. They had “reached a consensus on properly resolving latest issues.,” according to press in China.

The Ministry of Commerce said today that the two sides had another phone call on Tuesday to discuss how to “resolve core issues.”

However, losses of the yellow metal were limited as traders remained cautious over whether a trade deal could truly be achieved in the near future.

Each time the three officials have spoken over the past month, markets have gotten their hopes up that the phase one was a done deal, only to realize later it wasn’t.

Meanwhile, U.S. President Donald Trump said overnight that Washington and Beijing are in the “final throes of a very important deal.”

However, he also reiterated Washington’s support for protesters in Hong Kong, a sensitive subject that could potentially anger China.

“The main influencer for gold is still safe-haven sentiment tied to trade talks,” said Eric Scoles, precious metals strategist at RJO Futures in Chicago.

“The trade talks have been somewhat optimistic lately, but overall quiet this week, and the market is likely to remain somewhat neutral with it being a holiday week in the U.S.,” Scoles said. “As of right now, I think gold needs some big headlines to set this market moving one way or the other.”

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.



U.S. Dollar Unchanged Amid Latest Trade News By Investing.com


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Investing.com – The U.S. dollar was little changed on Friday in Asia as traders evaluated the latest trade news.

Gao Feng, China’s Ministry of Commerce spokesperson, insisted again at a weekly press conference that the U.S. should roll back tariffs as part of a “phase one” agreement.

“The trade war was begun with adding tariffs, and should be ended by canceling these additional tariffs. This is an important condition for both sides to reach an agreement,” Gao said.

“If both sides reach a phase one agreement, the level of tariff rollback will fully reflect the importance of the phase one agreement,” Gao said, noting the two countries’ trade delegations are in deep consultations on this topic.

Meanwhile, White House economic adviser Larry Kudlow said Washington is “getting close” to a trade deal with Beijing.

Citing unnamed people close to the talks, the Financial Times said an agreement may not be reached in time to avoid a new round of U.S. tariffs taking effect on Dec. 15.

U.S. President Donald Trump and Chinese leader Xi Jinping were widely expected to sign the deal at the Asia-Pacific Economic Cooperation summit in Santiago, but Chile canceled the event in late October due to domestic unrest.

The U.S. dollar index was unchanged at 98.020 by 11:13 PM ET (03:13 GMT).

The USD/CNY pair slipped 0.2% to 7.0076.

The People’s Bank of China (PBOC) unexpectedly extended loans through its medium-term lending facility (MLF) on Friday, while keeping the interest rate on one-year MLF loans unchanged at 3.25%.

The PBOC also said it has injected 200 billion yuan ($28.60 billion) into financial institutions via the liquidity tool.

The NZD/USD pair gained 0.1% to 0.6387. The New Zealand dollar had jumped on Wednesday when the country’s central bank unexpectedly left interest rates steady.

The Australian dollar rebounded 0.2% to 0.6795 against the U.S. dollar after falling in the previous session amid an unexpected rise in unemployment.

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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Why More Demand for Japanese Stocks Is Bad News for the Yen By Bloomberg



(Bloomberg) — The yen has been the worst-performing major currency in the past month as optimism over U.S.-China trade talks and Brexit sapped demand for havens. Another reason it is declining is more curious: increased trading of Japanese stocks by overseas investors.

The dynamics work like this: foreign funds have boosted trading of Japanese shares but they are unwilling to take on currency risk at the same time. For that reason they choose to hedge purchases for foreign-exchange movements, which typically involve selling yen via forward contracts that roll over periodically. This constant renewal of hedging creates a steady drip-feed of negative pressure on the yen.

“Most foreign investors in Japan’s stock market are hedge funds and their pairing of equities trading with the yen is a significant factor,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:) Securities Co. in Tokyo. “The Japanese stock market is a great place for short-term dealing with its deep liquidity and well-established infrastructure for high-frequency trades.”

The proportion of Japanese share trading by overseas funds has climbed to the highest in almost a decade and they now account for more than 60% of transactions, according to data from Japan Exchange Group Inc. The dominance of overseas funds is even more pronounced in derivatives, where they are responsible for almost 80% equity futures transactions.

“Overseas speculators usually try to avoid taking both equity and currency risks,” said Takahiro Sekido, a former Bank of Japan official who is now a strategist at MUFG Bank Ltd. in Tokyo. “Their currency hedging supports the inverse correlation between the yen and Japanese stocks.”

Hedging is typically done by selling currency forwards or combining purchases of a currency in the spot market with a simultaneous sale in the forward market, known as a foreign-exchange swap. Such transactions between Tokyo-based banks and offshore market participants have more than doubled since 2006, data from the Tokyo Foreign Exchange Market Committee show.

The increase in hedging — along with the waning of haven demand and the Bank of Japan’s accommodative monetary policy — has seen the yen weaken 1.8% against the dollar in the past month. The currency dropped to 109.29 per dollar last week, the lowest since Aug. 1, before trading at 108.87 late on Tuesday in Tokyo.

The increase in overseas trading of Japanese stocks and the related currency hedging is playing into another long-running theme: an inverse correlation between the yen and the Stock Average.

The inverse correlation, which has prevailed almost continuously since 2006, is now close to the highest since November 2007, according to data compiled by Bloomberg.

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. Dollar Rises on Upbeat Trade News By Investing.com


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Investing.com – The U.S. dollar was higher on Monday after upbeat trade comments helped lift sentiment.

U.S. Commerce Secretary Wilbur Ross told Bloomberg on Sunday that U.S.-based companies would be issued with licenses to sell to Chinese tech giant Huawei “very shortly,” adding that the government had received some 260 requests from U.S. suppliers for exemptions from the existing restrictions on selling to the company. Huawei had been blacklisted on national security grounds amid concerns from the White House over its connection to the Chinese government, a move that many linked to the broader trade war with China.

Meanwhile on Friday, Washington and Beijing indicated that progress had been made on agreeing to a trade deal, with U.S. officials indicating that a deal could be signed this month.

The , which measures the greenback’s strength against a basket of six major currencies, gained 0.1% to 97.160 as of 10:50 AM ET (14:50 GMT).

The safe-haven Japanese yen was lower with up 0.3% to 108.48.

Elsewhere, sterling fell as the U.K. prepared for an election in December. A spokesperson for Prime Minister Boris Johnson said the government must be prepared to leave the EU without a deal on Jan. 31 and that a Brexit transition period would not be extended after that.

fell 0.2% to 1.2911 while inched down 0.1% to 1.1153. dipped 0.1% to 0.6802, while tumbled 1.8% to 14.7513 after Moody’s held back from downgrading South Africa’s debt to junk. The outlook was instead lowered to negative, even as the country’s budget forecasts showed its financial situation is under pressure.

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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Gold Prices Trade Higher as Markets Digest Brexit News By Investing.com


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Investing.com – Gold prices traded higher on Wednesday in Asia as markets digested the latest Brexit news.

U.S. rose 0.4% to $1,492.85 by 1:33 AM ET (05:33 GMT).

On Tuesday, U.K. lawmakers rejected the government’s proposed timetable for passing legislation to ratify Prime Minster Boris Johnson’s deal to depart from the EU.

Another Brexit delay is expected now after the parliamentary defeat, but analysts remain optimistic that the worst scenario, which is the U.K. leaving the bloc without a deal, may be avoided.

On the Sino-U. trade front, Chinese Vice Foreign Minister Le Yucheng said this week that Beijing and Washington have made some progress in trade talks, adding that as long as both sides respected each other, all problem were resolvable.

Some expect U.S. President Donald Trump and Chinese leader Xi Jinping to sign the first phase of a trade agreement at the Asia-Pacific Economic Cooperation summit in Chile in mid-November.

Unrest in Hong Kong also received some attention, after the Financial Times reported overnight that Beijing is considering replacing Hong Kong’s chief executive, Carrie Lam, by March.

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 Prices Fall Despite Positive Sino-U.S. Trade News By Investing.com


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Investing.com – Oil prices turned lower on Tuesday in Asia despite signs of easing tensions between China and the U.S., the world’s biggest oil importers.

U.S. lost 0.3% to $53.37 by 1:12 AM ET (05:12 GMT). International also fell 0.2% to $58.84.

Oil prices traded higher earlier in the day after U.S. President Donald Trump said during a Cabinet meeting at the White House that China has begun buying American agriculture products.

Le Yucheng, China’s Vice Foreign Minister, said the two sides have achieved some progress in trade negotiations. “The world wants China and the United States to end their trade war,” he said.

Some believe Trump and Chinese President Xi Jinping will sign a partial trade deal in Chile next month during the Asia-Pacific Economic Cooperation meetings.

“Commodity markets were cautiously optimistic amid signs that a trade deal was close to being signed by the United States and China,” ANZ bank said in a note cited by Reuters.

“Crude oil prices remained in the doldrums, with ongoing economic weakness weighing on sentiment,” ANZ Bank added.

However, oil markets gave up their gains and traded in the red on Tuesday afternoon. U.S. Commerce Secretary Wilbur Ross said overnight that the partial trade deal doesn’t necessary has to be finalised next month, emphasizing the need to get the right deal.

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.