Sweden for abandoning negative rates.
An unpleasant surprise for lovers of the Swedish krona was the introduction of a negative discount rate a year ago.
That is, now for keeping money on deposit in the national currency of Sweden, the account owner lost 0.5% per annum.
Quite a big loss for the deposit, if we add to this an inflation rate of 1.5% and a decline in the currency by more than 15% in relation to other monetary units.
According to recent statements, the Swedish government has strengthened the position of those who are ready to abandon such a policy, although it works great in the fight against deflation.
Recently, there has been an increase in Sweden's main economic indicators, which allows us to say that even the abandonment of negative rates will not lead to a sharp increase in inflation.
Bitcoin is gradually regaining its position.
A few years ago, a record rise in the price of cryptocurrencies came as a surprise to the army of skeptics; one bitcoin rose in price thousands of times in just a few years.
A year ago there was a huge correction, as a result of which the electronic currency lost half of its value.
It would seem that further growth is not possible, but recently Bitcoin has again shown stable growth, the crypto currency has risen in price by 5%.
Now its rate is 884 US dollars per bitcoin.
Many experts associate the current trend with the decline of the Chinese Yuan; the population is looking for alternative sources of investment and often choose cryptocurrency.
Demand for the US dollar is growing in China.
The unprecedented strengthening of the US dollar caused an increase in demand around the world, even those who are usually pessimistic about the US currency became interested in it.
China was no exception; demand began to grow from the beginning of the year, and after Trump’s victory in the elections, the trend intensified even more.
There are several reasons for this situation:
1. Firstly, this is a massive withdrawal of capital from the territory of the Middle Kingdom, which only intensifies with the slowdown in economic growth.
2. Distrust of the yuan - the population has traditionally become accustomed to trusting the US dollar and not trusting the national currency, which can either grow rapidly or fall even more rapidly.
Dollar-euro parity will soon be achieved.
Not everyone remembers the times when 1 euro cost less than a dollar; everything changed after the terrorist attacks in New York fifteen years ago.
After the notorious events, the US dollar fell for a long time against most major world currencies.
How justified was this drop? After all, in reality, the American economy did not suffer damage that would lead to a two-fold drop in the US currency.
Confirming this fact over the past few years, the US dollar is confidently regaining its position in world markets.
Now the exchange rate of the euro/dollar currency pair has already reached 1.03 dollars per euro, many analysts claim the possible achievement of parity between these two currencies.
Prospects for growth in the price of shares of defense enterprises.
Another relative calm has ended, and the world is once again entering a period of escalation. Most countries are dramatically increasing their defense budgets.
EU countries spend 219 billion a year on defense, even for Europe this is quite an impressive amount, and in 2017 most EU members will increase their military budgets by 15-20%.
The Baltic states are also trying to keep up with their colleagues; starting next year, the Baltic countries will increase military spending by 50%.
After that, the total cost will be $1.45 billion.
Investments in Chinese tourism.
The tourism sector has been developing quite rapidly in recent years, mainly due to the popularization of active recreation.
The tourism market has enormous prospects and is valued at hundreds of billions of dollars; it is not for nothing that this industry has become a priority in many countries.
Recently, the Chinese government announced unprecedented investments in the tourism sector; in total, up to $290 billion will be allocated for the tourism business.
The financing program provides for a phased receipt of funds; the entire amount will be disbursed by 2020.
At the same time, the average annual investment will be about $100 billion.
Black Swans 2017.
The term “Black Swans” is familiar to almost any stock market player; it characterizes an unexpected event that significantly affects the economy or finances.
It is Black Swans that cause the maximum movement of rates on the currency exchange or the maximum change in quotes on the stock market.
What surprises can the coming 2017 bring us, according to specialists from one of the largest holding companies.
1. US economic growth – Now the US economy is at a fairly low level, that is, a change in the president and government policies can lead to an acceleration of economic growth.
Declining unemployment rate in the US.
The unemployment rate has always been one of the most important indicators that characterize the country's economy.
An increase in unemployment in most cases causes a depreciation of national currency, and conversely, a decrease in the value of this indicator can cause a strengthening of the national currency.
The latest news from the United States of America reports a positive trend, thanks to which unemployment in the United States has dropped to a nine-year low.
Now this figure is 4.6%, which is 0.3% lower than the data for October 2016, the message was made on Friday, December 2.
The UK still pays.
The scandalous exit of Great Britain from the European Union continues to be one of the main news of world news agencies.
The event is quite ambiguous for both the European Union and the UK; sales markets are closely connected and therefore the countries are doing their best to maintain established relations.
To maintain economic ties, the UK even agrees to pay contributions as a member of the European Union, this statement was made by British Minister David Davis.
The main task of the country’s government’s actions is to prevent the abolition of duty-free tariffs, which could lead to an increase in prices for goods and, as a result, a refusal to extend them in 2017.
The price of gold has hit investors.
There are a lot of investment companies with thousands of clients and billions of dollars in capital, the main object of investment being investments in gold.
After all, over the course of several decades, this metal has been steadily rising in price; what could be more profitable and reliable than gold?
This strategy was justified until recently; since 2013, the price of gold has dropped from $1,700 per ounce to $1,200. A particularly sharp drop, more than 7%, has been observed over the past few months.
This situation causes an outflow of funds from investment funds specializing in gold purchases.
Currency reform in India and its consequences.
For several weeks now, news about currency reform in India has been one of the key events in news agencies; let us remind you that we are talking about the withdrawal of the largest banknotes from circulation.
If in the first days the very fact of the reform, its goals and objectives were discussed, now more attention is paid to the results. What is happening to the Indian economy now and what impact is this having on global markets?
Disappointing news from Japan and the fall of the Yen.
Recently, Japan has been increasingly worried about natural disasters; before the country has had time to recover from one shock, a new disaster brings trouble.
First of all, this is a significant drop in exports; in October, compared to last year, exports of Japanese goods fell by more than 10%.
Moreover, this is not a short-term decline, but a long-term trend; a decrease in demand for goods from Japan has been observed for more than a year.
The main reasons for this situation were the general deterioration in the global economy, which caused a sharp drop in demand, consumers are now buying essential goods, unfortunately, electronics do not fall into this category.
A new jump in oil prices.
Good news has been rare lately, so the sharp rise in oil prices came as a pleasant surprise to many Russians.
I would like to hope that the trend will continue and the price will reach $100 in the foreseeable future.
In the meantime, on Tuesday, December 22, 2016, the price of oil was just a couple of cents short of breaking the psychological mark of $50 per barrel.
The following days there was a minor correction, after which we can expect a resumption of the upward trend.
Perhaps a positive role will be played by the decision to stabilize the energy market, which will be made by the countries that are the largest oil and gas producers.
Gold news.
The price of the precious metal has always pleased those who decided to invest money in gold with surprises, and this time there were some surprises.
As soon as forecasts became known in which Trump would win the US presidential election, the price of gold increased, and it seemed that a fairly stable trend had formed.
The surprise was the price drop after the news from India; who would have thought that the fight against the shadow economy could bring down the gold market.
After the Indian government decided to withdraw from circulation and exchange the highest denomination banknotes, Indian investors had no time for buying gold.
And as you know, this country is the largest consumer of precious metal and often forms market demand.
US GDP growth forecast.
No matter what skeptics say about Trump’s election, most analysts have adjusted their forecasts for US economic growth.
According to experts, US GDP growth is expected to be 2.2% in 2017; according to preliminary forecasts made earlier, this figure was at 1.5%.
That is, with Trump, the American economy will grow 0.7% faster next year, which is quite a lot, given its size.
An equally optimistic long-term forecast is that growth is expected at 2.4% in 2018.
The forecasts are based on the plans of the new president, which he announced after his election, but in fact these are only plans, and they do not always come true.
US government bonds – a downward trend is just around the corner.
No matter how much there is talk about the insolvency of the economy of the United States of America and its proximity to collapse, US government bonds still remain one of the most attractive investment instruments.
Moreover, these securities are mainly used by Central Banks to create reserves that stabilize national currency units.
Recently, the yield on government bonds has increased significantly and reached 1.734%, in fact this is the maximum for 2016.
It would seem that an increase in yield clearly leads to an increase in price, but despite this, Russia and China began to gradually reduce the share of this type of securities in their reserves.
The Russian portfolio lost weight from 89.1 to 76.5, that is, by 12.6 billion, while China sold bonds worth $28.1 billion. It is clear that these amounts are quite insignificant, but still they can serve as the first bell to the beginning of a mass sale and the formation of a downward trend.
The rise in oil prices stimulates the ruble.
No matter how much skeptics claim cheap oil, their expectations were not met; Brent oil began to rise in price and reached $46 per barrel, while Light is selling at $45.
The reason for the rise in price was statements about the intentions of OPEC members to develop a plan to reduce oil production.
This information came from one of the employees of the Egyptian Ministry of Oil Production.
According to him, this issue will be the key one at the December summit; low prices do not suit the majority of OPEC participants.
The second reason that influenced the increase in oil prices was the terrorist attacks in Nigeria, due to which key oil pumping routes were damaged.
Trading volumes on American exchanges remain high.
As you know, one of the most significant indicators that influence the strength of a trend is volumes. They are the ones who can confirm or refute the existing trend.
The US elections followed by the election of Donald Trump as President caused a downward trend in most securities, market volatility reached unprecedented proportions.
According to the latest data, trading volumes on the New York Stock Exchange continue to remain high - on November 15, transactions were concluded with 800,000,000 shares, this figure is 45 percent higher than average volumes.
True, a growth trend is beginning to be visible, for example, the total number of securities for which the price has increased is 10% more than the number of those who have lost weight.
It can be argued that the market is gradually recovering from the shock and it is time to think about buying transactions.
Oil and the crisis of the Russian stock exchange
A record collapse in oil prices also created quite a lot of panic around the world. If earlier analysts said with a grin that the price of oil would not fall below $45, then today’s price of $30 per barrel hit the main indices of oil-producing countries very hard. So, by looking at the main Moscow RTS index, you can clearly see the consequences:
Collapse on world stock exchanges
The past 2015 and the beginning of 2016 were simply a shock period for large investors
around the world.
Many traders and analysts knew about collapses on world financial exchanges only from history in textbooks and financial magazines, and few of us could imagine that we would be able to see the so-called collapse with our own eyes.
On various information resources one could hear how the indices of the superpowers were rapidly falling, how the fall of the stock exchanges of certain states actively influenced the indices of other states, and it seemed that due to the loss of only one element, the entire financial system sank one after another along the chain.
Forex in Russia after the New Year, first impressions
The new law of the Russian Federation on the regulation of dealer activities in the Forex market has simply created
a huge panic among traders.
The fear of losing their money due to the banal blocking of bank accounts of brokerage companies by the National Bank of Russia led to the fact that clients began to massively withdraw their funds from their accounts and uncontrollably wait for the financial world to turn upside down in the new year.
However, despite the enormous panic and fear of traders, almost all brokers worked as usual and there were no disturbances on their part at all.
Only a few directors spoke out about the flawed nature of this law and hinted at consequences due to which even honest companies that paid all taxes to the state treasury would be forced to move to another jurisdiction, since they simply would not be able to compete with foreign competitors.
Good news on binary options.
Trading in financial markets has already firmly established itself as one of the most popular ways to make a profit.
At the same time , many experts agree that at the moment the most promising trading platform is the binary options market.
It allows you to earn money just by guessing the direction of the price of a particular asset, which does not require any special skills or financial education.
Only up or down! Moreover, the duration of transactions when trading binary options starts from 30 seconds, during which it is quite possible to double your deposit.
Recently, the attention of the Internet community has been fully captured by the company Verum Option, which has made a breakthrough in the field of binary trading. Skillfully combining all the achievements of Western European and American brokers with her own unique developments, she proposed a fundamentally new approach to trading.
What awaits Forex in Russia
The recently adopted law on the regulation of dealer activities in the Forex market has created a lot
of hype among traders and managers of brokerage companies.
Because of this law, rumors spread that most brokerage companies simply would not be able to obtain a license, which means that the companies would simply be liquidated.
The fear of losing money has forced a very large number of traders to withdraw their funds and move to companies that are under another jurisdiction.
The law itself will come into force on January 1, 2016, so you should figure out in detail whether it’s worth risking your deposit with the company or just withdrawing all your money during a panic. Is this law really so destructive for DCs and their clients and what awaits Forex in Russia in 2016?