• MTS Economic News_20171225

    25 Dec 2017 | Economic News

• The euro slipped against the dollar on Friday after Catalan separatists won a regional election, prompting worries about the possible break-up of the euro zone’s fourth-largest economy.

The euro slid 0.1 percent to $1.1858. But Europe’s common currency was still up nearly 13 percent this year, on track for its best yearly performance in 14 years.

The dollar index was flat at 93.316. For the year, the index was down about 8.5 percent. While the dollar was steady against the Japanese yen at 113.30.

• Bitcoin plunged by 30 percent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to a peak close to $20,000 prompted warnings by experts of a bubble.

After falling to as low as $11,159, it recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. It is down around 25 percent this week, its largest weekly loss since April 2013.

• U.S. President Donald Trump signed Republicans’ massive $1.5 trillion tax overhaul into law on Friday, cementing the biggest legislative victory of his first year in office, and also approved a short-term spending bill that averts a possible government shutdown.

Trump said he wanted to sign the tax bill before leaving Washington on Friday for his Mar-a-Lago estate in Florida, rather than stage a more formal ceremony in January, so he could keep his promise to finish work before Christmas.

The tax package, the largest such overhaul since the 1980s, slashes the corporate rate from 35 percent to 21 percent and temporarily reduces the tax burden for most individuals as well.

• China’s trade with North Korea edged up to $388 million in November but remained around its lowest levels this year, data showed on Saturday, as tough sanctions continue to slow business with its isolated neighbor.

The total is up 15.9 percent from October’s $334.89 million but far lower than $613.2 million a year ago, according to data released by China’s General Administration of Customs.

• Oil prices rose in light volumes on Friday, steadying near their highest levels since 2015 on pledges from OPEC leader Saudi Arabia and non-OPEC Russia that any exit from crude output cuts would be gradual.

Brent crude futures, the international benchmark for oil prices, ended the session up 35 cents at $65.25 a barrel, its highest close since June 2015.

U.S. West Texas Intermediate (WTI) crude futures settled 11 cents higher at $58.47 a barrel. WTI has also been touching values not seen since mid-2015 over the past two months.

• The latest U.N. sanctions against North Korea are an act of war and tantamount to a complete economic blockade against it, North Korea’s foreign ministry said on Sunday, threatening to punish those who supported the measure.

The U.N. resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year and, in a last-minute change, demands the repatriation of North Koreans working abroad within 24 months, instead of 12 months as first proposed.

• Oil producers will discuss exit strategy for their deal on cutting output once the market moves closer towards being balanced, Russian Energy Minister Alexander Novak said in remarks published on Saturday.


Reference: Reuters

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