• MTS Economic News_20170628

    28 Jun 2017 | Economic News


• Against the perceived safe-haven yen, the dollar slipped 0.3 percent to 112.120 after rising as high as112.285 yen.

The dollar index, which gauges the U.S. currency against a basket of six major counterparts, edged up 0.1percent to 96.442 but was still well below its previous session high of 97.447.

The euro was up 0.4 percent at $1.1339. It notched a 10-month high of $1.1345 after Draghi, speaking to a conference in Portugal, said the ECB could adjust its policy tools as economic prospects improve in Europe.

• U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.

Yellen declined to comment when asked about her relationship with Trump but said she had a good working relationship with U.S. Treasury Secretary Steve Mnuchin.

She also reiterated her view that the U.S. central bank would continue to raise interest rates only gradually.

She said the stockpile of bonds the Fed amassed to help the U.S. economy through the crisis would be shrunk "gradually and predictably."

• Federal Reserve Board Vice Chair Stanley Fischer on Tuesday warned that the U.S. central bank must remain vigilant in monitoring financial stability risks.

"While significant progress has been made in recent years toward making the financial system more stable and resilient, we should not ever be complacent," Fischer said in prepared remarks to an International Monetary Fund workshop on financial surveillance and communication in Washington.

• With inflation low and wages showing little sign of an upward surge, the U.S. Federal Reserve should not be raising interest rates, Minneapolis Fed President Neel Kashkari said on Tuesday.

• U.S. Senate Republican leader Mitch McConnell has decided to put off a planned vote on a healthcare bill to repeal Obamacare until after the Senate's July 4 recess, CNN reported on Tuesday.

McConnell and other Republican leaders have been pressing to round up enough support for the healthcare legislation, but still appeared to be several votes short.

• President Donald Trump is growing increasingly frustrated with China over its inaction on North Korea and bilateral trade issues and is now considering possible trade actions against Beijing, three senior administration officials told Reuters.

• The International Monetary Fund on Tuesday cut its growth forecasts for the U.S. economy to 2.1 percent for both 2017 and 2018, dropping its assumption that President Donald Trump's tax cut and fiscal spending plans would boost growth.

The IMF, after a review of U.S. economic policy, said the Trump administration was unlikely to achieve its goal of annual GDP growth of 3 percent over a sustained period, partly because the labor market is at a level consistent with full employment. The U.S. economy grew 1.6 percent last year.

• A major global cyber attack on Tuesday disrupted computers at Russia's biggest oil company, Ukrainian banks and multinational firms with a virus similar to the ransomware that last month infected more than 300,000 computers.

• China's economy continued to improve in the second quarter, with corporate profits rising and hiring up, a private survey showed, but it suggested the Asian giant may have to brace for tougher times ahead even though firms have been able to weather a tighter financing environment.

• Oil prices rose nearly 2 percent and hit a one-week high on Tuesday, boosted by a weaker dollar, short covering and expectations that crude inventories in the United States may decline for a third consecutive week.

Brent crude futures LCOc1, the international benchmark for oil prices, gained 82 cents, or 1.79 percent, to settle at $46.65 per barrel. U.S. crude futures CLc1 ended the session up 86 cents, or about 1.98 percent, at $44.24 per barrel.

Brent touched a one-week high of $47.06. U.S. crude hit its highest since June 19 at $44.44.

Reference: Reuters, CNN

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