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West Australian
23-05-2025
- Business
- West Australian
Australian shares on track to make the week a winner
The Australian share market is set to finish the week higher, after Wall Street settled on the back of better-than-expected US manufacturing data. By lunchtime on Friday, the S&P/ASX200 rose 17.6 points, or 0.21 per cent, to 8,366.2, as the broader All Ordinaries gained 19.9 points, or 0.23 per cent, to 8,591.3. The top 200 is about 2.1 per cent from its record-high close on February 14, while Wall Street's S&P500 index is almost five per cent short of its peak and down 1.8 per cent for the week. "The overnight moves in major markets were mixed, partly supported by a recovery in the US business sentiment as reported by the latest PMIs (purchasing manufacturing index figures)," Westpac senior economist Mantas Vanagas said. "After a notable sell off earlier this week, the US Treasuries rallied, with yields falling across the curve." Closer to home, NAB economists say Australia's economy is on track to stick its soft landing, despite emerging downside global economic risks, while downgrading their national GDP growth forecast for 2025. "We have lowered our expectation for GDP growth this year to 1.8 per cent year-on-year (from two per cent) but left our inflation and labour market tracks unchanged," economists Michelle Shi and Gareth Spence wrote. "The RBA will need to continue to lower rates in the near term to ensure that the labour market remains healthy." Six of 11 local sectors were trading higher by lunchtime, with financials, IT stocks and real estate helping lift the bourse. All big four banks were in the green after trending lower on Thursday, with NAB and ANZ in front with gains of more than 1.1 per cent. Energy stocks pushed 0.7 per cent higher with oil slipping since Thursday's close because of a stronger US dollar and expected output increases from OPEC+ countries. Brent crude futures were trading at $US63.69 a barrel, with their West Texas equivalent fetching $US61.34. Miners were heavy, with large cap players Fortescue and Rio Tinto down more than one per cent each and gold producers a mixed bag as appetite for the safe haven stalled as the greenback pushed higher on the back of easing US bond yields. Gold futures are trading at $US3,299 ($A5,130), about six per cent short of the precious metal's all-time high. Bitcoin, so-called digital gold, hit a fresh peak Friday morning of more than $US111,800 ($A173,860) as hype grows around the asset as a potential safe. IT stocks were leading the gains for the top-200, the sector lifting 0.9 per cent as Block, Zip Co, Megaport and NEXTDC etched gains of two per cent of more. The Australian dollar is buying 64.29 US cents, down from 64.38 US cents after easing bond yields pushed the greenback higher. The US dollar strength index briefly popped above 100 overnight but has since slipped to 99.67. The greenback's value against a basket of major currencies is down almost ten per cent since President Trump's inauguration in January.
Perth Now
23-05-2025
- Business
- Perth Now
Australian shares on track to make the week a winner
The Australian share market is set to finish the week higher, after Wall Street settled on the back of better-than-expected US manufacturing data. By lunchtime on Friday, the S&P/ASX200 rose 17.6 points, or 0.21 per cent, to 8,366.2, as the broader All Ordinaries gained 19.9 points, or 0.23 per cent, to 8,591.3. The top 200 is about 2.1 per cent from its record-high close on February 14, while Wall Street's S&P500 index is almost five per cent short of its peak and down 1.8 per cent for the week. "The overnight moves in major markets were mixed, partly supported by a recovery in the US business sentiment as reported by the latest PMIs (purchasing manufacturing index figures)," Westpac senior economist Mantas Vanagas said. "After a notable sell off earlier this week, the US Treasuries rallied, with yields falling across the curve." Closer to home, NAB economists say Australia's economy is on track to stick its soft landing, despite emerging downside global economic risks, while downgrading their national GDP growth forecast for 2025. "We have lowered our expectation for GDP growth this year to 1.8 per cent year-on-year (from two per cent) but left our inflation and labour market tracks unchanged," economists Michelle Shi and Gareth Spence wrote. "The RBA will need to continue to lower rates in the near term to ensure that the labour market remains healthy." Six of 11 local sectors were trading higher by lunchtime, with financials, IT stocks and real estate helping lift the bourse. All big four banks were in the green after trending lower on Thursday, with NAB and ANZ in front with gains of more than 1.1 per cent. Energy stocks pushed 0.7 per cent higher with oil slipping since Thursday's close because of a stronger US dollar and expected output increases from OPEC+ countries. Brent crude futures were trading at $US63.69 a barrel, with their West Texas equivalent fetching $US61.34. Miners were heavy, with large cap players Fortescue and Rio Tinto down more than one per cent each and gold producers a mixed bag as appetite for the safe haven stalled as the greenback pushed higher on the back of easing US bond yields. Gold futures are trading at $US3,299 ($A5,130), about six per cent short of the precious metal's all-time high. Bitcoin, so-called digital gold, hit a fresh peak Friday morning of more than $US111,800 ($A173,860) as hype grows around the asset as a potential safe. IT stocks were leading the gains for the top-200, the sector lifting 0.9 per cent as Block, Zip Co, Megaport and NEXTDC etched gains of two per cent of more. The Australian dollar is buying 64.29 US cents, down from 64.38 US cents after easing bond yields pushed the greenback higher. The US dollar strength index briefly popped above 100 overnight but has since slipped to 99.67. The greenback's value against a basket of major currencies is down almost ten per cent since President Trump's inauguration in January.
The Sun
16-05-2025
- Business
- The Sun
Trading Amid Turbulence: Octa Broker's Guide
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 16 May 2025 - Today, financial markets no longer dance solely to the rhythm of macroeconomic data releases. Instead, they often lurch or rally in response to an offhand remark from a political leader or an abrupt policy tweet. Nowhere is this more evident than in recent weeks, where headlines—not spreadsheets—have dominated market momentum. Traditional indicators like inflation figures or Purchasing Managers Indices (PMIs) still carry weight, but traders should also read between the headlines and act on the fly. Octa Broker provides examples of how news affects the market and what events are worth monitoring. The Historical Impact of News on Markets Market-shocking news is nothing new. Arguably, one of the most infamous examples occurred on 15 January 2015, when the Swiss National Bank unexpectedly eliminated its currency ceiling against the euro. Within seconds, the EUR/CHF pair plummeted by nearly 30%, wiping billions from the forex markets and sending shockwaves around global financial institutions. This historical context matters. It reminds that both scheduled and unscheduled news can have outsized impacts on market pricing, especially when market participants are caught off guard. Scheduled vs. Unscheduled News Events Scheduled news events, by their nature, offer predictability. Reports such as the Consumer Price Index (CPI), labour market data, PMIs, and central bank meetings are calendar fixtures. Their importance, however, varies depending on the issuing country. The United States is a leader in terms of influence. As the issuer of the global reserve currency, U.S. economic data has global ramifications. An example is the U.S. CPI reading, which not only shifts USD pairs but, often, equity indexes and commodities. The Bureau of Labor Statistics releases these reports monthly. PMI reports, often early indicators of economic health, are published by S&P Global on a harmonised schedule across major economies. Central bank meeting dates, while known in advance, still generate high volatility due to surprise rate decisions or hawkish/dovish commentary. Federal Reserve (Fed) meetings can be tracked here, and the European Central Bank's (ECB) schedule is also available on the institution's website. In contrast, unscheduled news events are unpredictable and often far more dramatic in terms of market impact. These include geopolitical tensions, unexpected policy announcements, or political rhetoric. On 1 February 2025, President Trump's sudden announcement of comprehensive tariffs on Canadian imports pushed USD/CAD to record multi-decade highs. The Surge of Unscheduled News in Recent Times April 2025 exemplified how chaotic unscheduled news can become. In early April, shifting U.S. tariff policies caused sharp moves in equity markets. Major indices dropped into correction territory but later recovered after revised statements. Then, in early May, mixed job data added to the uncertainty, offering little clarity on what to expect next. Current News Events Influencing the Markets Several unscheduled narratives are currently steering sentiment: •Trade negotiations between the U.S. and China are ongoing, with some progress achieved, but uncertainty continues to linger as to whether an acceptable and long-lasting agreement can be achieved within a 90-day deadline. •President Trump's public critique of Fed Chair Jerome Powell continues to inject uncertainty into the monetary policy outlook. •Meanwhile, the U.S. remains involved—albeit hesitantly—in peace talks between Ukraine and Russia. •Trade discussions with Japan have also become strained, with little progress reported thus far. Strategies for Traders During High-Volatility News Cycles In this news-saturated environment, adaptability is key. Traders can navigate volatility with the following strategies: •Use smaller position sizes to limit exposure. •Apply tighter stop-loss orders to protect against sudden swings. •Opt for short-term trades to reduce the risk of overnight event surprises. •Avoid overly volatile assets unless accompanied by clear signals or hedges. Kar Yong Ang, a financial market analyst at Octa Broker, notes: 'With news-driven and unexpected volatilities driving trading in our current setting, traders must become more reactive and less anticipatory in their strategies. Do not try to front-run and second-guess the outcome of this or that event. Instead, wait for the dust to settle and then enter the market. Position sizing should reflect the current volatility regime, ideally calculated through dynamic risk metrics like ATR (Average True Range). Most importantly, traders should maintain a structured news-monitoring routine and understand the second-order effects of headlines—for example, how a tariff announcement may ripple through commodities, currencies, and interest rate expectations simultaneously.' Scheduled economic releases still matter, but unscheduled news—particularly in the current politically charged global climate—has emerged as the primary driver of market sentiment. The line between economic and political news continues to blur, and with it, the predictability of price action. For traders, this means one thing above all: stay flexible, stay informed, and adjust strategies to match the new reality. ___ Disclaimer: This content is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to engage in any investment activity. It does not take into account your investment objectives, financial situation, or individual needs. Any action you take based on this content is at your sole discretion and risk. Octa and its affiliates accept no liability for any losses or consequences resulting from reliance on this material. Trading involves risks and may not be suitable for all investors. Use your expertise wisely and evaluate all associated risks before making an investment decision. Past performance is not a reliable indicator of future results. Availability of products and services may vary by jurisdiction. Please ensure compliance with your local laws before accessing them. The issuer is solely responsible for the content of this announcement.
The Sun
16-05-2025
- Business
- The Sun
Trading Amid Turbulence: Octa Broker's Guide to Navigating High-Volatility News Cycles
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 16 May 2025 - Today, financial markets no longer dance solely to the rhythm of macroeconomic data releases. Instead, they often lurch or rally in response to an offhand remark from a political leader or an abrupt policy tweet. Nowhere is this more evident than in recent weeks, where headlines—not spreadsheets—have dominated market momentum. Traditional indicators like inflation figures or Purchasing Managers Indices (PMIs) still carry weight, but traders should also read between the headlines and act on the fly. Octa Broker provides examples of how news affects the market and what events are worth monitoring. The Historical Impact of News on Markets Market-shocking news is nothing new. Arguably, one of the most infamous examples occurred on 15 January 2015, when the Swiss National Bank unexpectedly eliminated its currency ceiling against the euro. Within seconds, the EUR/CHF pair plummeted by nearly 30%, wiping billions from the forex markets and sending shockwaves around global financial institutions. This historical context matters. It reminds that both scheduled and unscheduled news can have outsized impacts on market pricing, especially when market participants are caught off guard. Scheduled vs. Unscheduled News Events Scheduled news events, by their nature, offer predictability. Reports such as the Consumer Price Index (CPI), labour market data, PMIs, and central bank meetings are calendar fixtures. Their importance, however, varies depending on the issuing country. The United States is a leader in terms of influence. As the issuer of the global reserve currency, U.S. economic data has global ramifications. An example is the U.S. CPI reading, which not only shifts USD pairs but, often, equity indexes and commodities. The Bureau of Labor Statistics releases these reports monthly. PMI reports, often early indicators of economic health, are published by S&P Global on a harmonised schedule across major economies. Central bank meeting dates, while known in advance, still generate high volatility due to surprise rate decisions or hawkish/dovish commentary. Federal Reserve (Fed) meetings can be tracked here, and the European Central Bank's (ECB) schedule is also available on the institution's website. In contrast, unscheduled news events are unpredictable and often far more dramatic in terms of market impact. These include geopolitical tensions, unexpected policy announcements, or political rhetoric. On 1 February 2025, President Trump's sudden announcement of comprehensive tariffs on Canadian imports pushed USD/CAD to record multi-decade highs. The Surge of Unscheduled News in Recent Times April 2025 exemplified how chaotic unscheduled news can become. In early April, shifting U.S. tariff policies caused sharp moves in equity markets. Major indices dropped into correction territory but later recovered after revised statements. Then, in early May, mixed job data added to the uncertainty, offering little clarity on what to expect next. Current News Events Influencing the Markets Several unscheduled narratives are currently steering sentiment: •Trade negotiations between the U.S. and China are ongoing, with some progress achieved, but uncertainty continues to linger as to whether an acceptable and long-lasting agreement can be achieved within a 90-day deadline. •President Trump's public critique of Fed Chair Jerome Powell continues to inject uncertainty into the monetary policy outlook. •Meanwhile, the U.S. remains involved—albeit hesitantly—in peace talks between Ukraine and Russia. •Trade discussions with Japan have also become strained, with little progress reported thus far. Strategies for Traders During High-Volatility News Cycles In this news-saturated environment, adaptability is key. Traders can navigate volatility with the following strategies: •Use smaller position sizes to limit exposure. •Apply tighter stop-loss orders to protect against sudden swings. •Opt for short-term trades to reduce the risk of overnight event surprises. •Avoid overly volatile assets unless accompanied by clear signals or hedges. Kar Yong Ang, a financial market analyst at Octa Broker, notes: 'With news-driven and unexpected volatilities driving trading in our current setting, traders must become more reactive and less anticipatory in their strategies. Do not try to front-run and second-guess the outcome of this or that event. Instead, wait for the dust to settle and then enter the market. Position sizing should reflect the current volatility regime, ideally calculated through dynamic risk metrics like ATR (Average True Range). Most importantly, traders should maintain a structured news-monitoring routine and understand the second-order effects of headlines—for example, how a tariff announcement may ripple through commodities, currencies, and interest rate expectations simultaneously.' Scheduled economic releases still matter, but unscheduled news—particularly in the current politically charged global climate—has emerged as the primary driver of market sentiment. The line between economic and political news continues to blur, and with it, the predictability of price action. For traders, this means one thing above all: stay flexible, stay informed, and adjust strategies to match the new reality. ___ Disclaimer: This content is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to engage in any investment activity. It does not take into account your investment objectives, financial situation, or individual needs. Any action you take based on this content is at your sole discretion and risk. Octa and its affiliates accept no liability for any losses or consequences resulting from reliance on this material. Trading involves risks and may not be suitable for all investors. Use your expertise wisely and evaluate all associated risks before making an investment decision. Past performance is not a reliable indicator of future results. Availability of products and services may vary by jurisdiction. Please ensure compliance with your local laws before accessing them. The issuer is solely responsible for the content of this announcement.
Reuters
06-05-2025
- Business
- Reuters
Kenya's private sector growth hits 27-month high in April, PMI shows
NAIROBI, May 6 (Reuters) - Kenya's private sector growth accelerated to a 27-month high in April, driven by robust sales volumes and solid business activity, according to the Stanbic Bank Kenya Purchasing Managers' Index (PMI) released on Tuesday. The PMI rose to 52.0 in April, up from 51.7 in March, marking its highest level since January 2023. A reading above 50.0 indicates growth in business activity, while below 50.0 signals contraction. Strengthening customer demand led to the fastest rise in new orders since February 2022, prompting businesses to expand output and increase purchasing activities. "The Kenya PMIs for April reveal a private sector expanding robustly, and at the fastest pace in over two years," said Christopher Legilisho, Economist at Stanbic Bank. Job creation quickened as firms sought to ease workload pressures, with employment growth reaching its strongest level in nearly a year. However, hiring was primarily focused on temporary staff. Cost pressures picked up amid rising demand, but inflation remained modest compared to historical trends. Input costs rose to a three-month high, driven by supply shortfalls and increased taxation, yet the rate of inflation was below the long-term average. Despite the positive momentum, business expectations remained among the weakest in the survey's history, with only 5% of firms anticipating output growth over the next 12 months. Legilisho noted, "Overall, the April PMI implies a steady return to growth at the start of Q2:25. Further, inflationary pressures remained muted. Despite an improvement in future expectations, sentiment remains among the weakest in the survey history." The PMI survey highlighted robust gains in services, agriculture, and construction sectors, contrasting with lower sales in manufacturing and wholesale & retail.
