Us Fed News

World Energy Reports has released its midterm five year forecast of production floater orders. The forecast, detailed in the March 2017 WER report, reflects positive and negative developments in underlying business drivers since WER’s five year forecast last October. Likelihood that the November U.S. election results will accelerate U.S. More rapid expected increase in cost of capital – U.S. Overall, the net impact of these changes is slightly negative – but the outlook for a ramp up in production floater orders remains bullish.

The U.S. dollar rose to a three week high against the yen on Friday, on a report of likely further monetary policy easing from the Bank of Japan, while a rise in crude oil prices was offset by poor technology sector earnings, leaving Wall Street stocks steady. The dollar rose more than 2.0 percent against the yen to 111.80 yen, its highest level since April 1 after a media report said the BOJ is considering expanding its negative rate policy to bank loans and could cut rates further. A rise in oil prices helped energy stocks, but disappointing earnings from top technology companies, including Google's parent, Alphabet, weighed on the tech sector on Wall Street, leaving the U.S.'s benchmark S&P 500 stock index little changed for the day.

Looking at the global economy, although markets seemingly having a hard time digesting recent moves by the US Fed to scale back its bond purchasing program, a recovery appears to be on the horizon. One notable difference when compared to recent years has been that OECD economies, in particular the US, comprises a larger contribution to this development. This has been spurred by reduced energy costs on the back of the US oil boom which has been helping to reign in the unemployment level.