Asia

According to the latest report, the US crude futures advanced for a third consecutive day on Wednesday, reaching new 2016 highs. The US benchmark posting a nearly 11-month closing record. On the New York Mercantile Exchange, West Texas Intermediate crude for July delivery added +0.62% and rose 87 cents, or 1.7%, to settle at $51.23-showing the highest close for a nearby contract since July 15. Meanwhile, August Brent crude, increased 0.42% the global oil benchmark, reaching $1.07, or 2.1%, to finish at $52.51 a barrel on London’s ICE Futures exchange, its highest close since October. According to the analysts, futures were affected in a positive way boosted by reports of another attack on oil facilities in Nigeria. They were also buoyed by data from an industry trade group, the American Petroleum Institute, which on Tuesday said that US crude inventories had fallen by 3.6 million barrels. Also, crude found support from continued supply disruptions, as well as China import data and a decline in crude inventories.

The World Bank has cut its global economic growth forecasts and subscribed to cut forecasts operated by other supranational institutions, due to the uncertainty of the macroeconomic scenario.

The new estimate indicates an increase of 2.4% compared to 2.9% previously indicated. Growth readjusts well to the levels of 2015, and will tend to rise to 2.8% in 2017 and 3% in 2018.

The United States throw accusations at China on the issue of unfair competition and dumping in the steel sector, plagued by excess capacity globally but especially right in the Asian giant. "In line with the reforms of China, the United States supports efforts to reduce excess capacity and leave it to market forces to determine investment", the State Treasury Secretary Jack Lew said, pointing the finger at " the "Chinese excesses" that distort global markets. "

Negative signals still come from China, with the service sector, in May shows a slower pace. While the manufacturing industry continues to falter, the indicator on services adds uncertainty about the direction of the second largest economy in the world.

In May, the Purchasing Managers Index (PMI) service managers developed by Caixin and Markit fell to 51.1 from 51.8 in April, indicating a slowdown in the nation’s service sector. It has disappointed the expectations were for a level 52.
The figure differs slightly from the official services PMI, which, in May, fell to 53.1 from 53.5 in April.

Pair’s Outlook
USD/JPY decided not to pull back after breaking out of the channel and prolonged the decline down to the weekly S2 level. If there is a rally today, as suggested by the daily technical indicators, it is likely to stay limited by the monthly PP and weekly S1 at 109.50/20. The current target is a critical support area between 107 and 106.65 yen, which is formed by the monthly S1, but even more importantly-by the 38.2% retracement of the four-year up-move started back in 2012. Accordingly, the risks are to the upside.

The Saudi Arabia sovereign fund invested $ 3.5 billion in Uber, bringing in $ 11 billion for the investment reserves of the American app, now owning 5% of Uber. This is the largest investment ever made in a private company by the fund: its general director Yasir Al Rumayyan will enter the board of directors.

While in the Middle East Uber is spreading more peaceful and comprehensive way, one of the cities where it is growing most is Cairo. As the Financial Times notes, in Saudi Arabia, Uber is popular as a result of the transport needs, due to the fact that women are forbidden to drive.

Australia has put on sale about $ 13 million in Bitcoin, confiscated by the Australian authorities. It is 25,000 pieces (24,518) seized from a drug dealer, who was arrested in 2014. The virtual currency amount will be divided into 11 lots from 2,000 coins and a lot of 2,518.

The transaction, announced from the house of Ernst & Young auction will be held June 20 and occurs while the value of Bitcoin has recorded strong appreciation in recent months.

The auction of June following the one conducted by the US Marshals Service, last year, which put on sale the Bitcoin confiscated Ross Ulbricht, who was arrested in 2013 for money laundering. The man would use the Bitcoin to create an empire from drug sales.

BSI can now continue to work in Singapore, despite the announcement yesterday by the local authorities of serious violations of anti-money laundering rules. The decision of the Monetary Authority of Singapore (MAS) to prevent the Ticino bank to operate in the country will come into force at a later date.

"In this way we want to allow to transfer the assets of BSI to EFG International", BSI indicates in a statement today.

Furthermore the Ticino institution explained that the bank is not affected by insolvencies and is in a good liquidity situation. The bank also will not suffer negative consequences from the penalties imposed by Mas and FINMA. Both fines will be paid out of the general reserve for banking risks.