Tag Archives: Japanese Yen Spot

U.S. Stocks Advance With Dollar, Treasury Yields: Markets Wrap

U.S. stocks extended records with an eighth straight gain, the dollar rose to a two-month high and Treasuries dipped as a batch of U.S. data and hawkish Fed speakers strengthened the case for higher rates.

The S&P 500 Index capped its longest winning streak since July 2013, with tech shares pacing gains as the prospect for faster economic growth got a lift from better-than-forecast factory orders. The CBOE Volatility Index closed at a record low in data going back to 1990. U.S. 10-year note yields edged higher, and the dollar pushed its gain in the past month to 2 percent as comments by regional Fed President John Williams reinforced optimism in the economy. The U.S. government releases September jobs data Friday.

In Asian markets, holidays this week across the region and a lack of major economic data may curb trading. The Japanese yen was little changed after Bank of Japan Deputy Governor Hiroshi Nakaso commented on inflation during a speech in London.

“The data we’ve had has been pretty good and again hawkish — better than the inflation data we got with the PCE data last week,” Michael O’Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “There’s more re-pricing necessary in bonds, especially considering we’re seeing pretty good economic data that’s definitely going to keep the Fed on course.”

European markets firmed Thursday after reports that Catalans were stalling their push for independence from Spain. That sent the nation’s bond yields and equities higher. Minutes from the European Central Bank released showed members discussed how to adjust monetary stimulus next year as policy makers raised concern about the rapid appreciation of the euro.

Terminal subscribers can read more in our Markets Live blog.

Coming Up:

Here are the main moves in markets:

Stocks

  • The S&P 500 Index advanced 0.6 percent to a record 2,552.07 at 4 p.m. New York Time.
  • The Dow Jones Industrial Average added 114 points to 22,755, rising for the seventh day in a row to a record.
  • The Nasdaq 100 Stock Index rose 1 percent to 6,057.
  • The Stoxx Europe 600 Index gained 0.2 percent after falling as much as 0.3 percent.
  • Spain’s IBEX Index rose 2.5 percent, the most since in almost six months.

Currencies

  • The Bloomberg Dollar Spot Index increased 0.6 percent, touching the highest in 11 weeks.
  • The Japanese yen fell less than 0.1 percent.
  • The Australian dollar dropped 0.9 percent to $0.7793.
  • The euro declined 0.5 percent to $1.1705.
  • The British pound fell 1 percent to $1.3114, the weakest in four weeks.

Bonds

  • The yield on 10-year Treasuries rose two basis points to 2.34 percent.
  • Germany’s 10-year yield rose less than one basis point to 0.46 percent.
  • Spain’s 10-year yield fell 9 basis points to 1.699 percent.

Commodities

  • West Texas Intermediate crude gained 1.4 percent to settle at $50.86 a barrel.
  • Gold fell 0.6 percent to $1,267.80 an ounce.
  • Copper surged 2.9 percent to $304 per pound, the biggest gain in more than five weeks.

    Read more: http://www.bloomberg.com/news/articles/2017-10-04/dollar-bonds-are-listless-as-oil-drops-below-50-markets-wrap

    Stocks in Asia Head Lower as Haven Rally Subsides: Markets Wrap

    Financial markets showed signs of stabilizing after a fresh trigger from North Korea had sent money into haven assets, with focus returning to comments from central bank policy makers.

    Stocks in Asia fell, though declines were modest, as gains in gold and the yen petered out. North Korea had injected a note of caution to markets on Monday after its foreign minister declared that the nation can shoot down U.S. warplanes. Focus remains on Chinese property developers, as one of the world’s most extreme stock rallies gets a reality check.

    North Korean Foreign Minister Ri Yong Ho described President Donald Trump’s recent comments as tantamount to a declaration of war. The White House denied it has declared war on Pyongyang, while China’s ambassador to the UN told Reuters the situation is "getting too dangerous."

    “This does represent a significant escalation in rhetoric and raises the risk of a tactical misstep,” said Tapas Strickland, a Sydney-based economist at National Australia Bank Ltd.

    A speech by Federal Reserve Chair Janet Yellen on Tuesday will be parsed as policy makers continue to disagree on whether to raise U.S. interest rates again this year. New York Fed President William Dudley argued the U.S. central bank should stick with its strategy of gradual monetary policy tightening, a view echoed by Yellen. Meanwhile, Chicago Fed President Charles Evans urged caution as did Minneapolis Fed President Neel Kashkari. Investors see a roughly 60 percent chance that rates will be increased again in December following moves in March and June.

    Terminal subscribers can read more in our Markets Live blog.

    What to watch out for this week:

    • Later in the week, Bank of England Governor Mark Carney speaks, as does soon-to-depart Fed Vice Chairman Stanley Fischer.
    • European Union chief Brexit negotiator Michel Barnier and U.K. counterpart David Davis begin their next round of negotiations.
    • Household spending last month in the U.S. probably posted the smallest gain since February as motor-vehicle sales shifted into a lower gear, economists forecast government figures to show.
    • The euro-area inflation rate may have accelerated a touch to 1.6 percent in September from 1.5 percent but the core will probably remain at 1.2 percent when data is out on Friday.

    Here are the main moves in markets:

    Stocks

    • Japan’s Topix index was slightly lower as of 11:05 a.m. in Tokyo. South Korea’s Kospi index fell and Australia’s S&P/ASX 200 Index were little changed.
    • Hong Kong’s Hang Seng Index was down 0.1 percent after slumping 1.4 percent on Monday as Chinese property developers tumbled on fresh mainland home curbs.
    • Futures on the S&P 500 Index fell 0.1 percent. The underlying gauge lost 0.2 percent, while the Nasdaq Composite Index declined 0.9 percent following a selloff in technology stocks.

    Currencies

    • The Bloomberg Dollar Spot Index was down less than 0.1 percent after climbing 0.4 percent to the highest in more than three weeks.
    • The yen was little changed at 111.65. It gained 0.2 percent on Monday.
    • The won fell 0.4 percent to 1,136.58 per dollar.
    • The euro was at $1.1860 after falling 0.9 percent.
    • The Australian dollar bought 79.44 U.S. cents. The New Zealand dollar dropped 0.3 percent, adding to a 0.9 percent slide on Monday.

    Bonds

    • The yield on 10-year Treasuries was at 2.22 percent, maintaining a three basis point drop on Monday.
    • Australia’s 10-year bonds yield fell three basis points to 2.77 percent.

    Commodities

    • Gold was steady at $1,311.26 an ounce, after jumping 1 percent on Monday.
    • West Texas Intermediate crude edged lower to $52.16 a barrel after rising 3.1 percent on Monday to the highest since April. Turkey threatened to shut down Kurdish crude shipments through its territory.

      Read more: http://www.bloomberg.com/news/articles/2017-09-25/havens-climb-on-north-korea-as-stocks-point-lower-markets-wrap