Morning Report

Equity

Asian stocks slipped on Friday as investors fretted about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3 percent, easing back from a four-month peak touched the previous day. Japan’s Nikkei fell 1.2 percent

Bonds

The 10-year U.S. Treasury yield stood near a six-day low of 2.65 percent plumbed overnight, when it sank more than 4 basis points amid the broader risk aversion in markets.

The 10-year German bund yield fell to 0.105 percent on Thursday, its lowest since November 2016 after the European Commission’s sharp cuts to growth and inflation forecasts.

Currency

The euro sagged under the weight of declining German bund yields. The single currency was down 0.2 percent at $1.1339 after dropping to a two-week low of $1.1325 the previous day.
The dollar was little changed at 109.820 yen, nudged off a high of 110.09 reached the previous day.

Oil

In commodities, U.S. crude futures slipped 0.3 percent to $52.48 per barrel, extending losses after dropping 2.5 percent in the previous session.

Oil fell on Thursday as the market was hurt by concerns that global demand growth would lag in the coming year.

Morning Report

Equity

Asia stocks were barely moved on Monday, staying near a four-month high after Wall Street’s tepid pre-weekend performance, while the dollar was supported against the yen following strong U.S. jobs and manufacturing data

MSCI’s broadest index of Asia-Pacific shares outside Japan was basically unchanged, capped below the four-month peak scaled on Friday.

Japan’s Nikkei added 0.4 percent.The Dow nudged up 0.26 percent while the Nasdaq shed 0.25 percent on Friday.

U.S. Labor Department report on Friday showed nonfarm payrolls jumped by a stronger-than-forecast 304,000 jobs last month, the largest gain since February 2018.

That report, along with better-than-expected ISM manufacturing activity numbers for January, pointed to underlying strength in the world’s biggest economy.

Currency

On Monday, the U.S. currency was a shade higher at 109.55 yen after advancing 0.6 percent on Friday.

The euro was little changed at $1.1455 after getting pulled back from a high of $1.1488 on Friday.

The Australian dollar was steady at $0.7250 after slipping 0.4 percent the previous session.

Bonds and Oil

The benchmark 10-year U.S. Treasury yield was at 2.691 percent after climbing nearly 6 basis points on Friday to pull away from a four-week low of 2.619 percent earlier last week.

U.S. crude oil futures inched down 0.04 percent to $55.24 per barrel after surging 2.7 percent on Friday.

Oil prices had rallied on the upbeat U.S. jobs report, signs that Washington’s sanctions on Venezuelan exports have helped tighten supply and data showing U.S. drillers cut the number of oil rigs.

Morning Report

EQUITY

Asia stocks rose to a four-month high on Thursday, tracking Wall Street, after the Federal Reserve pledged to be patient with further interest rate hikes, signaling a potential end to its tightening cycle amid signs of slowing global growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose to its highest since Oct. 4 and was last up 0.4 percent. Japan’s Nikkei rose 1.4 percent. Australian stocks added 0.4 percent, while South Korea’s KOSPI advanced 0.7 percent.

On Wall Street, the Dow and the Nasdaq rallied 1.7 percent and 2.2 percent, respectively, on hopes the Fed’s pause would give the U.S. economy and corporate profits more room to run.

FOMC

The Fed on Wednesday held interest rates steady as expected, and also discarded its promises of “further gradual increases” in interest rates.

The Fed’s statements firmly confirmed its dovish stance, which had already been on display at the start of the year. Market concerns toward the Fed’s rate hikes have now been put to rest,

CURRENCY

In currencies, the dollar index against a basket of six major currencies struggled near a three-week low of 95.253 brushed on Wednesday, when it had sunk 0.5 percent.

A weaker dollar helped nudge the euro to $1.1501 on Wednesday, its highest since Jan. 11, and the common currency was last up 0.1 percent at $1.1488.

The greenback was down 0.1 percent at 108.96 yen and close to a two-week low of 108.81 reached overnight.The pound was a shade higher at $1.3123,

BONDS / OIL

The benchmark 10-year U.S. Treasury yield stood at 2.681 percent after sliding to 2.676 percent overnight, its lowest since Jan. 14.

Oil prices rose after U.S. government data showed signs of tightening supply and as investors remained concerned about supply disruptions following U.S. sanctions on Venezuela’s oil industry.

U.S. crude oil futures were up 0.46 percent at 54.48 per barrel.

Source : Reuters

Morning Report

EQUITY

Asian stocks advanced on Monday as Wall Street rallied after a deal was announced to reopen the U.S. government following a prolonged shutdown that had shaken investor sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.2 percent.South Korea’s KOSPI edged up 0.2 percent, New Zealand stocks were up a touch, while Japan’s Nikkei bucked the trends and eased 0.2 percent. Australian financial markets were shut for their ‘Australia Day’ holiday.

Facing mounting pressure, U.S. President Donald Trump agreed on Friday to temporarily end a 35-day-old partial U.S. government shutdown without getting the $5.7 billion he had demanded from Congress for a border wall.

CURRENCY

In the currency market, the pound stood tall, hovering near a three-month high of $1.3218 set on Friday on the back of optimism that Britain can avoid a no-deal Brexit.

The euro was 0.05 percent higher at $1.1412 after gaining 0.9 percent on Friday, paring the losses from earlier last week on dovish-sounding comments by European Central Bank President Mario Draghi.

The dollar was slightly lower at 109.48 yen following mild losses at the end of last week.

BONDS

The benchmark 10-year Treasury yield was little changed at 2.754 percent after popping up 4 basis points on Friday in the wake of surging U.S. shares.

OIL

U.S. crude oil futures were down 0.55 percent at $53.39 per barrel, losing some momentum after two sessions of gains.

Oil prices rose towards the end of last week as political turmoil in Venezuela threatened to tighten crude supply, with the United States signaling it may impose sanctions on exports from the South American nation.

Source : Reuters

Morning Report

Asian shares edge up, ECB meeting in focus

Asian shares rose on Thursday after Wall Street managed to end higher, but gains were capped by political uncertainty in the United States and worries about weakening global economic growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent. It has gained 3.8 percent so far this month.

Australian shares were 0.1 percent higher while Japan’s Nikkei lost more than 0.3 percent in early trade.

On Wall Street, all three major U.S. equity indexes closed in positive territory, with the Dow Jones Industrial Average booking the largest gains on upbeat quarterly results from International Business Machines. The S&P 500 .gained 0.22 percent.

CENTRAL BANK MEETINGS

Investors’ focus also turned to the European Central Bank. The ECB is widely expected to stay on hold at its first monetary policy meeting of 2019 that ends later on Thursday, but may acknowledge a sharp slowdown in growth, raising the prospect that any further policy normalization could be delayed.

The ECB’s meeting will come a day after the Bank of Japan cut its inflation forecasts on Wednesday but maintained its massive stimulus program, with Governor Haruhiko Kuroda warning of growing risks to the economy from trade protectionism and faltering global demand.

CURRENCY

In currency markets, the dollar last was a shade weaker against the yen , changing hands at 109.55 yen per dollar.

The dollar hit a year-to-date high of 110.00 yen against the Japanese currency after the BOJ kept its policy on hold the previous day. The euro was basically flat at $1.1384. It has lost more than 1.5 percent after climbing to a three-month high of $1.1570 on Jan. 10.

Sterling hit a fresh 11-week high against the dollar, rising to $1.3084, on bets that a no-deal Brexit can be avoided if parliament exerts greater control over the process.

Solid Australian jobs data for December helped support the Australian dollar, which rose 0.2 percent to $0.7158. The Aussie is up 1.4 percent against the greenback so far this year.

BONDS

The yield on benchmark 10-year Treasury notes fell to 2.744 percent compared with its U.S. close of 2.755 percent on Wednesday.

OIL

In commodity markets, oil prices extended their slide from Wednesday when they slipped as the EU sought to circumvent U.S. trade sanctions against Iran, and on weaker U.S. gasoline prices.

U..S. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.38 percent, to $52.42,

Source : Reuters

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