09 July 2021
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar drops from three-month highs as Treasury yields tumble
- Japan stocks fall 2% as Asia-Pacific shares slide; China’s consumer inflation data misses expectations
- Oil mixed as U.S. inventories draw offset by OPEC+ standoff
The safe-haven yen and Swiss franc stood tall on Friday, while risk-sensitive currencies including the Australian and New Zealand dollars languished near multi-month lows as investors turned cautious about the global economic recovery.
The benchmark U.S. Treasury yield dipped to a nearly five-month low of 1.25% overnight, from as high as 1.5440% just two weeks ago. That put pressure on the U.S. currency, with the dollar index left licking its wounds after a 0.36% slide on Thursday to stand at 92.372. On Wednesday, it had pushed to a three-month high of 92.8440.
The euro benefited, holding on to a 0.45% jump from overnight to trade at $1.1846. The yen changed hands at 109.865 per dollar, maintaining gains from the previous session’s 0.8% rally.
Shares in Asia-Pacific fell in Friday morning trade as investors reacted to the release of Chinese inflation data. China’s consumer price index for June rose 1.1% as compared with a year ago, data from the country’s National Bureau of Statistics showed on Friday. That was lower than expectations for a 1.3% year-on-year increase by analysts in a Reuters poll.
In Japan, the Nikkei 225 led losses among the region’s major markets as it fell 2.01% in morning trade while the Topix index shed 1.85%. Mainland Chinese stocks also slipped in early trade, with the Shanghai composite shedding 0.49% and the Shenzhen component declining 0.991%. Hong Kong’s Hang Seng index sat below the flatline.
South Korea’s Kospi dropped 1.66%.Australian stocks also declined as the S&P/ASX 200 shed 1.41%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.87% lower. Overnight on Wall Street, the Dow Jones Industrial Average fell 259.86 points to 34,421.93 while the S&P 500 declined 0.86% to 4,320.82. The Nasdaq Composite slipped 0.72% to 14,559.78.
Oil prices were mixed on Friday after a boost from a drop in U.S. crude and gasoline inventories, but were still set for a weekly decline on concerns that an OPEC+ impasse could swell global crude supplies.
Brent crude oil futures were down 9 cents, or 0.1%, at $74.03 a barrel . U.S. West Texas Intermediate futures were up 1 cent at $72.95 a barrel.
Both benchmarks were headed for a loss of nearly 3% for the week, as traders remained worried that the collapse of talks between the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, could lead to a rise in crude supplies.
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