In Asian Equity Markets indices were around all-time highs on Monday after Friday global market gains. Thailand shares rose as much as 0.7 percent to hit a record high, and were on track for a fifth session of gains. Financials and industrial stocks gained. Singapore climbed to its highest in nearly 32 months, driven by financial and industrial stocks. Shanghai Composite index was up 0.3 percent at 3,403.46, boosted by robust gains for real estate firms as major developers reported impressive 2017 sales. South Korea’s Kospi rose 0.4 percent after earlier slipping below the flat line. Retailers, automakers and trading houses rose in the session, with Lotte Shopping adding 2 percent. Blue chips Samsung Electronics and SK Hynix, however, lost 0.3 percent and 2.1 percent. Vietnam index, however, fell 0.2 percent, dragged down by consumer staples and energy stocks.
In Currency Markets the US dollar held steady above a recent 3 month low against a basket of major peers on Monday, after data showing slower U.S. jobs growth did little to dent expectations for further Federal Reserve interest rate increases this year. The dollar’s index against a basket of six major currencies was flat at 91.919, just above lows of 91.751 set on Jan. 2. Comments by some Fed officials on Friday and over the weekend suggested the U.S. central bank remained on track to raise interest rates further in 2018. The Canadian dollar traded at C$1.2385 per U.S. dollar, up 0.2 percent from late U.S. trade on Friday. The Canadian dollar had jumped to a 3-month high of C$1.2355 on Friday, as market expectations for Canada’s central bank to raise interest rates in January increased as Canadian jobs data beat market expectations.
In Commodities Markets oil futures were little changed on Monday opening following a 1.7 percent increase last week. Working rigs drilling for crude fell by five in the seven days ended Jan. 5, bringing the total to 742, according to Baker Hughes data reported Friday, when prices slid 0.9 percent. Meanwhile, hedge funds retreated from the most bullish stance on West Texas Intermediate oil in 10 months during the week ended Jan. 2. Gold prices held steady, below the 3-month highs hit last week, amid expectations of more U.S. interest rate hikes this year. Meanwhile, hedge funds and money managers raised their net long positions in COMEX gold in the week to Jan. 2, U.S. CFTC data showed on Friday. Among other precious metals, palladium was stable at $1,090.49 an ounce. Last week palladium hit a record high at $1,105.70.
In US Equity Markets the S&P 500 and Nasdaq posted their best weekly gains in more than a year on Friday as technology stocks helped lift major indexes to records. With the New Year’s Day holiday falling on a Monday this year, it was the strongest first four trading days to a year in more than a decade for all three major indices. The S&P 500 gained 0.7 percent, to 2,743.15 and the Nasdaq Composite added 0.8 percent, to 7,136.56 on Friday. The S&P technology index’s 1.2-percent gain led the advances among the 11 major S&P sectors, with gains in Microsoft, Apple and Google-parent Alphabet boosting the index. Energy and utilities were flat, under-performing the general market. Francesca’s Holdings fell over 20 percent. The women’s apparel and accessories maker said it expected up to 17 percent decline in current-quarter same-store sales.
In Bond Markets U.S. Treasury yields rose on Friday with the two-year yield hovering near a more than nine-year peak as investors stuck to the view of a possible rate increase in March, ignoring a disappointing figure on domestic hiring for December. The benchmark 10-year Treasury yield was up 2 basis point at 2.47 percent. The two-year yield, which is more sensitive on Fed policy, edged up 0.4 basis point to 1.96 percent. Philippines is looking to issue sovereign bonds in the first quarter of the year to help finance this year’s budget, its finance minister said on Monday, signaling the government is stepping up efforts to upgrade the nation’s infrastructure. Finance Secretary told a news conference the bond offering could happen between January and February, but he didn’t provide any information on the amount the government planned to raise.
Today’s inflection points:
- 09:15 GMT+1 CHF CPI
- 10:30 GMT+1 EUR Sentix Investor Confidence
- 11:00 GMT+1 EUR Retail sales
- 11:00 GMT+1 EUR Business climate indicator (BCI)
- 11:00 GMT+1 EUR Economic confidence (ESI)
- 19:35 GMT+1 USD Fed’s Williams (voter) speaks
- 22:00 GMT+1 USD Fed’s Rosengren (non-voter) speaks