In Asian Equity Markets stocks mostly rose on Friday, snapping two days of losses after expectations grew that U.S. jobs data due later in the day would reinforce the need for faster U.S. interest rate hikes. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.7 percent, boosted by gains in Australia where the local benchmark climbed 1.3 percent. Japan’s Nikkei fell 0.1 percent. China and Hong Kong stocks edged higher on hopes that Beijing will roll out more support measures to prioritize economic stability. Hong Kong stocks added 1.2 percent, and Chinese blue chips edged up 0.2 percent.
In Currency Markets the dollar is set to notch broad weekly gains and could extend its rally if U.S. labour data due on Friday reinforces the case for early Federal Reserve interest rate hikes. The greenback hit a five-year peak on the yen at 116.35 on Tuesday and hovered around 115.87 in Asia on Friday. The greenback is also up about 0.6 percent for the week to $1.1301 per euro. The Aussie fell through support around $0.7184 on Thursday and last bought $0.7159. The kiwi was near a two-week low at $0.6751 on Friday and down 1.4 percent for the first trading week of 2022.
In US Equity Markets the S&P 500 ended a volatile session close to unchanged on Thursday, as technology shares fell but financials lent support a day after the market sold off on a hawkish slant in Federal Reserve minutes. The Dow fell 0.47 percent, to 36,236.47, the S&P 500 lost 0.10 percent, to 4,696.05 and the Nasdaq Composite fell 0.13 percent, to 15,080.87. The S&P 500 financials index rose 1.6 percent, extending this week’s strong gains. Other economically sensitive sectors also advanced. Energy gained 2.3 percent and is up more than 9 percent since Dec. 31.
In Commodities Markets oil prices rose about 2 percent on Thursday, extending their new year’s rally, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya. Brent crude futures rose 1.5 percent, to settle at $81.99 a barrel, after hitting their highest since late November. U.S. West Texas Intermediate (WTI) crude gained 2.1 percent, to $79.46. Spot gold was last down 1.2 percent at $1,788.25 an ounce. Spot silver fell 2.9 percent to $22.12, its lowest level since Dec. 16. Platinum fell 2.3 percent to $959.91 and palladium lost 0.5 percent to $1,874.26.
In European Equity Markets stocks fell from record highs on Thursday as hawkish signals from the minutes of the U.S. Federal Reserve’s December meeting battered technology shares with the prospect of rising interest rates. The pan-European STOXX 600 index closed 1.3 percent lower, erasing all gains made in a rally that pushed it to record highs in the first three sessions of the year. European technology stocks were among the biggest decliners in the region, falling 2.4 percent as the prospect of higher rates made future earnings appear less attractive.
In Bond Markets U.S. Treasury yields on most maturities rose on Thursday, as investors prepared for an earlier-than-expected interest rate hike and the possibility that the Federal Reserve may cut its bond holdings sooner than many initially thought. Benchmark 10-year yields rose to 1.7530 percent, the highest since March 2021, and were last up nearly 3 basis points on the day at 1.7299 percent. At the long end of the curve, 30-year yields rose to an 11-week peak of 2.138 percent, and were last little changed at 2.0896 percent.