In Asina Equity Markets indices were mostly higher on Monday. Japanese markets were closed in observance of a public holiday. South Korea’s Kospi advanced 1.1 percent, with heavily weighted technology stocks higher in the morning. Samsung Electronics rebounded 2.6 percent and SK Hynix gained 0.4 percent. Financials also traded higher in the early going. Shipbuilders were mostly in negative territory, with Samsung Heavy down 3.1 percent. Hyundai Heavy Industries declined 1.5 percent after it reported a miss on fourth-quarter earnings on Friday after the market close. The S&P/ASX 200 slipped 0.2 percent as earnings season continued Down Under. Energy-related stocks were down 0.4 percent despite oil prices rebounding after sliding for six straight sessions. Santos declined 0.5 percent and Beach Energy lost 2.8 percent.
In Currency Markets the yen edged higher versus the dollar on Monday, but traded below a five-month high as a bounce in U.S. equities late last week dampened demand for traditional safe haven currencies. The dollar eased 0.1 percent to 108.70 yen, but remained above Friday’s trough of 108.05 yen, its lowest level since Sept. 11. The dollar last week fell nearly 1.3 percent against the yen. Against a basket of six major currencies, the dollar eased 0.4 percent to 90.105 after gaining 1.4 percent last week. Last week was the greenback’s strongest against the currency basket in nearly 15 months as some traders closed out dollar-bearish bets, while others favored the dollar in a safe-haven move to exit other higher-returning but riskier currencies. The euro edged up 0.3 percent to $1.2290.
In Commodities Markets oil prices rose by 1 percent on Monday, recovering at least some of last week’s steep losses as Asian stock markets found their footing after days of chaotic trading. Looming over oil markets, however, was rising production in the United States which is undermining efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to tighten markets and prop up prices. Brent crude futures were at $63.42 per barrel, up 63 cents, or 1 percent, from the previous close. U.S. West Texas Intermediate (WTI) crude futures were at $59.83 a barrel. That was up 63 cents, or 1.1 percent, from their last settlement. U.S. energy companies added 26 oil rigs looking for new production this week, boosting the count to 791, the highest since April 2015.
In US Equity Markets stocks ended a wild week with a burst of buying, pushing the S&P 500 up 1.5 percent on Friday, but still recorded their worst week in two years, and investors braced for more volatile trading days ahead. The S&P 500 ended the week nearly 9 percent below the all-time high set just two weeks ago. the S&P 500 gained 1.49 percent, to 2,619.55, and the Nasdaq Composite added 1.44 percent, to 6,874.49. The benchmark S&P 500 fell 5.2 percent for the week, its biggest weekly percentage decline since January 2016. For the week, the under-perform sector was energy down 8.5 percent. Shares of Lions Gate Entertainment Corp fell 15 percent on Friday after the company lowered outlook and also brokers cut ratings. Nvidia shares were up 6 percent and was the top gainer on S&P, posing it’s biggest one-day gain since May after reporting strong results.
In Bond Markets U.S. Treasury prices gained on Friday after renewed weakness in equity markets increased demand for the low-risk debt. Bond yields have jumped in the past two weeks as rising inflation and other economic data has led investors to adjust for the prospect of faster economic growth and the possibility the Federal Reserve will raise interest rates faster than previously expected. Benchmark 10-year notes were last up 9/32 in price to yield 2.819 percent, down from 2.849 percent on Thursday. For most of the week they have traded near the high end of this week’s range, which is between a four-year high of 2.885 percent and a low of 2.648 percent both reached on Monday.
Today’s inflection points
- 09:15 GMT+1 CHF CPI
- 20:00 GMT+1 USD Budget statement