ECONOMY
On Friday , Asian share markets dithered as investors waited for concrete signs of progress in the U.S.-Mexican trade standoff, while bracing for a U.S. jobs report that could sway the course of interest rates there.
Mexican and U.S. officials had held a second day of talks on trade and migration on Thursday amid reports President Donald Trump might delay the imposition of tariffs that was due on Monday.
President Draghi disappointing market’s dovish policy pricing with a series ‘optimistic’ remarks. Money market futures are now pricing in a 45% chance of a 10 basis point euro zone rate cut by the end of year versus 75% before the ECB statement.
The U.S. Treasury Department on Thursday tightened its pressure on Venezuela’s state-owned oil company by making clear that exports of diluents by international shippers could be subject to U.S. sanctions.
Japan’s household spending rose for a fifth straight month in April but real wages declined, adding to worries about consumption as global trade frictions weigh on broader economic activity. Household spending grew 1.3% from a year earlier, government data showed on Friday, compared with a median market forecast for a 2.6% increase.
BONDS
Two-year Treasury yields were near their lowest since December 2017 at 1.88%, having fallen 28 basis points in just two weeks.
CURRENCY
The single currency bounced sharply overnight after the European Central Bank pushed back the timing of any rate hike, but failed to canvass the policy easing that many had wagered on.
That seismic shift in Fed expectations has hampered the U.S. dollar, which was currently down 0.7% for the week so far against a basket of currencies at 97.020.
The dollar has at least steadied on the yen at 108.44 and was off the recent five-month low of 107.80.
It fared less well on the euro which was currently holding gains of almost 1% for the week at $1.1273.
COMMODITY
The chatter of rate cuts globally kept gold near 15-week highs at $1,333.45 per ounce.
Oil prices regained a little ground after a rough week but was still vulnerable to worries about global demand and oversupply. Brent crude futures bounced 59 cents to $62.26, but were still down 3.5% for the week so far, while U.S. crude firmed 58 cents at $53.17 a barrel.
댓글