In Economy
On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25% in early trade. Asian Market slipped after grim U.S. retail sales figures raised fresh doubts about the strength of the U.S. economy, offsetting optimism on trade talks between the United States and China.
The White House said U.S. President Donald Trump will declare a national emergency to try to obtain funds for his promised U.S.-Mexico border wall, drawing immediate criticism from Democrats.
On Thursday, S&P 500 lost 0.27% , a day after it hit a 10-week high on rising hopes that Washington and Beijing could reach a trade deal.
U.S. retail sales tumbled 1.2% in December, recording their biggest drop since September 2009 as receipts fell across the board.
The shockingly weak report led to economic growth estimates for the fourth-quarter being cut to below a 2.0 percent annualized rate, with the Atlanta Fed forecasting a 1.5 percent growth, much below its previous forecast of 2.7 percent about a week ago.
The collapse in retail sales came along with data showing an unexpected increase in the number of Americans filing claims for unemployment benefits last week.
That prompted Fed fund futures to price in a small chance, about 15%, of a rate cut this year.
U.S. Federal Reserve Governor Lael Brainard said the central bank should stop paring its balance sheet by the end of this year.
The 10-year U.S. Treasuries yield fell to 2.655%, wiping out most of their rise this week.
In Currency Market
The weak U.S. data dented the dollar.
The Dollar fetched 110.50 yen, stepping back from Thursday’s seven-week peak of 111.13.
The weakness in dollar saved the euro from testing its 2018 low of $1.1216. The common currency stood at $1.1295 after having fallen to $1.1248 on Thursday following economic data showing Germany’s economy stalled in the fourth quarter.
The British pound slipped to $1.2800, after touching a near one-month low of $1.2773 after Prime Minister Theresa May lost a symbolic Brexit vote in parliament, weakening her hand as she seeks to renegotiate her withdrawal agreement with Brussels.
In Commodity & Energy Market
Oil prices found support as top exporter Saudi Arabia said it would cut crude exports and deliver an even deeper output cut.
Brent crude futures rose to as high as $64.88 per barrel, their highest level in 12 weeks, on Thursday.
U.S. crude futures rose 0.46% in early Friday trade to $54.66 per barrel.
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