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Markets Update , Feb 3


  • Asian Stocks close mixed on Friday
  • US, European Stocks  Gain as Bonds Drop Before US Jobs Data

Asian stocks ended mixed with the Nikkei finishing flat as investors awaint the release of US jobs data report, which will set the tone for the Fed´s policy outlook.

The Shanghai composite Index declined 19 points or 0.6% to close at 3140.17 on Friday February 3rd 2017 after the PBoC surprised markets by hiking short-term repo rates and the Caixin Manufacturing PMI came well below expectations. It was the first trading day after the long-week Lunar New year holidays. Considering other major stock markets in Asia, equities finished mixed:

  • the Hang Seng went down 55 points or 0.2% and the
  • S&P/ASX 200 lost 24 points or 0.4%
  • while the Kospi gained 2 points or 0.1%
  • and the Nikkei 225 finished flat after PMI data showed the services sector slowed and the Bank of Japan conducted its first unlimited purchase of government bonds at a 10-year maturity.
  • On the week, the Nikkei 225 lost 2.8%, the Hang Seng dropped 1%, the Kospi fell 0.5% and the S&P/ASX 200 slid 1.6%.

The dollar raised, European stocks gained before the US Jobs report that will show as economist forecast, jobs expanded at a faster rate in January.

This is the exchanges picture mid -day:




Currencies The Bloomberg Dollar Spot Index fell 0.3 percent. The measure is down 2.5 percent so far in 2017.
The pound slipped 0.3 percent to $1.2492, extending its loss over the week to 0.5 percent. The yen slid 0.5 percent and the euro was little changed.
Russia’s ruble pared an earlier loss and bonds retreated after the central bank left its key rate unchanged at 10 percent and said the potential for a cut in the first half of the year has diminished.
Bonds The yield on 10-year U.S. Treasuries rose one basis point to 2.48 percent.
The yield on German bonds due in a decade also added one basis point to 0.43 percent.
Commodities Oil headed for a third weekly gain as OPEC reached about 60 percent of its output-cut target and the U.S. was said to be planning new sanctions on Iran after a missile test. West Texas Intermediate crude advanced 0.4 percent to $53.74 a barrel and Brent climbed to $56.78.
Gold pared the biggest weekly gain since Jan. 13 as demand rebounded to a three-year high in 2016 as investor concerns over political issues including Brexit spurred demand for a haven. Bullion for immediate delivery slipped 0.2 percent to $1,213.17 an ounce, poised for a weekly increase of 1.9 percent.
Industrial metals declined after after weaker-than-expected factory data and signs of tighter monetary policy in China, highlighting risks of demand slowing. Copper dropped 0.9 percent to $5,832.50 a metric ton and zinc lost 2.6 percent. Nickel fell 1.8 percent as companies in the Philippines pushed back on mine-closure orders that could restrict supply of the metal.


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