European Open Market Briefing – 08/08/2017 – by Arjun Lakhanpal

August 8, 2017 by

In Asian Equity Markets Japan’s Nikkei index slid on Tuesday, with weak financials offsetting gains in the steel sector which rose on a strong earnings outlook. The Nikkei fell 0.2 percent to 20,012.59 by midmorning trade, after opening slightly higher. The broader Topix shed 0.3 percent to 1,635.14. MSCI’s broadest index of Asia-Pacific stocks outside Japan gave up modest early gains to be barely changed, though it was still within a whisker of its recent decade high. South Korea’s market fell 0.2 percent while China’s main markets were also down a shade in thin trade.

In Currency Markets the dollar inched down slightly in Asian trading on Tuesday, but maintained most of the gains it made on last week’s robust employment data that kept hope alive that the U.S. Federal Reserve could still increase interest rates this year. The dollar edged down 0.1 percent to 110.64 yen and lost some ground against the euro, which was up 0.1 percent at $1.1809. Against the yen, the euro was steady on the day at 130.67, down from last Wednesday’s high of 131.40 yen, its most elevated since February 2016. The Aussie added 0.1 percent to $0.7918, moving back toward its recent two-year peak of $0.8066 touched in late July. The dollar index was down 0.1 percent at 93.325.

In Commodities Markets oil prices fell further in Asian trading on Tuesday following a recovery in output at Libya’s largest oil field and as doubts about OPEC-led production cuts continue to weigh on the market. Global benchmark Brent crude futures were down 0.4 percent, at $52.14 a barrel falling 0.1 percent in the previous session. U.S. crude futures were down 0.4 percent, at $49.21 a barrel, having fallen 0.4 percent on Monday. Spot gold rose 0.2 percent to $1,259.43 per ounce. In other precious metals, silver rose 0.3 to $16.28 per ounce. Platinum gained 0.4 percent to $966.90 per ounce and palladium inched 0.2-percent higher to $887.30 per ounce.

In US Equity Markets  the Dow edged up to its ninth record closing high in a row while the S&P ended slightly higher on Monday, with consumer and technology sector gains offsetting losses in energy. The Dow Jones Industrial Average rose 0.12 percent, to close at 22,118.42. The S&P 500 climbed 0.16 percent, to 2,480.91 and the Nasdaq Composite  added 0.51 percent, to end at 6,383.77. The S&P’s consumer staples index, up 0.7 percent, and its technology index, up 0.6 percent were the benchmark’s leading sectors on the day. Tyson Foods rose 5.7 percent after the No. 1 U.S. meat processor reported greater-than-expected quarterly profit and sales.

In Bond Markets Japanese government bond prices were mostly steady on Tuesday after an auction of 30-year debt proceeded smoothly and drew ample investor demand. The two-year yield was flat at minus 0.110 percent and the 10-year yield inched down half a basis point to 0.070 percent. The 30-year yield was flat at 0.875 percent. U.S. 10-year yields fell to 2.263 percent from 2.269 percent late on Friday. U.S. 30-year bonds yielded 2.844 percent, unchanged from the previous day.