European Open Market Briefing – 09/10/2017 – by Arjun Lakhanpal

October 9, 2017 by

In Asian Equity Markets Chinese stocks climbed on Monday after a week-long break as a disappointing survey on the country’s service sector did little to dent optimism on global growth, while political uncertainty caused turbulence for the Turkish and British currencies. The Chinese blue-chip CSI300 index rose 1.7 percent to heights not seen since late 2015.  Australian stocks still managed to put on 0.5 percent, while Nikkei futures added 0.1 percent even though the cash market was shut. MSCI’s broadest index of Asia-Pacific stocks outside Japan edged up 0.02 percent, having rebounded by 1.7 percent last week.

In Currency Markets the dollar held steady against the yen on Monday, having retreated from 12-week highs set last week, due to renewed focus on geopolitical risks amid concerns that North Korea may be preparing another missile test. The dollar last traded at 112.56 yen, steady on the day. The Turkish lira tumbled amid fresh signs of fraying diplomatic relations between Turkey and the United States. The U.S. dollar rose 3.2 percent against the Turkish lira to 3.7325. The euro edged up 0.1 percent to $1.1745, having pulled up from Friday’s low of $1.1669, its lowest level since Aug. 17. The New Zealand dollar fell to as low as $0.7052, its lowest level since May 30. The dollar index eased 0.1 percent to 93.709.

In Commodities Markets  oil prices edged up on Monday, after a 2 percent slide on Friday, on expectations that Saudi Arabia would continue to restrain its output in order to support prices, and as the amount of rigs drilling for new oil in the United States fell.  U.S. West Texas Intermediate front-month crude futures were trading at $49.48 per barrel, up 0.4 percent, from their last close. Brent crude futures were up 0.3 percent, at $55.78 a barrel. U.S. gold futures for December delivery gained 0.8 percent to $1,284.80 per ounce. Silver was up 0.8 percent at $16.91 an ounce and was near its highest in nearly two weeks. Platinum and palladium were both up nearly 0.4 percent, at $916.24 an ounce and $923.50 an ounce, respectively.

In US Equity Markets  the S&P 500 eased on Friday, ending a six-day run of record highs as the first monthly decline in U.S. nonfarm jobs in seven years dampened sentiment and pharmacy shares fell on Amazon competition fears. The Dow Jones Industrial Average fell 0.01 percent, to end at 22,773.67, the S&P 500 lost 0.11 percent, to 2,549.33 and the Nasdaq Composite added 0.07 percent, to 6,590.18. Walgreens Boots Alliance and CVS Health fell and were among the biggest drags on the S&P 500 after a CNBC report that Amazon was close to a decision on selling prescription drugs. Walgreens shares fell 4.9 percent and CVS was down 4.9 percent, while Amazon shares rose 0.9 percent.

In Bond Markets U.S. Treasury yields advanced on Friday after data showed the world’s largest economy lost jobs last month due to the impact of Hurricanes Harvey and Irma, but details of the report on the unemployment rate and wage growth suggested an improving labor market. In late trading, the 10-year U.S. Treasury note yield was at 2.369 percent, up from Thursday’s 2.35 percent. The 30-year yield was at 2.904 percent, off its strongest level since August 1 of 2.933 percent. U.S. two-year note yields came off a nine-year high and was last at 1.512 percent.