European Open Market Briefing – 10/11/2017 – by Arjun Lakhanpal

In Asian Equity Markets Japan’s Nikkei index fell on Friday, with tech shares hurt after a decrease by their U.S. counterparts, while Toshiba Corp stumbled on dilution fears after reports it will issue new shares to raise funds. The Nikkei ended the day down 0.8 percent at 22,681.42. The broader Topix shed 0.7 percent to 1,800.44. MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.2 percent. In Greater China, the Shanghai Composite fell 0.05 percent and the Hang Seng Index edged up 0.01 percent. The Australian index, S&P/ASX200, lost 0.36 percent.

In Currency Markets the dollar licked its wounds on Friday, on track for weekly losses after it fell on disappointment with a tax bill put forth by U.S. Senate Republicans that would delay expected corporate tax cuts. The dollar inched 0.1 percent lower to 113.38 yen, down 0.6 percent for the week and well below its eight-month high of 114.737 logged on Monday.  The euro was up slightly on the day at $1.1646, 0.3 percent higher for the week and holding well above a 3-1/2-month low of $1.1553 plumbed on Tuesday. Sterling inched down 0.1 percent to $1.3141. The dollar index, which gauges the greenback against a basket of six major rivals, inched up 0.1 percent to 94.493 after skidding 0.36 percent in the previous session.

In Commodities Markets oil markets were little changed on Friday, supported by ongoing supply cuts and strong demand which have resulted in a tightening market, although the prospect of rising U.S. output capped prices.  Brent crude was at $63.81 per barrel, down 12 cents from its last close but within $1 of a more than two-year high of $64.65 reached earlier this week. U.S. West Texas Intermediate crude was at $57.08 per barrel, down 9 cents but also not far from this week’s more than two-year peak of $57.92 a barrel. Spot gold was nearly unchanged at $1,285.28 per ounce and silver rose 0.1 percent to $17.016 per ounce. Palladium fell 0.4 percent at $1,006.50 an ounce and platinum was down 0.2 percent at $935.40 an ounce.

In US Equity Markets stocks fell on Thursday, weighed down by losses in Microsoft and other technology issues, as investors turned their attention to a U.S. Senate Republican plan that would delay expected corporate tax cuts. The Dow Jones Industrial Average lost 0.43 percent to end at 23,461.94, while the S&P 500  declined 0.38 percent to 2,584.62. The Nasdaq Composite fell 0.58 percent to 6,750.05. Six of the 11 major S&P 500 sectors fell, with industrials down 1.28 percent and the technology index off 0.85 percent. Macy’s jumped 10.98 percent after the department store operator’s profit came in above expectations. Walt Disney Co lost 2.0 percent after the bell following its quarterly report while chipmaker Nvidia rose nearly 2.0 percent after its report.

In Bond Markets Japanese government bonds edged down on Friday, taking their cue from higher U.S. Treasury yields. The benchmark 10-year cash JGB yield was up one basis point at 0.035 percent, while the 10-year JGB futures contract finished down 0.11 point at 150.84. In the superlong zone, the 20-year JGB yield was flat at 0.570 percent, and the 30-year JGB yield added half a basis point to 0.800 percent. The 40-year JGB yield edged down one basis point to 0.960 percent after earlier touching 0.945 percent, its lowest since late April. The 10-year Treasury yield rose to 2.354 percent in Asian trading, compared with its U.S. close on Thursday of 2.331 percent.

Economic Calendar

• 10:30 GMT+0 UK Manufacturing Production m/m