European Open Market Briefing – 11/07/2017 – by Arjun Lakhanpal
July 11, 2017In Asian Equity Markets Japan’s Nikkei index edged up on Tuesday morning, as a weaker yen supported many export-oriented stocks, while tech shares attracted buyers on the back of the strong Nasdaq performance overnight. The Nikkei rose 0.2 percent to 20,126.30 in mid-morning trade. The broader Topix rose 0.3 percent to 1,620.94. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6 percent, while Australian stocks pared some of its earlier losses. China stocks were mixed as blue-chips firmed while small-caps extended falls on expectations of more equity supply. The CSI300 index rose 0.5 percent, but the Shanghai Composite Index shed 0.2 percent.
In Currency Markets the dollar’s advance against its major peers slowed on Tuesday as a rise in sovereign bond yields paused, with investors awaiting comments from Federal Reserve Chair Janet Yellen for fresh cues on policy direction. The dollar was 0.1 percent higher at 114.190 yen following a rise to a two-month high of 114.300 overnight. The euro was effectively flat at $1.1394 after inching down about 0.1 percent the previous day. The Australian dollar inched up 0.2 percent to $0.7619 as the greenback’s broader advance slowed. The New Zealand dollar fell 0.5 percent to $0.7238 on lackluster local data showing that electronic retail card spending remained unchanged in June.
In Commodities Markets oil prices edged up on Tuesday, lifted in part by a strong demand outlook for the coming weeks, but overall market conditions remain weak on the back of ample supplies and a more subdued outlook for long-term demand. Brent crude futures were at $47.07 per barrel, up 0.4 percent, from their last close. U.S. West Texas Intermediate crude futures were at $44.56 per barrel, up 0.4 percent. OPEC exported 25.92 million bpd in June, 450,000 bpd more than in May and 1.9 million bpd more than a year earlier. Spot gold edged 0.2 percent lower to $1,212.00 an ounce, moving back toward near four-month lows touched in the previous session.
In US Equity Markets stocks edged higher on Monday, led by gains in technology stocks as investors were optimistic ahead of earnings. The Dow Jones Industrial Average fell 0.03 percent, to end at 21,408.52, the S&P 500 gained 0.09 percent, to 2,427.43 and the Nasdaq Composite added 0.38 percent, to 6,176.39. The S&P 500 technology index was up 0.8 percent, followed by a 0.6 percent gain in the materials index. The healthcare sector was down 0.3 percent as investors waited for clarity on the healthcare legislation overhaul proposed in Washington. Amazon.com Inc shares rose 1.8 percent ahead of its popular Prime Day shopping festival. Shares of Best Buy fell 6.3 percent on news that Amazon was planning to roll out a Geek Squad competitor.
In Bond Markets U.S. Treasury yields fell on Monday, in line with weak European markets, as sharp gains following Friday’s strong U.S. non-farm payrolls report prompted investors to consolidate positions. In late trading, benchmark 10-year Treasury yields fell to 2.373 percent, from 2.393 percent last Friday. U.S. 30-year yields slid to 2.927 percent, from 2.935 percent last Friday. The yield on Germany’s 10-year government bond was headed for its biggest one-day fall in almost four weeks, down 4 basis points at 0.54 percent.
