Lira Slammed on Political Risk; China Stocks Gain: Markets Wrap
Adam Haigh, Bloomberg
Turkeys lira tumbled as relations with the U.S. deteriorated, while stocks in Shanghai rose as traders returned from holidays, the key moves in an otherwise lackluster start to the trading week.
The lira at one point was down more than 6 percent as the U.S. and Turkey each suspended visa services for citizens looking to visit the other country. Chinese equities rose following the Golden Week break that saw global equities reach record highs, while Japan, South Korea and Taiwan are closed for holidays. The kiwi dollar sank after final election results over the weekend showed both main parties could form viable coalitions, prolonging the uncertainty resulting from last months vote.
With politics gripping currency markets, traders scrutinized the latest exchange between the leaders of the U.S. and North Korea this weekend. President Donald Trump said that only one thing will work! after years of diplomacy have failed.
Fridays U.S. jobs report showed a spike in hourly wages that bolstered the odds for tighter monetary policy, pushing the chances of a December hike to nearly 80 percent.
Whats coming up this week:
Minutes from the most recent Federal Reserve meeting are due Wednesday. The International Monetary Fund and World Bank hold their annual fall meetings this week. Earnings season begins for major U.S. banks, led by JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. Also reporting will be BlackRock Inc., Dominos Pizza Inc., Samsung Electronics Co., German container company Gerresheimer AG, U.K. grocery wholesaler Booker Group Plc, and Sky Plc.
Here are the main moves in markets: Stocks
The Shanghai Composite rose 1 percent as of 1:22 p.m. in Hong Kong. The Hang Seng index slid 0.4 percent. Futures on the S&P 500 Index added 0.1 percent. The underlying gauge slipped 0.1 percent on Friday. FTSE 100 Index futures were flat in early trading. Gauges in Indonesia and India climbed about 0.3 percent each, while stocks in Malaysia were little changed.
The Bloomberg Dollar Spot Index slid less than 0.1 percent, remaining near the highest in more than 11 weeks. The euro was flat at $1.1733. The pound added 0.2 percent to $1.3098. Traders are watching after the Sunday Times reported Prime Minister Theresa May is planning to overhaul her team of top ministers soon following a chaotic Conservative party conference that cast her premiership in doubt. More on that story here. The lira was at 3.7119 per dollar, down 2.6 percent from Fridays close, and touched as low as 3.8533. The yen added about 0.1 percent to 112.57 per dollar.
The yield on 10-year Treasuries was at 2.36 percent on Friday. Trading is closed for the Columbus day holiday. Australian 10-year government bond yields rose one basis point to 2.83 percent.
West Texas Intermediate crude added 0.4 percent to $49.48 a barrel in Monday trading. The contract decreased 3 percent on Friday. Read more on the OPEC talks here. Gold rose 0.5 percent to $1,283.19 an ounce.Rašyti komentarą