Aussie Drops in Listless Asia Trading; Stocks Flat: Markets Wrap
The standout move in currency markets was the Australian dollar, sinking 0.4 percent against the greenback, following an unexpected drop in consumption. Japanese equities were flat on lower than average volumes, amid holiday-induced closures in Hong Kong, China, and South Korea. Data overnight showed American services industries climbed at the fastest pace in 12 years, while private jobs numbers met expectations. The dollar held near its recent 11-week high and Treasury yields inched up to 2.32 percent as markets weigh who Trump will choose to helm the Federal Reserve.
Oil is heading for its worst week since the start of July, trading below $50 a barrel, as a flood of U.S. crude reignited concerns over a global glut. Russian President Vladimir Putin said a possible extension of a deal with OPEC to reduce production, due to expire in March, “should be at least until the end of 2018.”
President Donald Trump wreaked havoc on Puerto Rico bonds after suggesting its $74 billion of debt should be wiped out in the wake of last month’s hurricane. Its benchmark notes plunged to a record low 30.25 cents on the dollar, but ticked up after his budget chief warned he shouldn’t be taken literally.
Emerging-market stocks are showing signs of shrugging off declines from last month that were triggered by concern a stronger dollar would hurt developing nations’ currencies. The MSCI Emerging Markets Index is up 1.9 percent this week, more than twice the gains seen on the global gauge of equities.
Here are the key events coming up during the remainder of this week:
Minutes of the last ECB meeting are scheduled for Thursday. The U.S. September nonfarm payrolls report, likely to be affected by the impact of hurricanes on southern states, comes out on Friday.
Here are the main moves in markets: Stocks
Japan’s Topix index slipped 0.2 percent, halting a two-day gain. Australia’s S&P/ASX 200 Index was flat, while Taiwan’s Taiex was up 0.5 percent. Futures on the S&P 500 Index were little changed. The underlying gauge rose 0.1 percent to 2,537.74 on Wednesday. The MSCI Emerging Market Index was little changed after climbing the past four days. Last month’s decline was the gauge’s first monthly drop this year.
Currencies
The Bloomberg Dollar Spot Index added 0.1 percent, moving in a narrow range over the past three days. The Aussie bought 78.31 U.S. cents, down 0.4 percent. The yen was flat at 112.73 per dollar. The euro was at $1.1760 after a rise of 0.1 percent Wednesday.
Bonds
The yield on 10-year Treasuries was steady at 2.32 percent, trading at the 200-day moving average. Yields on Spanish 10-year bonds rose for a third day Wednesday, to 1.78 percent, with the premium over similar German debt reaching the widest in five months. Catalan President Carles Puigdemont kept the rest of Spain guessing if and when he will declare independence, prolonging the uncertainty over the breakaway region’s plans in its confrontation with the government in Madrid. The yield on India’s benchmark 6.79 percent bonds due May 2027 rose two basis points to 6.72 percent, extending Wednesday’s 6-basis point gain after the central bank left its key interest rate unchanged and reiterated its neutral policy stance.
Commodities
West Texas Intermediate crude was little changed at $49.92 a barrel. Gold added 0.1 percent to $1,275.69 an ounce, erasing earlier losses.
