Tuesday, June 18, 2024 1:40:00 AM - Markets open
VN-INDEX 1,274.77 -5.14/-0.40%
HNX-INDEX 243.16 -0.80/-0.33%
UPCOM-INDEX 98.09 +0.03/+0.03%
Dollar firm in Asia, resource shares on the run
Reuters - 3/9/2017 9:25:51 AM
 (0 ratings. You must sign in to rate.)
The dollar stood firm in Asia on Thursday and bond yields spiked after super-strong U.S. jobs data made a rate hike a near certainty, while oil nursed bruising losses as U.S. stockpiles swelled past all expectations.

With energy stocks on the run, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.6 percent. Australia's main index eased 0.1 percent, while its resources sector fell more than 2 percent.

Japan's export-heavy Nikkei managed to take heart from a softer yen and added 0.3 percent.

Economic data out of China continued to surprise with consumer inflation coming in well under expectations at an annual 0.8 percent, largely due to falling food prices.

Yet producer prices still rose at the fastest pace since 2008, keeping alive hopes that China had stopped exporting disinflation to the rest of the world.

That inflationary pulse was timely given oil prices dived 5 percent on Wednesday to the lowest this year as U.S. crude inventories ballooned to a record.

The market did pare a little of the losses on Thursday with U.S. crude up 41 cents at $50.69, while Brent crude bounced 49 cents to $53.60 a barrel.

Wall Street had been sideswiped by the retreat in oil, with energy stocks losing 2.5 percent in their worst performance since mid-September.

The Dow fell 0.33 percent, while the S&P 500 lost 0.23 percent and the Nasdaq added 0.06 percent.

Interest rate-sensitive real estate stocks also took a hit after the ADP employment report showed private payrolls surged by 298,000 last month, far above expectations.

NO STOPPING THEM

Tom Porcelli, chief U.S. economist at RBC Capital Markets, said the report was so strong it meant the payrolls report on Friday would have to be unbelievably dire to deter the Fed from hiking next week.

"There is almost no number that would stop them," said Porcelli. "It would take an extreme event for the Fed to take a pass at this point."

Indeed, he noted the ADP surprise meant there was a real chance payrolls could beat expectations, perhaps by a lot.

"On the face of it, ADP is consistent with private payrolls of about 340,000," he said. The current median forecast is for a rise of 190,000.

With a hike seemingly certain, and more likely over the year, yields on two-year Treasury notes climbed to 1.378 percent, the highest since August 2009.

That widened its premium over German debt to a meaty 220 basis points, the largest gap since early 2000. That is a burden for the euro that is likely to only get heavier as the European Central Bank seems wedded to its super-easy policy.

The central bank meets later Thursday and is considered unlikely to tighten until the latter part of this year or early 2018, a Reuters poll found last week.

The single currency was stuck at $1.0540 in Asia on Thursday, well off a $1.0640 top hit early in the week.

The dollar index was last up a whisker at 102.110, and close to a March 2 peak of 102.26. The dollar edged up to 114.52 yen, having been as high as 114.75.

The firmer dollar pressured a host of commodities from iron ore to copper, which touched a seven-week trough. [MET/L]

Spot gold was nursing a grudge at $1,206.75 having struck a five-week low as higher interest rates raised the opportunity cost of holding the non-yielding metal.
Newer News
25/05 Gov't defines electronic money, Bitcoin not included
09/12 Measures needed to help SMEs tap ASEAN market: seminar
24/08 Upstream oil businesses profit from higher rents and limited supplies
06/03 Taxing second homes must be studied carefully: experts
21/09 Central banks set to hit peak rates at faster pace
23/03 Policymakers fear high inflation and unemployment
17/03 Current global inflation a worrisome situation
26/01 ASEAN+3 economic prospects positive in 2022
30/12 Cryptocurrency continues to be attractive investment channel next year
13/08 Biden, Harris vow to 'rebuild' America post-Trump
Older News
09/03 Dollar stands tall on strong U.S. ADP job data, higher Treasury yields
09/03 OPEC cut 40 percent more in February than pledged in oil deal: Kuwait
09/03 Dow, S&P 500 dip as energy shares tumble
08/03 Dollar advance bogs down, U.S. jobs report comes into view
08/03 Asian shares slip after strong start to week on U.S. cues
08/03 Pharma, bank stocks pull Wall Street lower
07/03 Asian stocks flat, euro slides on French election concerns
07/03 Wall Street slips on wiretap accusation, geopolitical worries
03/03 Oil ticks up after 3-day decline, Russian output cuts stall
03/03 Dollar firm, shares ease in Asia as Fed hike looms
 
Newsletter Signup
Top Stories
Surge in newly opened securities accounts recorded in May
VN adds over 110,000 new securities accounts in April, bringing total to 7.7 million
Cautious rise amid low supply and cash flow, investors advised to monitor resistance area
Interest rates to rise but not have major impact on stock market: economist
Businesses concerned about rising exchange rate pressure
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,274.77 -5.14/-0.40%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.