Open June 7th
In Asian Equity Markets indices traded mixed on Friday morning following positive developments overnight on U.S.-Mexico negotiations. The Nikkei 225 in Japan rose 0.28% in morning trade, with shares of robot maker Fanuc gaining 1.23%. In Australia, the ASX 200 gained 0.47% as most of the sectors traded higher. Over in South Korea, however, the Kospi declined slightly. Markets in China and Hong Kong are closed on Friday for a holiday.
In Currency Markets the U.S. dollar was under pressure on Friday and was poised for its worst weekly performance for the year, as investors waited on a key U.S. jobs report that is expected to back expectations for a near-term Federal Reserve rate cut to support a slowing economy. The euro jumped half a percent during the previous session as markets had positioned on a more dovish signal from the ECB and an acknowledgement of weak economic growth in the bloc. The single currency was steady at $1.1275 and was set for a weekly gain of nearly 1%.
In Commodities Markets oil prices rose around 1% on Friday to move further away from five-month lows hit earlier in the week, buoyed by a report that Washington could postpone trade tariffs on Mexico and signs OPEC and other producers may extend crude supply cuts. Brent crude futures were up 50 cents, or 0.8%, at $62.17 a barrel by 0041, having risen earlier to $62.41. They gained 1.7% on Thursday. U.S. West Texas Intermediate crude futures were up 50 cents, or 1%, at $53.09 per barrel, after trading as high as $53.33. They finished the previous session 1.8% higher.
In US Equity Markets indices closed higher after a choppy session on Thursday as investors grew more optimistic on trade after reports that the United States is considering a delay in imposing tariffs on Mexican imports. The S&P 500 gained 0.61%, to 2,843.49 and the Nasdaq Composite added 0.53%, to 7,615.55. The energy sector, which was the hardest-hit last month by heightening trade tensions, rose 1.7% as crude prices made some gains late in the day, making it the biggest percentage gainer of the S&P’s 11 major sectors.
In Bond Markets most U.S. Treasury yields rose to session highs in mid-afternoon Thursday trading in the wake of a Bloomberg report that said the United States is considering delaying tariffs on Mexican imports, which are set to take effect on Monday. The yields on benchmark U.S. 10-year Treasury notes were up 0.30 basis point at 2.126%, while two-year yields were up 4.20 basis points at 1.883%.
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