EQUITIES
Global stocks are heading to end the week higher, as fears over a tightening of monetary policy subsided.
In Asia, the broader Hang Seng index climbed 2.11% by Friday afternoon in Hong Kong. Mainland Chinese stocks also edged higher, with the Shanghai Composite up 0.07%. The Nikkei 225 in Japan gained 0.66%, the South Korea’s KOSPI jumped 0.98%, and In Australia, the S&P/ASX 200 climbed 1.08%.
OIL
Oil prices hovered around a two-month high, supported by the prospect of an EU ban on Russian oil and the coming summer driving season in the U.S.
Brent crude futures for July was down 3.12% to $113.89 a barrel, after rising to as high as $118.17 earlier in the session. The benchmark was on track for a gain of about 4% this week, its biggest weekly jump in 1-1/2 months.
U.S. crude was flat at $114.22 a barrel. Set for a weekly gain of about 0.7%.
CURRENCIES
The dollar index fell en route to a second straight weekly decline, as traders lowered Fed’s rate hike expectations amid signs the central bank might slow or even pause its tightening cycle in the second half of the year. A rally in Asian stocks also sapped demand for the greenback as a haven.
The dollar index fell as low as 101.43 for the first time since April 25, further pulling away from its 20-year peaks hit two weeks ago. The index was last at 101.599.
The yield on benchmark 10-year Treasury notes was steady at 2.752% compared with its close of 2.7416% on Thursday. It had hit a three-year high of 3.2030% earlier this month. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 2.4618% compared with a close of 2.4778%.
Australian dollar changed hands at $0.7139 following the retail sales data released earlier today. It continues to hold above the $0.705 level after momentarily fell earlier in the week.
Better risk sentiment did not help bitcoin however, which slipped 2.38% to around $28,936, continuing this week's gradual decline from the psychological $30,000 level.
GOLD
Gold prices firmed as the dollar continued to weaken and helped put bullion on track for a second straight weekly rise.
Spot gold was up 0.20% at $1,854.20 per ounce. U.S. gold futures were up 0.26% at $1,858.70.
Spot silver dipped 0.2% to $21.95 per ounce but heading for about 1.5% so far this week. Platinum was flat at $950.28, and palladium gained 0.1% to $2,015.96, was set for a weekly gain of about 3%, its most since early April.
ECONOMIC OUTLOOK
Shares on Friday were cautiously higher on Friday as it extended overnight global gains, with fears over monetary policy tightening subsiding slightly, with investors took comfort from Federal Reserve minutes suggesting it could pause its rapid rate hikes later this year.
Minutes of the Fed's May 3 to 4 policy meeting released on Wednesday highlighted, as the market expected, that most participants favour additional 50-basis point rate hikes in the June and July meetings. Consequently, many thought big, early hikes would allow room to pause later in the year to assess the effects of that policy tightening.
Markets also remain attuned to the conflict in Ukraine, with a U.S. official saying Russia is making “incremental progress” in the Donbas region. Russia’s Defense Ministry claimed overnight that it will allow foreign ships to leave ports on the Black Sea and Sea of Azov, according to state news agency Interfax, amid mounting concerns about rising global food prices.
