EQUITIES
Shares in Asia-Pacific were mixed on Friday trade. In Japan, the Nikkei 225 fell 0.40% while in South Korea, the KOSPI slipped 0.18%, and the Singapore’s FTSE Straits Times Index traded 0.09% lower.
Meanwhile in Australia, the S&P/ASX 200 jumped 0.53% higher, and the India’s S&P BSE Sensex index rose 0.25%. The Shanghai composite and the Hong Kong’s Hang Seng index both rose some 0.14%.
Overnight on Wall Street, the S&P 500 lost 0.4%, while the Nasdaq Composite suffered a 1% slide. The Dow Jones Industrial Average fared relatively better, slipping 0.1%.
OIL
Crude oil retreated from more than 2-year highs on Friday after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.
The Brent trade at $71.17 per barrel, and U.S. crude futures traded at $68.71 per barrel.
Overnight, the Brent closed at $71.31 while WTI ended at $68.81 per barrel.
CURRENCIES
The dollar index jumped to a 3-week high against a basket of its peers on Friday, on robust jobs data and on the possibility of it driving policy tightening. The index rose 0.7% on Thursday to stand at 90.557 on Friday.
Benchmark 10-year U.S. Treasury yields were flat on Friday, around 1.630%.
Bitcoin slipped on Friday on Elon Musk’s tweet hinting at a breakup with the cryptocurrency, though it remains on course for its best weekly gain in a month as it tries to recover from May’s crash. Bitcoin is up some 6% this week and was last traded around $37,680.
GOLD
Gold prices slipped to a more than 2-week low on Friday, weighed down by a stronger dollar and an uptick in bond yields.
The spot gold declined to trade at $1,869.20 an ounce and slipped to $1,871.40 per ounce for gold futures. Previously closed at $1,870.80 and $1,873.30, respectively.
Silver slipped 0.15% to $27.435 per ounce and was on track for the biggest weekly fall since late March. Palladium rose 0.16% to $2,831.00 and platinum was down 0.71% at $1,154.30.
ECONOMIC OUTLOOK
Asian stocks largely declined on Friday, as signs of a strengthening U.S. recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus.
Technology shares regionally taking a hit. Investor sentiment on the sector waned after U.S. President Biden on Thursday expanded restrictions on American investments in certain Chinese firms with alleged ties to the country’s military and surveillance efforts. 59 companies were named. An uptick in the U.S. Treasury yields also hurting tech shares.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped below 400,000 last week, while U.S. private employers stepped up hiring in May.
Among key events to watch today including the U.S. May jobs report & factory orders, Europe retail sales, and Reserve Bank of India’s interest rate decision.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.911 and 110.077.
- Support line of 109.375 and 109.209.
Commentary/ Reason:
The dollar jumped to a 2-month high of 110.326 yen earlier on the day, before traded flat around its opening at 110.263.
The pair climbed following the strength in 10-year T-note yields that undercut the yen.
Though the yen’s decline was held by the 10-year Japan JGB bond yield that also climbed to a 3-week high Thursday of 0.090%, which improved the yen’s interest rate differentials.
The USD/JPY pair has found support and is making moves towards the recent ceiling at the 110.53 price level. Previously, price action rejected this price area, therefore strong bullish conviction will be required.
