EQUITIES
Shares in Asia-Pacific were higher on Friday trade. Japan’s Nikkei 225 and Australia’s S&P/ASX 200 erased early losses to rise 0.13% and 0.34%, respectively. In South Korea, the KOSPI extended gains to trade up 0.62% while mainland Chinese market, the Shanghai composite rose 0.42% and the Hong Kong’s Hang Seng index advanced 0.52%. The India’s S&P BSE Sensex index added 0.83%, and the Singapore’s Straits Times index gained 0.68%.
Overnight on Wall Street, investors piled into economically sensitive stocks on the reflation trade, driving the Dow Jones Industrial Average to a record high close on Thursday. The Dow rose 0.9%, the S&P 500 gained 0.8% and the Nasdaq Composite added 0.4%.
OIL
Oil prices edged up as global economic recovery and easing travel curbs in the U.S. and Europe buoyed the fuel demand outlook, although the surging pandemic in India, Japan, and Brazil capped prices.
The Brent crude futures traded at $68.53 per barrel, and U.S. crude futures traded at $65.15 per barrel. Both Brent and WTI are on track for a second weekly gain.
Overnight, the Brent closed at $68.09 while WTI ended at $64.71 per barrel.
CURRENCIES
The safe-haven dollar sank and was on track for a 0.4% decline this week against a basket of major peers on Friday ahead of the jobs report, as firmness in global stock markets boosted risk appetite. The dollar index dipped to 90.87.
Treasury yields hovered near the lowest level this month, further removing support for the greenback, after bond traders largely shrugged off the better-than-expected initial jobless claims data and waited for the non-farm payrolls report to provide market direction. The 10-year Treasury note yielded at 1.568%, close to a 2-week low.
Cryptocurrency ether hit a fresh record high of $3,607.76 and last traded at $3,396. Bitcoin fetched $55,624, trapped in a range between $53,000 and $59,000 over the past week.
GOLD
Gold headed for a 2.5% weekly gain on the weaker dollar and easing of Treasury yields.
The spot gold gained to trade at $1,818.70 an ounce and rose to $1,820.60 per ounce for gold futures. Previously closed at $1,814.70 and $1,816.00, respectively.
ECONOMIC OUTLOOK
Asian stocks broadly advanced Friday after U.S. indices gained on positive economic data and solid corporate earnings.
Traders braced for a key U.S. jobs report later Friday that could provide clues on when the Federal Reserve will ease back on monetary stimulus. Data on Thursday showed the Labor Department report for initial claims for state unemployment benefits totalled a seasonally adjusted 498,000 for the week ended May 1, fell below 500,000 for the first since the COVID-19 pandemic started more than a year ago.
News that the Biden administration is to keep some Trump-era limits on U.S. investments in some Chinese companies rattled equity markets movement.
Some key events to watch today including U.S. jobs report, wholesale inventories and consumer credit, and UK construction PMI.
Among U.S. corporate earnings due today including CIGNA and Enbridge.
To date, number of confirmed worldwide cases for COVID-19 pandemic has surpassed 155.65 million, recording more than 3.25 million fatality globally.
TECHNICAL OUTLOOK
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 109.432 and 109.607.
- Support line of 108.866 and 108.691.
Commentary/ Reason:
Against the yen, the dollar changed hands at 109.061 yen, almost flat so far on the week as its rebound since late April has lost steam.
The dollar gave up an early advance and moved lower after a decline in T-note yields gave boost to the yen.
The yen meanwhile weighted as after Japan’s Nikkei Stock Index rallied to a 2-week high. The yen also weakened after Kyodo reported Thursday that the Japanese government plans to extend its ongoing pandemic state of emergency from May 11 until May 31.
The USD/JPY is stumbling and struggling to maintain momentum for the rally. A series of fluctuations suggest that neither buyers nor sellers have the appetite to drive price action. The ascending trendline remains as a key support level. Momentum indicators have flattened in neutral/bullish territory.
