Global Market Analysis
Global Market Analysis – The dollar fell against major market currencies as stocks and stock futures rose in international markets
US and European stock futures climbed along with Asian stocks in Friday’s trading. Tech stocks continued to lead the rise, alleviating concerns about a bumpy economic recovery. The dollar fell.
Shares of Hong Kong, China, and Japan rose after the record refresh of the Nasdaq 100 Index. Volumes are below average. South Korean shares recovered some of Thursday’s losses after data showed that the decline in exports slowed down. S&P 500 and Euro Stoxx 50 index futures rose. The interest rate of 10-year Treasury bonds in the USA did not change much. The offshore yuan hits a seven-month high.
Investors’ interest in internet and software companies continues due to their strong balance sheets and products that are positively affected by social distance measures. Among the major groups in the S&P 500 Index, technology companies have risen the most this year. Despite concerns about high valuations, the sector continues to accelerate in the stock market.
With progress in testing, vaccine news also plays an important role in investor perception. Pfizer Inc. and BioNTech SE announced that the coronavirus vaccine will be ready for authorities review by October and expect it to be clinically successful.
Applications for unemployment benefits rose unexpectedly to over 1.1 million on Thursday.
“We expect the recovery in the economy to continue,” said Kathy Jones, Charles Schwab bond strategist. “But the pace will likely drop. This could set a barrier to the upper band of bond yields.”
Chib confirmed his plans to meet with US officials to assess progress in the pioneering trade deal. Speaking earlier this week, US President Donald Trump said that China canceled the plans because he was not satisfied with its role in the Covid-19 pandemic.
Oil prices soared, heading for a third weekly gain. Gold did not change much and remained below 2 thousand dollars.
- S&P 500 Index futures rose 0.2 percent at 06:45 London time. The underlying index rose 0.3 percent on Thursday.
- The Topix Index in Japan rose 0.3 percent.
- In Hong Kong, the Hang Seng Index rose 1.3 percent.
- The Shanghai Composite Index rose 0.5 percent.
- In South Korea, the Kospi Index climbed 1.8 percent.
- Euro Stoxx 50 futures rose 0.3 percent.
- The Bloomberg Dollar Spot Index (BBDXY) fell 0.1 percent.
- Euro / Dollar parity was traded at 1.1877 with 0.1 percent plus.
- The yen rose 0.2 percent to 105.60 against the dollar.
- The offshore yuan rose 0.1 percent to 6.8978.
- The yield of 10-year Treasury bonds in the US remained at 0.65 percent.
- Australian 10-year yield was 0.88 percent, up 3 basis points.
- WTI oil rose 0.2 percent to $ 42.91 a barrel.
- An ounce of gold traded at $ 1,946.25.