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Yen Rises, S&P 500 Futures Dip on Middle East Woes: Markets Wrap
(Bloomberg) -- The risk-on sentiment that ushered in the new year took a hit on Friday as tensions flared in the Middle East, buoying the yen and sending U.S. equity futures lower. Oil surged.Stocks in Asia reversed gains and Treasury futures advanced as news broke that a U.S. airstrike in Baghdad reportedly killed a top Iranian commander. Risk appetite that lifted the S&P 500 to a record high Thursday is being dented as tensions rise between Tehran and Washington. “We are moving potentially from proxy (Iran) versus proxy (Saudis & U.S.) to potentially direct Iran-backed forces and U.S. forces,” said Kay Van-Petersen of Saxo Capital Markets Pte. In Singapore. But he added that “people are still not back on their desks fully until next week to mid-January, so illiquidity could give us some overreaction to the downside.”Stocks had begun 2020 strong as traders returned from holidays to news of policy support from China’s central bank to lift its economy. President Donald Trump earlier this week said he expects to sign the first phase of a trade deal with China on Jan. 15, though Beijing has yet to confirm the date. Investors on Friday will get the latest read on the health of the world’s biggest economy, with U.S. ISM manufacturing data due.The airstrike lifted London’s Brent crude to $69.16 a barrel, the highest since the attacks on Saudi Arabian oil infrastructure in September that knocked out as much as 5% of global supply. New York’s West Texas Intermediate crude touched $63.84 a barrel, the highest intraday level since May. Gold prices also rose as investors sought haven in bullion.“It really depends on how Iran responds,” Moh Siong Sim, foreign exchange strategist at Bank of Singapore Ltd. told Bloomberg TV. “It’s too early to tell.”Here are some events to watch for this week:Federal Open Market Committee minutes will be released on Friday.U.S. ISM manufacturing is due Friday. The Institute for Supply Management’s PMI is forecast to show a contraction for a fifth straight month.These are some of the most recent moves in major markets:StocksFutures on the S&P 500 fell 0.8% as of 11:26 a.m. in Hong Kong. The underlying gauge rose 0.8% on Thursday.South Korea’s Kospi index slid 0.1%.Hong Kong’s Hang Seng and the Shangahai Composite retreated 0.2%.Australia’s S&P/ASX 200 Index rose 0.8%.Futures on the Euro Stoxx 50 index declined 0.3%. CurrenciesThe yen gained 0.5% to 108.07 per dollar.The offshore yuan held at 6.9634 per dollar.The euro bought $1.1172.The pound was at $1.3130.BondsThe yield on 10-year Treasuries fell about four basis points to 1.88% on Thursday. Futures gained 0.4% with cash Treasuries shut due to the Tokyo holiday.Australia’s 10-year yield declined nine basis points to 1.25%.CommoditiesWest Texas Intermediate crude oil rose 2.8% to $62.90 a barrel.Gold rose 0.6% to $1,539.10 an ounce.\--With assistance from Gregor Stuart Hunter and Alexander Kwiatkowski.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna OssingerFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stock-futures-gain-p-214938245.html?.tsrc=rss
(Bloomberg) -- The risk-on sentiment that ushered in the new year took a hit on Friday as tensions flared in the Middle East, buoying the yen and sending U.S. equity futures lower. Oil surged.Stocks in Asia reversed gains and Treasury futures advanced as news broke that a U.S. airstrike in Baghdad reportedly killed a top Iranian commander. Risk appetite that lifted the S&P 500 to a record high Thursday is being dented as tensions rise between Tehran and Washington. “We are moving potentially from proxy (Iran) versus proxy (Saudis & U.S.) to potentially direct Iran-backed forces and U.S. forces,” said Kay Van-Petersen of Saxo Capital Markets Pte. In Singapore. But he added that “people are still not back on their desks fully until next week to mid-January, so illiquidity could give us some overreaction to the downside.”Stocks had begun 2020 strong as traders returned from holidays to news of policy support from China’s central bank to lift its economy. President Donald Trump earlier this week said he expects to sign the first phase of a trade deal with China on Jan. 15, though Beijing has yet to confirm the date. Investors on Friday will get the latest read on the health of the world’s biggest economy, with U.S. ISM manufacturing data due.The airstrike lifted London’s Brent crude to $69.16 a barrel, the highest since the attacks on Saudi Arabian oil infrastructure in September that knocked out as much as 5% of global supply. New York’s West Texas Intermediate crude touched $63.84 a barrel, the highest intraday level since May. Gold prices also rose as investors sought haven in bullion.“It really depends on how Iran responds,” Moh Siong Sim, foreign exchange strategist at Bank of Singapore Ltd. told Bloomberg TV. “It’s too early to tell.”Here are some events to watch for this week:Federal Open Market Committee minutes will be released on Friday.U.S. ISM manufacturing is due Friday. The Institute for Supply Management’s PMI is forecast to show a contraction for a fifth straight month.These are some of the most recent moves in major markets:StocksFutures on the S&P 500 fell 0.8% as of 11:26 a.m. in Hong Kong. The underlying gauge rose 0.8% on Thursday.South Korea’s Kospi index slid 0.1%.Hong Kong’s Hang Seng and the Shangahai Composite retreated 0.2%.Australia’s S&P/ASX 200 Index rose 0.8%.Futures on the Euro Stoxx 50 index declined 0.3%. CurrenciesThe yen gained 0.5% to 108.07 per dollar.The offshore yuan held at 6.9634 per dollar.The euro bought $1.1172.The pound was at $1.3130.BondsThe yield on 10-year Treasuries fell about four basis points to 1.88% on Thursday. Futures gained 0.4% with cash Treasuries shut due to the Tokyo holiday.Australia’s 10-year yield declined nine basis points to 1.25%.CommoditiesWest Texas Intermediate crude oil rose 2.8% to $62.90 a barrel.Gold rose 0.6% to $1,539.10 an ounce.\--With assistance from Gregor Stuart Hunter and Alexander Kwiatkowski.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna OssingerFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stock-futures-gain-p-214938245.html?.tsrc=rss
