5 July 2017. Daily Market Updates

Good Morning;
U.S. confirms North Korea missile was ICBM, warns of UN action.  The U.S. confirmed a rocket launched by North Korea on July 4 was an intercontinental ballistic missile, with Secretary of State Rex Tillersoncalling it anew escalation of the threat to the U.S. and its allies that would be brought before the United Nations Security Council.
Asia stocks are poised to steady, Yen heads higher.Markets in Asia looked set to steady after a bout of risk aversion triggered by North Korea’s missile launch, in line with what’s become a pattern of short-lived reactions to the country’s provocations.
Equity-index futures in Japan, Australia and Hong Kong all pointed to small gains for stocks, with U.S. equity and bond markets set to reopen after the July 4 holiday. The yen and gold, which rallied after the missile launch fanned concern North Korea is closer to building a device capable of hitting the U.S., headed
China’s big short looks more like a big squeeze to top investors.Traders who think they’ve found China’s next big short could be setting themselves up for a squeeze.
Markets in Detail
FX:
The yen rose 0.1 percent to 113.27 per dollar as of 3:58 p.m. in New York. The currency tumbled 0.9 percent on Monday.
The Bloomberg Dollar Spot Index was little changed after jumping 0.5 percent in the previous session. The dollar strengthened the most in two weeks Monday after U.S. factories powered up in June at the fastest pace in nearly three years.
Aussie dollar down 0.7% versus USD after RBA July’s meeting.
GBP extended losses after a survey of Britain’s construction sector showed growth cooling in June, adding to signs the ecomomy might be struggling to gain momentum.
The euro was 0.2 percent lower at $1.1347.
The Canadian dollar gained 0.6% to 1.2933 per dollar, a nine-month high.
Rates:
The yield on 10-year Treasuries rose five basis points to 2.35 percent on Monday, after surging 16 basis points last week. The market was closed on Tuesday.
U.K. 10-year yields fell two basis points to 1.25 percent
Equities:
ASX 200 was up 1.8%, the most since Nov 10, and bank stocks surged 2.2%.
The Stoxx Europe 600 Index declined 0.4 percent.
Futures on the S&P 500 Index were after the underlying index posted a similar gain on Monday. The U.S. market closed early for the July 4 holiday.
Commodities:
West Texas Intermediate crude was little changed at $47.08 a barrel before U.S data forecast to show a further pullback in crude stockpiles.
Gold rose 0.3 percent to $1,223.69 an ounce, after dropping 1.7 percent on Monday for its biggest loss of the year amid the dollar’s advance.
Regards All.
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