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Markets Update: Nikkei decreased by 2.6%, the dollar recovered some losses against the yen. The latest Caixin PMI data indicates a rebound in China's manufacturing sector. Investors are looking forward to the US payrolls report before the election and the upcoming Fed meeting.
Global Markets Roundup: 1 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Asian markets cautiously began the new month, with most shares trading lower and Treasury yields hovering near three-month highs on Friday. Investors are eagerly awaiting U.S. jobs data, although an upcoming rate cut is widely anticipated. The focus is on Friday's nonfarm payrolls report, leading up to Tuesday's U.S. presidential election and the Federal Reserve's policy meeting the following day. Despite a decline in overnight trading, Nasdaq futures (NQ1!) rebounded by 0.5% following a 5.3% surge in Amazon's stock (AMZN) after hours, boosting its market cap by $104 billion. Intel (INTC) also pleasantly surprised investors with positive revenue forecasts, causing its shares to climb by 7% post-market.
This positive momentum helped EUROSTOXX 50 futures (FESX1!) and FTSE futures (Z1!) edge up by 0.1%. In Asia, Tokyo's Nikkei (NI225) dropped by 2.6% due to a stronger yen affecting the prospects of Japanese exporters. At the same time, the Asia-Pacific shares index, excluding Japan (.MIAPJ0000PUS), rose by 0.2% thanks to the growth in Chinese stocks, despite still being 1.3% lower for the week. Chinese blue chips (3399300) saw a 0.5% increase, while Hong Kong's Hang Seng index (HSI) surged by 0.9% after a private sector report showed a rebound in factory activity in October.
Meta Platforms, the parent company of Facebook, experienced a 4% decrease in its stock value on Wall Street, while Microsoft saw a 6% decline, attributed to investor worries about rising costs in artificial intelligence that could impact profits. Investors are proceeding cautiously as they await U.S. payrolls data, with economists predicting an addition of 113,000 jobs to the U.S. economy in October. Positive signs such as strong job gains in the private sector and lower-than-expected jobless claims indicate potential upside risks, although the impact of hurricanes and strikes has complicated job data interpretation. Goldman Sachs forecasts 95,000 new jobs, while TD Securities predicts a more conservative increase of 70,000. The market has already factored in a 94% chance of a quarter-point rate cut by the Federal Reserve unless there is a significant surprise, driven by robust U.S. consumption and decreasing inflation pressures.
In the foreign exchange markets, the DXY dollar index, which assesses the US dollar against six key currencies, recently increased by 0.09% to reach 103.97. Against the yen, the dollar (USDJPY) had gained 0.3% to reach 152.46. The dollar's rise helped to counterbalance its almost 1% drop from the day before, following Bank of Japan Governor Kazuo Ueda's slightly less dovish comments suggesting a possible year-end rate increase, which boosted the yen. The British pound GBPUSDÂ remained close to its lowest level in 2-1/2 months at $1.2891, while British bond yields surged amid investor expectations that the UK government's latest budget would lead to increased inflation and a more gradual reduction in interest rates by the Bank of England. The offshore yuan was down by approximately 0.12% against the dollar at a rate of 7.1295 per dollar (USDCNH), whereas the onshore yuan (USDCNY) decreased by 0.06% to 7.1219. The U.S. dollar began the month close to a one-week low following pressure from the yen. USDJPYÂ and EURUSDÂ on Thursday. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Gold prices rose by 0.5% to $2,756.89 after a 1.5% decrease the previous day. Brent prices increased nearly 2% to $74.15 per barrel as oil continued its upward trend for the third consecutive day. U.S. West Texas Intermediate crude oil CL1!, increased by $1.77, equivalent to a 2.56% rise, reaching $71.08. Reports suggested that Iran was planning a retaliatory attack on Israel from Iraqi soil soon. In agricultural commodities, London, cocoa prices for March delivery C2!​ decreased by 0.4% to 5,359 pounds per metric ton, having earlier reached a two-week high of 5,448 pounds. Meanwhile, New York cocoa futures for December delivery CC1!​ dropped by 0.8% to $7,334 per ton. March raw sugar contracts SB1!​ closed 0.52 cent higher, up by 2.3% at 22.74 cents per lb, following a peak of 22.82 cents over the past two weeks. White sugar futures for December delivery SF1!​ climbed by 1.2% to $576.50 per ton. Robusta coffee contracts for January delivery RC2!​ settled $84 lower, down by 1.9% at $4,369 per ton, reversing the gains from the previous session. Arabica coffee futures for December delivery KC1!​ declined by 1.5% to $2.459 per lb. The soybean contract with the highest trading activity on the Chicago Board of Trade ZS1! increased by 0.8% to $10.02-3/4 per bushel. Meanwhile, wheat ZW1! rose by 0.5% to $5.73-1/2 per bushel, and corn ZC1! saw a 0.2% gain to $4.11-1/2 per bushel. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1! | LEI
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team