Business Headlines

Dollar Marks Time, Asia Stocks Mixed, Bonds Rise: Markets Wrap

published Oct 3, 2017, 7:17:54 PM, by Adam Haigh

(Bloomberg) —The rally in the dollar petered out as investors awaited fresh triggers for trades from upcoming Federal Reserve speeches and U.S. economic data. Asian stocks were mixed at the open after American benchmarks closed at record highs.

The Bloomberg dollar index hovered around its highest since April, consolidating gains made the past three weeks on speculation of further Fed monetary tightening, the potential for a more-aggressive U.S. central bank chief and the chance of American tax cuts. A number of Fed speakers are on the schedule later this week, and Friday brings the monthly employment report, though that might be a cloudier gauge than usual due to the impact of hurricanes.

Bonds crept higher, pulling down yields on benchmark Treasuries and Australian government debt. Crude traded around $50 a barrel as the market awaits reports on U.S. inventories. Markets in South Korea, China and Taiwan are closed for a holiday.

Among the key events coming this week:

India’s central bank on Wednesday will probably hold its benchmark rate at a seven-year low and maintain its neutral stance, given inflation is picking up. Still, the central bank is expected to paint a subdued picture of India’s economy and could downgrade its forecasts for growth. Government and industry are pushing for easing. ADP employment data for September is due Wednesday, with the median estimate in a Bloomberg survey calling for a 135,000 increase in private payrolls, compared with 237,000 in August. Also this week are data on trade, durable goods and Friday’s September nonfarm payrolls report. China is due to report monthly foreign-exchange reserves Thursday. Minutes of the last ECB meeting are the European economic highlight this week.Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index were little changed as of 9:13 a.m. in Tokyo. The underlying gauge rose 0.2 percent Tuesday, extending this year’s gain to 13 percent. Carmakers jumped after data indicated the U.S. auto market probably expanded for the first time this year. The MSCI Emerging Market Index jumped 1.3 percent on Tuesday. Japan’s Topix index was little changed at 1,684.11. Australia’s S&P/ASX 200 Index fell 0.6 percent. Futures on Hong Kong’s Hang Seng index added 0.3 percent.

Currencies

The Bloomberg Dollar Spot Index was little changed after touching the highest in almost 11 weeks. The yen was little changed at 112.73 per dollar. The euro was at $1.1757. With Spanish Prime Minister Mariano Rajoy fighting to maintain control after 2.3 million Catalans voted in Sunday’s makeshift referendum, Catalan President Carles Puigdemont said he will declare independence within days. The pound was flat at $1.3253 after falling from its mid-September high.

Bonds

The yield on 10-year Treasuries was little changed after falling two basis points to 2.32 percent on Tuesday.A JPMorgan Chase & Co. survey found clients are the most short in the world’s largest bond market in more than a decade. Yields on Australian 10-year bonds slid 2 basis points to 2.82 percent.

Commodities

Gold was steady at $1,273.63 an ounce. West Texas Intermediate crude dropped 0.4 percent to $50.07 a barrel.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net To contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.net

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Walt Alexander

Walt Alexander

Walt Alexander is the editor-in-chief of Men of Value. Learn more about his vision for the online magazine for American men with the American values—faith, family & freedom—in his Welcome from the Editor.

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