Market Review: Gold Rises For Third Day; Pound And Euro Rose 

  • Crude set for fifth week of losses; gold rises for third day

  • China shares in Hong Kong gain while Japan equities fluctuate

Asian equities are ending the week on a tepid note, with oil remaining below $43 a barrel, after a series of Federal Reserve speakers did little to alter projections for the path of U.S. interest-rate increases.

Chinese companies trading in Hong Kong advanced while stocks in Japan fluctuated within a narrow range. Chinese equities remain in the limelight as the nation’s banking watchdog raises scrutiny on some of the biggest dealmakers. Crude halted a losing streak after tumbling into a bear market, but concerns of a supply glut persisted, helping gold to continue climbing back from a one-month low.

Global equities, helped by a rebound in tech shares, have been resilient this week in the face of investor concerns about a policy misstep from the Fed and a rout in the oil market that extended for a fifth week. With concern that inflation is lagging expectations and the U.S. economy isn’t quite as rosy as Fed Chair Janet Yellen has pictured, the market is gauging the odds for one more interest-rate hike this year.

“The market is taking a pause at a relatively high level,” said Hao Hong, chief strategist at Bocom International Holdings Co. in Hong Kong. “Investors need to watch for signs of economic slowdown and see whether the Fed will adamantly carry on rate hikes.”

China stocks are closing out a rocky week. They got a boost from MSCI Inc.’s decision to include domestic shares in its indexes, but regulatory surprises created upheaval. Shares slumped on news that the government had stepped up scrutiny of the nation’s most active overseas acquirers. Then, China’s broadcasting regulator ordered Weibo Corp. and two other internet media firms to halt video and audio webcasting, accusing them of operating without a license and disseminating opinions potentially harmful to social stability. Weibo shares sank 6.1 percent in New York.
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Here are some upcoming events investors are watching:

  • James Bullard, Loretta Mester and Jerome Powell cap a busy week for speeches from Fed policy makers. Bullard told the Wall Street Journal the rate trajectory the FOMC has laid out seems “unnecessarily aggressive” and the balance-sheet unwind should start sooner rather than later.
  • Friday’s session in the U.S. will probably be one of the busiest of the year for equity traders as the annual Russell reshuffle is set to take effect. The FTSE Russell’s rebalancing of stock indexes reliably boosts trading, though it rarely triggers big price swings in the market.
  • U.K. Prime Minister Theresa May will make a statement to the British parliament on Monday when details of her proposal to safeguard the residency rights of European citizen who currently live in the U.K. will be published by the government.

Here are the main moves in markets:


  • Japan’s Topix rose less than 0.1 percent as of 1:22 p.m. in Tokyo. Australia’s S&P/ASX 200 Index was flat and South Korea’s Kospi index added 0.1 percent.
  • The Hang Seng China Enterprises Index of mainland firms trading in Hong Kong added 0.3 percent. The Hang Seng Index rose less than 0.1 percent, while the Shanghai Composite Index slipped 0.7 percent.
  • Futures on the S&P 500 Index rose 0.1 percent. The underlying gauge fell less than 0.1 percent on Thursday. Health-care shares in the index jumped 1.1 percent.


  • West Texas Intermediate crude added 0.4 percent to $42.89 a barrel. Oil rose 0.5 percent on Thursday, stabilizing after falling into a bear market earlier in the week. Investors remain focused on brimming supplies that work against OPEC-led efforts to reduce a glut.
  • Gold rose 0.1 percent to $1,251.95 an ounce, for a third day of gains.


  • The Bloomberg Dollar Spot Index was little changed. The yen was flat at 111.33 per dollar.
  • The pound rose 0.2 percent to $1.2704 on the one-year anniversary of the historic Brexit vote. The euro rose 0.1 percent to $1.1163.


  • The yield on 10-year Treasuries rose less than one basis point to 2.16 percent.
  • Australian 10-year yields were little changed at 2.38 percent.

Source: Bloomberg – Asian Stocks Mixed While Oil Halts Losing Streak: Markets Wrap

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