The Dollar was flat, Euro rose, Yen fell; Early traders review
Asian shares traded mixed on Friday, while remaining on track for a weekly loss as investors mull the implications of a jump in benchmark 10-year Treasury yields to their highest level since 2011.
The dollar was flat, near its strongest for the year, in Friday trading. Futures on the U.S. S&P 500 Index were up after news that China has offered President Donald Trump a $200 billion reduction in the bilateral trade gap with the U.S. Share indexes in Japan and South Korea rose, while they retreated in Australia. Brent crude held near its highest since 2014 amid mounting signs that global stockpiles are shrinking.
Investors are dealing with recent evidence that the world’s largest economy will continue its solid expansion, as well as issues stretching from peace talks on the Korean peninsula to populists taking power in Italy. Looming over it all are trade talks between the U.S. and China, the outcome of which could cement the global growth story — or derail it. China’s $200 billion trade-deficit reduction offer came in talks in Washington this week, a Trump administration official said.
The euro is heading for another weekly loss, while Italian bonds dropped this week as an agreement was sealed by populist parties to form a coalition government. The Turkish lira deepened its losses, while emerging-market stocks slipped.
These are some key events to watch this week:
- Chinese Vice Premier Liu He is in Washington for more trade talks.
And these are the main moves in markets:
- The MSCI Asia Pacific Index rose 0.2 percent as of 2:39 p.m. in Tokyo, on course for a 0.7 percent drop on the week.
- Topix index rose 0.3 percent.
- Hong Kong’s Hang Seng Index rose 0.2 percent.
- Kospi index advanced 0.4 percent.
- Australia’s S&P/ASX 200 Index dipped 0.1 percent.
- Futures on the S&P 500 Index rose 0.2 percent.
- The Bloomberg Dollar Spot Index rose less than 0.05 percent, heading for a fifth straight week in the green.
- The Japanese yen fell 0.1 percent to 110.84 per dollar.
- The euro rose 0.1 percent to $1.1809.
- The yield on 10-year Treasuries was flat Friday at 3.11 percent.
- Australia’s 10-year yield dipped one basis point to 2.91 percent.
- West Texas Intermediate crude rose 0.2 percent to $71.60 a barrel.
- Gold fell 0.1 percent to $1,289.81 an ounce.
- LME copper fell 0.2 percent to $6,869.00 per metric ton.