Monday Morning Briefing: Asia Opens Mixed, Dollar Extends Gains, Oil Prices Above $50
Here’s your Monday morning briefing
Asian stock markets traded mixed on Monday as investors await major corporate earnings across the U.S., Japan and China this week. Dollar continued to extend its gains while the euro fell to a seven-month low.
Japanese exports fell 6.9 percent for the month of September, indicating a contraction for the twelfth straight month, while imports too fell 16.3 percent, a press release from the country’s finance ministry said.
Investors Eye Key Earnings, Macro Data
U.S. shares ended with weekly gains on Friday backed by a strong dollar and mixed earnings from companies. This week investors will eye earnings from companies like Apple and Samsung.
Investors will also be tracking macro data from U.S., China and Japan. Initial gauges of manufacturing activity in the U.S. and Europe are slated for a release today, which may impact monetary policy outlook going ahead.
The S&P 500 ended flat on Friday but managed to end the week with gains. The NASDAQ composite outperformed after gaining 0.3 percent, led by Microsoft which hit a new all-time high.
Dollar Extends Gains, Euro Falls To Seven-Month Low
The Bloomberg Dollar Spot Index continued to extend its gains amidst speculations that the U.S. Federal Reserve will increase lending rates this year. Odds for the event to take place in December were at 67 percent, according to futures rates tracked by Bloomberg.
The pound fell 0.2 percent versus the greenback while the euro remained near its seven-month lows, falling a further 0.1 percent.
Oil Holds Near $50 Per Barrel Mark
Crude oil prices remained steady near the $50 per barrel mark as investors remained cautious as members of the OPEC (Organization of the Petroleum Exporting Countries) begin to flesh out details of the deal to trim output by 32.5 to 33 million barrels per day. The agreement is slated to be finalized at the meeting in Vienna on November 30.
West Texas Intermediate Crude for December delivery was trading lower by 0.3 percent at $50.67 per barrel after the Iraqi oil minister said that the nation should be exempted from production cuts as it is engaged in a war with islamic militants. Iraq produced more than 4.7 million barrels per day in September.
Tepid Start?
The SGX Nifty index was trading little changed at 8,715, indicating a tepid start to Indian equities. Stocks of Wipro Ltd. and Cairn India Ltd. will be in focus as they react to their second quarter earnings.