Publications
Partners
Sydney - Oil clawed back some of its biggest loss in four weeks after data showed US stockpiles declining, while European bonds slipped before the release of minutes from the ECB. Gold fell and major currencies were largely steady.
American government data Thursday is also forecast to show crude supplies fell, helping West Texas oil climb back toward $46 per barrel. Oil and gas shares in Europe rose, but the Stoxx Europe 600 Index edged lower amid a slump of travel and leisure stocks. Gold’s retreat followed two days of gains.
Focus on Thursday will likely be on minutes from the latest European Central Bank meeting, and on private jobs data in the U.S. Minutes from the Fed showed a lack of consensus about when to shrink the central bank’s $4.5 trillion balance sheet, and how to approach policy strategy in a time of low inflation.
“With the mixed tone from the minutes and the essential delay to the announcement of balance-sheet reduction timing, there is no surprise why we are seeing the muted reaction,” said Jingyi Pan, a market strategist at IG Asia. “Nevertheless, as things stand, the Fed’s rhetoric still points toward confidence in economic conditions.”
Here’s what’s coming up:
The ECB minutes may provide clues on whether the bank is closer to tightening policy. The ADP employment report today is unlikely to sustain the recent pace of growth, with consensus expecting 185 000 new private jobs in June, down from 253 000 in May.
The G-20 summit in Hamburg starts on Friday. US President Donald Trump is expected to hold his first meeting with Russia’s Vladimir Putin as well as meet his Chinese counterpart Xi Jinping. And Friday will also see the US Labour Department report official jobs figures.
American employers probably added around 175 000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project.
These are the main moves in markets:
Asia
Japan’s Topix dropped 0.2% as the yen swung before turning lower. This would be the third straight session in which the currency has climbed to an intraday peak, and then given up those gains. The South Korean won slumped 0.6% to the lowest level since March. India’s Sensex advanced 0.5%, poised for a record close.
Stocks
The Stoxx Europe 600 Index fell 0.1% as of 10:44. Futures on the S&P 500 Index declined 0.1% after the underlying gauge rose 0.2% on Wednesday and the Nasdaq 100 index jumped 0.9%.
Currencies
The Bloomberg Dollar Spot Index weakened 0.1%. The euro was flat at $1.1349 and the British pound was little changed at $1.2938.
Bonds
The yield on 10-year Treasuries rose two basis points to 2.34%, after falling three basis points on Wednesday. UK, French and German 10-year yields all climbed two basis points.
Commodities
West Texas Intermediate crude futures rose 1.6% to $45.84 a barrel. The contract dropped 4.1% on Wednesday, the most in four weeks, as Russia was said to oppose any proposal to deepen OPEC-led production cuts. Gold lost 0.2% to $1 224.28 an ounce, after two days of gains.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
