News & Research

20 February 2017

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Currency Markets a slide in U.S. bond yields pressured the dollar against the yen on Monday, while the euro struggled for traction after suffering significant losses at the end of last week on renewed concerns about the upcoming French elections. The dollar was little changed at 113.090 yen, not far from 112.620, its lowest since Feb. 9 touched on Friday. The euro crawled up 0.1 percent to 1.0613 after falling 0.6 percent on Friday. The pound was flat at $1.2414 after falling 0.7 percent on Friday, after a surprise third monthly fall in British retail sales pointed to weakening consumer sentiment. The Australian dollar fell 0.1 percent to $0.7670 and the New Zealand dollar was down 0.1 percent at $0.7177.

Commodities Markets oil prices held steady on Monday as investors gauged whether an increase in U.S. drilling rigs and record stockpiles would undermine efforts by producers to cut output and bring the market into balance. Brent futures were down 5 cents at $55.75 a barrel, while U.S. West Texas Intermediate crude was unchanged at $53.40. Spot gold had edged down 0.1 percent to $1,234.28 per ounce, while U.S. gold futures fell 0.3 percent to $1,235.2. In other metals, silver fell 0.1 percent to $17.95 per ounce, while platinum shed 0.5 percent to $995.55. Palladium declined 0.2 percent to $774.05 per ounce, down from $795.1, the highest since Jan. 24., in the previous session.

US Equity Markets  the Dow Jones Industrial Average barely reached a seventh straight record high on Friday and the S&P 500 and Nasdaq also closed at a record as gains in Kraft Heinz helped offset selling in energy stocks. The Dow Jones Industrial Average rose 0.02 percent to end at 20,624.05, while the S&P 500 gained 0.17 percent to 2,351.16. The Nasdaq Composite added 0.41 percent to 5,838.58. Kraft Heinz  jumped 10.74 percent after it said it would continue to pursue a $143 billion bid for Unilever despite being rebuffed. Unilever's U.S.-listed shares rose 14 percent. UnitedHealth sank 3.68 percent after it was sued by the U.S. Justice Department over Medicare charges. 

Bond Markets U.S. Treasury prices gained on Friday as concerns over the French presidential election and weak data in Britain added to risk aversion, hurting stocks and boosting demand for safe haven U.S. debt. Benchmark 10-year notes were last up 8/32 in price to yield 2.42 percent, down from 2.45 percent late on Thursday. The yields earlier fell to 2.40 percent, the lowest since Feb. 10. British 10-year government bond yields fell to a three-month low on Friday after data showed shoppers unexpectedly spent less in January, while German government bonds were also boosted by nervousness over the French election.

Asian Equity Markets Japanese stocks fell for a third consecutive session on Monday as the yen's gains and uncertainty about U.S. economic policies prompted profit-taking. The Nikkei last stood down 0.2 percent at 19,190, having declined 1.7 percent from a six-week high of 19,519 hit a week ago. The broader Topix was down 0.2 percent at 1,541.30, with 28 of the Tokyo Stock Exchange's 33 industry subindexes in the red in late morning trade. MSCI's broadest index of Asia-Pacific stocks outside Japan edged up 0.1 percent and back toward a 19-month peak set last week. Shanghai stocks added 0.6 percent and expectations of solid economic growth in China kept commodities such as copper and iron ore well bid.