News & Research

24 February 2017

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Currency Markets the dollar clawed back some ground on Friday after skidding to a two-week low against the yen, but was still on track for weekly losses after the Federal Reserve meeting minutes disappointed dollar bulls. The greenback inched 0.1 percent higher to 112.76 yen but was just off a two-week low of 112.55 plumbed overnight and down 0.2 percent for the week. The euro was on track to shed 0.2 percent for the week against its U.S. counterpart, but was steady on the day at $1.0582. The pound stood at $1.2550. The dollar index, which tracks the U.S. unit against a basket of six major peers, edged down 0.1 percent to 100.970, nearly flat for the week.

Commodities Markets oil prices held gains on Friday on data showing U.S. stockpiles rose for a seventh straight week but at a pace that was well below expectations, and news of oil being sold out of storage in Southeast Asia. U.S. West Texas Intermediate was unchanged at $54.45 a barrel, pulling back from early losses. WTI was on track for a weekly gain of about 2 percent, which would be its biggest so far this year. Brent crude was up 3 cents at $56.61 and was on track for a weekly gain of about 1.4 percent. Spot gold was mostly unchanged at $1,249.37 per ounce and silver rose 0.2 percent to $18.20 per ounce. Platinum edged up 0.1 percent to $1,007 per ounce, while palladium rose 0.2 percent to $774.25.

US Equity Markets  stocks edged higher on Thursday, buoyed by energy stocks and a renewed pledge by President Donald Trump to chief executives of major U.S. companies to bring back millions of jobs to the United States. The Dow Jones Industrial Average rose 0.17 percent, to 20,810.32, the S&P 500 gained 0.04 percent, to 2,363.81 and the Nasdaq Composite fell 0.43 percent, to 5,835.51. Boston Scientific lost 2.7 percent after the company recalled its Lotus Valve heart devices, citing reports of problems with the locking mechanism. Shares of rival Edwards Lifesciences rose 3.8 percent.  L Brands plunged 15.8 percent after the company reported weak sales at Victoria's Secret, its biggest business by revenue.

Bond Markets Japanese government bond prices gained on Friday, helped by a regular Bank of Japan buying operation, with the yield curve at its flattest in three weeks as the market tracked a recent decline in global debt yields. The benchmark 10-year JGB yield fell a basis point to 0.065 percent, its lowest in a month. Super long JGBs, already on a bullish footing after Thursday's 20-year auction attracted strong investor demand, outperformed as the BOJ conducted a regular JGB buying operation in the zone.  The 30-year yield fell 4 basis points to 0.810 percent. 

Asian Equity Markets Japanese stocks managed to steady from early falls on Friday as the yen weakened slightly during Asian trade, but political uncertainty abroad and U.S. tax policy kept most investors on the sidelines. The Nikkei edged down 0.1 percent to 19,347.97 in midmorning trade, crawling back from an intraday low of 19,219.58 hit at the open. MSCI's broadest index of Asia-Pacific stocks outside Japan was down 0.5 percent, giving back part of this week's gains, though it is likely to log its fifth straight week of gains. Hong Kong's Hang Seng lost 0.5 percent while China's mainland stocks fell 0.4 per