In Asian Equity Markets shares rose on Monday, taking cues from Wall Street’s advance following the release of strong employment data for the month of June. Japan’s Nikkei 225 rose 1.27 percent, buoyed by the move higher in the electric appliances, construction and mining sectors, while the pharmaceuticals led gains. Greater China markets got a boost for the start of the week. Hong Kong’s Hang Seng Index advanced 1.74 percent, with similar gains seen on the mainland. The Shanghai composite rose 1.66 percent and the smaller Shenzhen composite jumped 1.57 percent.
In Currency Markets the US dollar struggled near 3-1/2-week lows against its peers on Monday after U.S. jobs data showed slower-than-expected wage growth, while the pound retreated as a key member of Britain’s cabinet resigned over Prime Minister Theresa May’s Brexit plan. The dollar index against a basket of six major currencies was 0.15 percent lower at 93.877. It had lost nearly 0.5 percent on Friday and stooped to 93.921, its lowest since June 14, after closely-watched U.S. wages indicators disappointed the market.
In Commodities Markets oil prices rose on Monday as investors focused on tight market conditions after data late last week showed U.S. crude inventories fell to their lowest in more than three years. Global benchmark Brent rose 37 cents, or 0.5 percent, to $77.48 a barrel. U.S. crude futures added 29 cents, or 0.4 percent, to $74.09. Official data that came out on Thursday, a day later than normal due to the July 4 public holiday, showed inventories at Cushing, the delivery point for U.S. crude futures, fell to their lowest in 3-1/2 years.
In US Equity Markets stocks climbed on Friday, with the S&P 500 and the Nasdaq hitting their highest levels in two weeks, as strong U.S. jobs growth blunted the impact of an escalating U.S.-China trade dispute. The S&P 500 gained 0.85 percent, to 2,759.82 and the Nasdaq Composite added 1.34 percent, to 7,688.39. All of the 11 major S&P 500 sectors posted gains. The S&P 500 healthcare index rose 1.5 percent, the greatest percentage gain among the S&P’s major sectors, while the Nasdaq biotech index jumped 3.7 percent.
In Bond Markets U.S. 10-year Treasury yields fell to their lowest levels in 5-1/2 weeks on Friday, after jobs data for June showed that wage pressures were below economists’ expectations, and the Treasury yield curve flattened to its tightest since 2007. Benchmark 10-year note yields fell to a session low of 2.807 percent, the lowest since May 30 and down from 2.832 percent before the data was released. The yield curve between 2-year and 10-year notes flattened to 26.4 basis points, the tightest since 2007.