India Morning Call-Global Markets

Thu Jun 5, 2014 10:52pm EDT

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EQUITIES

NEW YORK - The Dow and the S&P 500 both ended at new highs on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation.

Investors are now focused on Friday's U.S. payrolls report for May. It is expected to show job growth slowed last month and the unemployment rate ticked up, but not by enough to upset the view that the economy is bouncing back.

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LONDON - Britain's top equity index fell on Thursday, missing out on a broader rally among Europe's stock markets which were boosted by new ECB economic stimulus measures.

Traders said the UK's benchmark FTSE 100 index was hindered by the fact that the ECB's measures had led to the sterling currency rising against the euro, since a strong pound can impact the ability of British companies to export overseas.

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TOKYO - Japanese stocks ended at a near three-month high on Thursday as the weak-yen trend supported the mood, but gains were limited as investors took a breather from recent sharp gains ahead of key events such as a U.S. jobs report on Friday.

The Nikkei ended 0.1 percent higher at 15,079.37, the highest closing level since March 11.

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HONG KONG - Hong Kong market expected to open up 0.5 percent.

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FOREIGN EXCHANGE

SYDNEY - The euro consolidated gains early on Friday, having staged a dramatic rebound from a four-month trough as investors booked profits after the European Central Bank eased policy in a long-anticipated move.

The common currency last traded at $1.3662, after rallying 0.5 percent on Thursday. Momentum could see it test resistance at $1.3688/90 ahead of the closely watched U.S. non-farm payrolls due later in the day.

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TREASURIES

NEW YORK - U.S. Treasuries prices gained on Thursday after the ECB cut interest rates to record lows and announced new measures meant to help stimulate the region's economy.

The ECB said it was setting a negative deposit rate, effectively charging banks to deposit overnight. The move, without precedent in ECB history, came in response to a slowdown in inflation, to far below the central bank's target, amid weak euro zone lending.

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COMMODITIES

GOLD

SINGAPORE - Gold held on to sharp overnight gains on Friday and was headed for a weekly rise after two straight declines, after the ECB launched a series of measures to pump money into the sluggish euro zone economy.

Investors refrained from taking big positions in early trading as they were eyeing the U.S. nonfarm payrolls report later in the day for a gauge on the world's biggest economy.

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BASE METALS

SYDNEY - London copper was steady on Friday, set for its second weekly fall as optimism over economic growth in top user China was overshadowed by a probe into metals financing at a major port in the country.

Three-month copper on the London Metal Exchange had edged down 0.1 percent to $6775.25 a tonne by 0134 GMT, after closing little changed the previous session when prices hit their lowest since May 12 at $6,754 a tonne.

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OIL

NEW YORK - Brent crude oil futures rose and U.S. crude oil pared losses on Thursday in choppy trading as the euro and dollar reacted to the ECB interest rate cut and investors anticipated growing oil demand in Europe.

The dollar initially strengthened against the euro after the ECB cut interest rates to record lows and announced negative interest rates on overnight deposits.

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