Focus on U.S. non-farm payroll data: What will the Fed do? • The Nikkei Index traded lower on Friday to take its losses to over 20% from a 5½ year high reached last month, and thereby entered bear market territory, with investors concerned over slowing growth in China, as well as persistent worries whether the U.S. Fed would ease back on its stimulus measures. • Mainland Chinese markets ended weaker on Friday, while the Hang Seng Index in Hong Kong also slipped lower with investors bracing themselves for the U.S. jobs data due later in the day that could pre-empt the U.S. Fed’s plans to taper off on its stimulus measures. • European markets are expected to open higher on Friday, on the back of the late rebound on U.S. markets overnight with investors likely to bargain hunt beaten-down shares, although trading is expected to be volatile ahead of U.S. jobs data due later today. • According to the CNN Money website, U.S. markets closed firmer on Thursday with the Dow bouncing back from a 100 point loss to end 80 points or 0.5% higher, with shares coming under pressure on a weaker U.S. Dollar, which was driven by speculation that the U.S. job market data due today would disappoint. • The Business Day reports that the JSE ended in negative territory on Thursday, with retail and banking shares leading the losers on the back of a possible interest rate hike due to the weaker Rand, while platinum and gold mining shares were positive on slightly firmer commodity prices. • The Rand was last trading stronger at R9.9044 against the Dollar, with the Pound at R15.4239, while the Euro was also quoted firmer at R13.1048. • Gold prices traded steady in Singapore on Friday, ahead of U.S. nonfarm payrolls due later today, where a weak reading would cause the Fed to continue with its stimulus measures, which is supportive of the precious metal as a hedge against inflation. Gold was last trading at $1 412.90, with the platinum price quoted at $1 529.25, while the palladium price was trading at $756.50. • The Brent crude oil price was last trading slightly higher at $103.80 a barrel.
Posted on: Fri, 07 Jun 2013 07:55:31 +0000
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