In Asian Equity Markets stocks advanced on Friday as a shock from a surprisingly strong U.S. inflation reading ebbed, with investors hopeful that the worst price hikes could be soon over. Japan’s Nikkei gained 1.1 percent, helped by brisk earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25 percent but mainland Chinese shares were softer, with CSI 300 index falling 0.3 percent. The broader Topix advanced 1.31 percent to 2,040.60. Both indexes closed flat for the week. Start-up investor SoftBank Group rose 2.58 percent and jumped 10 percent for the week.
In Currency Markets the U.S. dollar headed for its best week in almost five months against major peers on Friday, amid bets for earlier Federal Reserve interest rate hikes after data this week showed the fastest U.S. inflation in three decades. The dollar index hit a fresh 16-month high of 95.266, on track for a 1.05 percent gain this week. The euro fell back to a 16-month low at $1.1436, and sterling fell to $1.3354, its weakest level this year. The dollar rose as high as 114.30 yen on Friday, the strongest since Nov. 1. It touched a three-week high of 0.92295 Swiss franc.
In US Equity Markets the S&P 500 ended only nominally higher on Thursday, with chipmakers helping push the Nasdaq into green territory in a muted Veterans Day session, the day after hotter-than-expected inflation reports dampened investor sentiment and halted a streak of record closing highs. The Dow fell 0.44 percent, to 35,921.23, the S&P 500 gained 0.06 percent, to 4,649.27 and the Nasdaq Composite added 0.52 percent, to 15,704.28. Electric automaker Rivian Automotive Inc’s shares rose 22.1 percent a day after closing 29.1 percent above its offer price in its debut as a publicly traded company.
In Commodities Markets oil rose above $83 a barrel on Thursday before easing a bit as the market grappled with a stronger dollar and concerns about faster U.S. inflation after the OPEC cut its 2021 oil demand forecast due to high prices. Brent crude settled up 23 cents at $82.87 a barrel. U.S. crude rose 25 cents to settle at $81.59 a barrel. Spot gold was up 0.6 percent at $1,861.39 per ounce. Elsewhere, spot silver jumped 2.4 percent to $25.21 per ounce, its highest since Aug. 6. Platinum gained 1.9 percent to $1,087.35 per ounce and palladium rose 2 percent to $2,060.21.
In European Equity Markets stocks ended at a record high on Thursday after relief around property developer China Evergrande benefited China-focussed mining stocks, while a strong earnings season buoyed broader sentiment. The pan-European STOXX 600 closed 0.3 percent higher at a new peak of 485.29 points, with the mining sector rallying 3.7 percent in its best day in four months. Luxembourg-based ArcelorMittal gained 4.1 percent after reporting its strongest quarter in more than a decade. BHP Group rose 3.9 percent after it said it had won approval for its climate roadmap.
In Bond Markets European bonds were again positioning for an early European Central Bank rate hike next year, a day after data showing the biggest annual rise in U.S. consumer prices in 31 years boosted U.S. rate hike bets. Bund yields are rising again alongside a rise in market inflation expectations. Ten-year Bund yields were last trading at around -0.24 percent. They are up 34 bps this year and headed for their biggest annual rise since 2013. Italy’s 10-year bond yield was up 3 bps at 0.96 percent, having jumped almost 10 bps on Wednesday.