In Asian Equity Markets stocks held onto gains on Friday and were set to snap a four week streak of weekly losses as Chinese markets came back a bit more positive after a long holiday, encouraged by a survey showing services sector activity improving. Japan’s Nikkei index advanced 1.8 percent, and MSCI’s broadest index of Asia-Pacific shares outside Japan traded either side of flat, last up 0.03 percent. The Asian benchmark was supported by advances in Chinese blue chips which rose 1.07 percent as trading resumed after the week-long National Day holiday.
In Currency Markets the safe-haven dollar hovered below a one-year high to major peers on Friday amid improved risk sentiment, while traders awaited clues on the pace of Federal Reserve policy normalization from a closely watched monthly payrolls reports. The U.S. Dollar Currency Index was little changed at 94.202. The dollar edged up 0.06 percent to 111.69 yen, while the euro consolidated around $1.1555. Australia’s currency was almost flat at $0.73105 from Thursday, when it rallied as high as $0.7324 for the first time since Sept. 16.
In US Equity Markets main indexes rose on Thursday in a broad-based rally led by heavyweight technology shares, after a truce in the debt-ceiling standoff in the U.S. Congress relieved concerns of a possible government debt default this month. The Dow rose 1.45 percent, to 34,916.25, the S&P 500 gained 1.38 percent, to 4,423.65 and the Nasdaq Composite added 1.66 percent, to 14,742.96. All 11 S&P 500 sectors were higher. Materials led the way, climbing 2.1 percent, while consumer discretionary and healthcare also were among the top performers.
In Commodities Markets oil prices shook off initial losses to turn positive on Thursday on indications the United States may not release emergency crude reserves or ban exports, putting focus back on tight supply. Brent crude rose 1.1 percent to settle at $81.95 a barrel. U.S. crude settled up 1.1 percent at $78.30 a barrel. Spot gold was down 0.3 percent at $1,757.30 per ounce. Spot silver steadied at $22.59 per ounce, platinum fell 0.2 percent to $982.37, and palladium jumped 3.7 percent, on course for its best day since Sept. 22, to $1,958.61.
In European Equity Markets stocks marked their best showing since July on Thursday, as easing oil and gas prices offered relief to investors worried about runaway inflation, while positive earnings updates added to the upbeat sentiment. The pan-European STOXX 600 index rose 1.6 percent to reverse weekly losses, with buying seen across all sectors. The energy sector gained the least, up 0.2 percent. The automakers-heavy German DAX index logged its best session since May, up 1.9 percent, shrugging off data that showed the country’s industrial output in August fell the most since April last year.
In Bond Markets U.S. Treasury yields rose on Thursday as market positioning ahead of the September employment report and a risk-on sentiment sparked by a stopgap debt ceiling plan in Congress pushed debt prices lower. The benchmark 10-year yield was last up 4.7 basis points at 1.5712 percent. The five-year note yield, which is more sensitive to intermediate interest rate hikes, was last up 3.5 basis points at 1.0202 percent. The breakeven rate on five-year Treasury Inflation-Protected Securities (TIPS) hit 2.634 percent, the highest since July. For 10-year TIPS, it rose to its highest since June at 2.472 percent.