In Asian Equity Markets stocks were sluggish on Monday as disappointing Chinese economic data fed doubts Wall Street’s rally could be sustained, while the dollar continued its retreat on the yen as speculators were forced out of suddenly unprofitable short positions. The caution was evident as MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 percent. Japan’s Nikkei eked out a gain of 0.4 percent and South Korea 0.3 percent. The CSI300 index rose 0.6 percent to 4,193.50 at the end of the morning session, while the Shanghai Composite Index gained 0.2 percent to 3,258.46.
In Currency Markets the dollar sank to a fresh six-week low to the yen on Monday as markets continued to wager that the Federal Reserve has less tightening to do with the U.S. economy at risk of recession. The dollar fell as low as 132.07 yen for the first time since June 16, and was last 0.45 percent lower at 132.605. The euro was little changed at $1.02235, continuing its consolidation near the middle of its range over the past week and a half. Sterling was flat at $1.2183. The Aussie dollar fell 0.1 percent to $0.6984 on Monday, retreating after touching a six-week high of $0.7032 in the previous session.
In US Equity Markets stocks rose on Friday after upbeat forecasts from Apple and Amazon.com, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. The Dow rose 0.97 percent, to 32,845.13; the S&P 500 gained 1.42 percent, to 4,130.29 and the Nasdaq Composite added 1.88 percent, to 12,390.69. Apple Inc shares gained 3.3 percent after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon.com Inc shot up 10.4 percent after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.
In Commodities Markets oil prices settled up more than $2 a barrel on Friday as attention turned to next week’s OPEC+ meeting and dimming expectations that the producer group will imminently boost supply. Brent crude futures contract for September rose more than $3 a barrel during the session and then pared gains to settle at $110.01 a barrel, up 2.7 percent. U.S. WTI crude futures settled at $98.62 a barrel, rising 2.3 percent. Spot gold rose 0.3 percent to $1,761.05 per ounce. Spot silver rose 0.2 percent to $20.02 per ounce, while platinum rose 0.8 percent to $895.57. Palladium was flat at $2,078.95.
In European Equity Markets stocks rose on Friday and logged their first monthly gain in four as a host of strong earnings from corporate Europe overshadowed fears of a global recession, with some strong economic data also lending support. The pan-European STOXX 600 was up 1.3 percent to a near two-month high, and logged its best monthly performance since November 2020. Luxury stocks got a boost from strong quarterly sales growth at Hermes and L’Oreal. Shares of the Birkin bag maker gained 7.5 percent, while those of the cosmetics group added 3.8 percent.
In Bond Markets Treasury yields at the long end drifted lower on Friday after data on labor costs and wage growth suggested inflation remains sticky and raised fears of a recession as the Federal Reserve seeks to cool the economy without sparking a sharp slowdown. The yield on benchmark 10-year Treasury notes slid 5.7 basis points to 2.624 percent, a decrease from a high of 2.845 percent at the beginning of the week. The yield on the 30-year notes fell 7.8 basis points to 2.961 percent. The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.768 percent.