In Asian Equity Markets stocks turned lower on Monday as relief over the benign U.S. jobs report was chilled by caution ahead of key inflation data later this week, while a coronavirus outbreak in Taiwan took a toll on chip manufacturers. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, while Japan’s Nikkei edged up 0.2 percent. Taiwan stocks lost 1.7 percent as a spike in COVID-19 cases hit three tech companies in northern Taiwan, including chip packager King Yuan Electronics. Chinese blue chips were off 0.3 percent ahead of data on exports and imports for May.
In Currency Markets the U.S. dollar began the week under gentle pressure, after a second consecutive month of softer-than-expected U.S. jobs data reversed its recent attempts at a rally, as focus shifted to inflation figures and a European Central Bank meeting. A euro bought $1.2165, about 0.5 percent below the three-week high of $1.2104 it had struck on Friday. The Australian and New Zealand dollars were back above 77 cents and 72 cents, respectively, and the dollar was back beneath 110 Japanese yen, last trading at 109.61 yen.
In US Equity Markets stocks climbed on Friday, led by technology shares, after a tepid U.S. monthly jobs report relieved investor concerns the Fed might rein in monetary stimulus soon. The Dow rose 0.52 percent, to 34,756.39, the S&P 500 gained 0.88 percent, to 4,229.89 and the Nasdaq Composite added 1.47 percent, to 13,814.49. The heavyweight S&P 500 tech sector was the best-performing group on Friday, rising 1.9 percent. Billionaire William Ackman’s Pershing Square Tontine Holdings fell 11.9 percent after news it was in talks to buy 10 percent of Universal Music Group.
In Commodities Markets gold rebounded from a more than two-week low on Friday after U.S. nonfarm payrolls did not rise as much as expected, although bullion was still on course to register its biggest weekly decline since March. Spot gold rose 1 percent to $1,889.27 per ounce. U.S. gold futures settled up 1 percent at $1,892. Silver gained 1 percent to $27.73 per ounce. Palladium fell 0.1 percent to $2,837.54 and platinum rose 0.5 percent to $1,162.83. Oil rose, with Brent topping $72 a barrel for the first time since 2019 on as OPEC+ supply discipline and recovering demand.
In European Equity Markets stocks ended at a record high on Friday as weak U.S. payrolls data pointed to lower chances of early policy tightening, while optimism over a euro zone economic recovery buoyed most sectors. The pan-European STOXX 600 index rose 0.4 percent to a new closing high of 452.57, having earlier hit an all-time high of 452.71. Technology stocks rose 1.2 percent and were the best performers for the day, led by Austrian chipmaker AMS. Shares of the firm rose 4.4 percent after it announced the sale of its North American digital systems business to U.S.-based Acquity Brands.
In Bond Markets U.S. Treasury yields fell and the yield curve flattened on Friday after job gains in May fell short of expectations, calming fears that a roaring economy could lead to a quicker tightening of monetary policy. The benchmark 10-year yield fell to its lowest level since May 26 at 1.557 percent. It was last 6.8 basis points lower at 1.5585 percent. The 30-year yield slid as low as 2.233 percent and was last down 6.1 basis points at 2.2341 percent. The two-year Treasury yield was almost a basis point lower at 0.1507 percent.