In Asian Equity Markets indices rose in Monday trade amid optimism on the U.S.-China trade front. Mainland Chinese shares rose by the afternoon, with the Shanghai composite up 0.75%. In Hong Kong, the Hang Seng index jumped 1.28%. Shares of life insurer AIA rose more than 2%. In Australia, the S&P/ASX 200 rose 0.15%, with most sectors in positive territory. The heavily weighted financial subindex, however, declined about 0.9%. The trading of Westpac shares was halted on Monday after the bank announced the launch of a capital raising following a 16% plunge in its statutory net profit for full year 2019
In Currency Markets major pairs started the week quietly with a holiday in Tokyo making for thin trading conditions and investors waiting to hear the first official speech from the new head of the European Central Bank later in the session. The dollar had tried to rally on Friday after U.S. payrolls beat expectations, but was undone by a soft manufacturing survey which left it looking heavy. The euro started the week firm at $1.1168 as bulls looked to test the October peak of $1.1179 and the 200‑day moving average at $1.1195. The dollar fared a little better on the yen as safe havens fell from fashion, edging up to 108.23 from Friday’s low around 107.87.
In Commodities Markets oil prices eased on Monday as traders took profit ahead of fresh European and U.S. economic data, despite hopes for some resolution to the U.S.-China trade row that has hurt global economic growth and crimped energy demand. Prices jumped about $2 a barrel on Friday after the world’s top two economies said they had made progress on trade talks while U.S. officials said the deal could be signed this month. Brent crude futures for January fell 31 cents to $61.38 a barrel, while December U.S. crude futures was at $55.91 a barrel, down 29 cents.
In US Equity Markets stocks rallied to close out the trading week on Friday as the S&P 500 set a closing record for the third time in five days after an upbeat U.S. jobs report and data on Chinese manufacturing eased concerns about slowing global growth. The S&P 500 gained 0.97%, to 3,066.92 and the Nasdaq Composite rose 1.13%, to 8,386.40. Oil major Exxon Mobil Corp rose 3.00% after it beat recently lowered third-quarter profit expectations. Qorvo Inc jumped 20.23% after the Apple supplier announced a $1 billion share buyback plan and forecast third-quarter revenue above expectations.
In Bond Markets U.S. government bond yields were higher on Friday after evidence of stronger-than-expected domestic jobs growth in October outweighed the continued contraction of the manufacturing sector, under pressure from the U.S.-China trade war. The Labor Department’s payrolls report showed that a drag from a strike at General Motors was offset by gains elsewhere, while hiring in the prior two months was stronger than previously estimated, signaling that consumers could continue to prop up the slowing economy for a while. The benchmark 10-year yield was last up 4.2 basis points to 1.733%. The two-year yield was up 3.6 basis points to 1.562%.