In Asian Equity Markets shares in Japan were lower on Thursday as the Bank of Japan kept monetary policy steady. The Nikkei 225 slipped 0.3% by the lunch break in Tokyo as shares of FamilyMart dropped more than 1.5%. The Topix index also declined 0.22%. Elsewhere, mainland Chinese stocks were lower in morning trade. The Shanghai composite fell about 0.2%. Hong Kong’s Hang Seng index declined 0.61% as shares of Chinese tech behemoth Tencent dropped more than 1%. South Korea’s Kospi fell 0.11%. Shares of chipmaker SK Hynix jumped more than 2% on the back of Micron posting a first-quarter beat on the top and bottom line.

 

In Currency Markets the U.S. dollar took in stride the impeachment of U.S. President Donald Trump on Thursday while its Australian counterpart rallied after a surprise fall in the country’s unemployment rate. The British pound remained under pressure on renewed fears of a chaotic exit from the European Union. It was last at $1.3083 after sliding nearly 2% in as many days. Dollar traders were remarkably sanguine after a majority of lawmakers in the U.S. House of Representatives voted to impeach Trump. The Aussie climbed as high as $0.6883 after the robust jobs data suggested the country’s labour market might still have enough life in it to lessen the need for more interest rate cuts.

 

In Commodities Markets oil prices remained in touching distance of three-month peaks on Thursday, extending a robust streak that began a week ago, after data showed U.S. crude inventories had dropped while output cuts by major producers kept supply snug. Brent crude futures edged down 1 cent to $66.16 a barrel, while U.S. WTI crude fell 3 cents to $60.90. Trading volume was thin, with not even news of President Donald Trump’s impeachment by the U.S. House of Representatives stirring the oil market. According to weekly data released by the EIA on Wednesday, U.S. crude inventories fell 1.1 million barrels in the week to Dec. 13, while gasoline and distillates stockpiles rose.

 

In US Equity Markets the S&P 500 inched to an all-time high on Wednesday, extending a record-setting run on investors’ optimism about global economic growth, though a steep drop in FedEx Corp shares limited gains. The Nasdaq also hit a record high. All three major indexes were on pace for their sixth straight session of gains, building on a rally from late last week spurred by progress toward an initial U.S.-China trade deal. The small-cap Russell 2000 rose 0.3%, hitting its highest level in 14 months. Facebook Inc shares rose 2.2%, providing the biggest boost to the S&P 500, as Deutsche Bank raised its price target on the stock.

 

In Bond Markets U.S. Treasury yields rose on Wednesday as investors shrugged off the likely impeachment of U.S. President Donald Trump and focused on positive economic signs. The benchmark 10-year yield was up 3.1 basis points to 1.92% in afternoon trading. It has risen steadily over the course of the month from a low of 1.69% on Dec 3, a trend analysts said pointed to a relatively stable economic outlook. On Wednesday, New York Fed President John Williams expressed an optimistic outlook in an interview with CNBC. The two-year yield, which typically moves in step with interest rate expectations, was unchanged at 1.63%.

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