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Reuters
04-07-2025
- Business
- Reuters
Rupee to weaken after 'rare' positive news for dollar from US jobs report
MUMBAI, July 4(Reuters) - The Indian rupee is set to decline at open on Friday after data showed the U.S. labour market remained resilient, fuelling a rally in the dollar and pushing up Treasury yields. The 1-month non-deliverable forward indicated an open in the 85.46 to 85.50 range, versus 85.31 in the previous session. "The 85.30 level is a major support (for USD/INR), and the U.S. jobs data just reinforces that it's unlikely to break below that level in a hurry," a currency dealer at a Mumbai-based bank. "The dollar's broad recovery and the U.S. yield move have locked in that floor for now." U.S. data on Thursday showed non-farm payrolls rose more than forecast in June, while the unemployment rate unexpectedly dipped, highlighting ongoing labour market strength. Treasury yields climbed, lifting the dollar against major peers, while markets dialled back expectations of a Federal Reserve rate cut at this month's meeting. The jobs data is a 'rare piece of good news" for the U.S. dollar, Richard Potts, economist at FX advisory firm Bondford, said. "The data reduces the likelihood of the US Fed cutting rates at the July (meeting), maintaining the rate advantage U.S. has over other major economies," he said, while noting that just days earlier, Fed Chair Jerome Powell had kept the door open to a July cut, which had weighed on the dollar. Meanwhile, the Republican-controlled House of Representatives narrowly passed U.S. President Donald Trump's spending and tax cuts bill that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt. "The question is how much of the bill's passage was already priced in," said Chris Weston, head of research at broker Pepperstone. Weston said the longer segment of the Treasury curve needs to be tracked for any rise in the term premium before making a call. KEY INDICATORS: ** India's market regulator bars U.S. trading company Jane Street from accessing the local securities market ** One-month non-deliverable rupee forward at 85.58; onshore one-month forward premium at 10 paise ** Dollar index up at 97.01 ** Brent crude futures down 0.4% at $68.5 per barrel ** Ten-year U.S. note yield at 4.35% ** As per NSDL data, foreign investors sold a net $87.2 million worth of Indian shares on July 2 ** NSDL data shows foreign investors sold a net $158.6 million worth of Indian bonds on July 2
Irish Times
03-07-2025
- Business
- Irish Times
Strong US jobs data sends global stock markets higher
Strong US jobs data sent the dollar and Wall Street higher on Thursday, while in Europe, Britain's bond markets recovered from a renewed burst of debt worries. Dublin Euronext Dublin was flat on what was described by traders as a muted day in advance of a US holiday on Friday. The house building sector bounced back from some weakness on Wednesday, with Cairn Homes and Glenveagh Properties each up 2 per cent. Cavan-based insulation specialist Kingspan, meanwhile, finished down 2 per cent. Among the financial names, it was a better day for AIB and Bank of Ireland, which were each up 1.5 per cent. READ MORE Ryanair , another heavyweight on the index, was down 0.5 per cent at close of business, after cancelling more than 400 flights following a two-day strike by air traffic controllers in France. London London's main stock indexes closed higher as political tensions appeared to ease after Chancellor Rachel Reeves said she's 'totally' up for the job, drawing support from prime minister Keir Starmer. The blue-chip FTSE 100 was up 0.6 per cent, while the midcap index gained 1.2 per cent. Main FTSE stock indexes had declined on Wednesday in a marketwide sell-off after Reeves appeared tearful in parliament following a series of U-turns on welfare reforms that blew a hole in her budget plans. Retail stocks topped the sectoral chart with a 2.2 per cent gain after electricals retailer Currys beat profit estimates on strong demand for mobile and computing products. Currys shares jumped 7.1 per cent, while peer AO World was up 1 per cent. However, Watches of Switzerland fell 8 per cent and was among the top midcap decliners after the luxury retailer warned of a margin hit due to tariff pressures. Pharmaceutical stocks were the sectoral losers, declining 1.3 per cent. AstraZeneca fell 1.8 per cent and GSK lost 1.1 per cent. Europe The pan-European Stoxx 600 index climbed 0.4 per cent and kept MSCI's main 47-country world shares gauge on course for its seventh record high in the last eight sessions. Meanwhile, the Cac 40 in Paris closed up 0.1 per cent, while the Dax 40 in Frankfurt firmed 0.4 per cent. Euro zone government bond yields ended the day lower with the focus on events outside the currency bloc, after US jobs data blew past expectations, and the British gilt market after the previous day's sharp sell-off there. Germany's 10-year bond yield closed down 4 basis points at 2.578 per cent, having touched an earlier low of 2.571 per cent. New York The S&P 500 and the Nasdaq touched fresh record highs after a stronger-than-expected US jobs report pointed to labour market resilience, while Nvidia looked set to become the most valuable company in history. Nvidia rose as much as 2.4 per cent, putting it on track to become the world's most valuable company in history, with the chipmaker's market capitalisation nearing $4 trillion. Its shares were last up 1.6 per cent, trading at all-time highs. The S&P 500 and the Nasdaq extended their record-winning session as signs of a resilient economy and easing trade tensions following a series of agreements between the United States and other countries continue to propel stocks higher. The blue-chip Dow was just 0.8 per cent shy of all-time highs touched in December. All three main indexes were on track to end the holiday-truncated week on a positive note. Shares of chip design software firms Synopsys and Cadence Design Systems climbed 5.1 per cent and 4.6 per cent, respectively, in premarket trading after the US lifted export restrictions on chip design software to China. Tripadvisor climbed 16.3 per cent after the Wall Street Journal reported activist investor Starboard Value had built a more than 9 per cent stake in the online travel company. Datadog jumped 13.5 per cent after the cloud security firm was set to replace Juniper Networks on the S&P 500. – Additional reporting: Agencies
Free Malaysia Today
30-06-2025
- Business
- Free Malaysia Today
Asian shares track Wall St gains before payrolls test
The bullish sentiment spilled over into Japan's Nikkei, which rose 1.0%, while South Korean stocks gained 0.5%. (EPA Images pic) SYDNEY : Asian shares firmed on Monday as seemingly unquenchable demand for technology companies lifted S&P 500 futures to another all-time peak, while the dollar dipped on concerns US jobs data will show enough weakness to justify larger rate cuts. Investors were also keeping a wary eye on the progress of a huge US tax-cutting and spending bill slowly making its way through the senate, with signs it may not make it by President Donald Trump's preferred July 4 deadline. The Congressional Budget Office estimated the bill would add US$3.3 trillion to the nation's debt, testing foreign appetite for US Treasuries. There was no doubting the demand for the US tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.3%, while S&P 500 e-minis added 0.2%. The bullish sentiment spilled over into Japan's which rose 1.0%, while South Korean stocks gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.1%. A holiday on Friday means US payrolls are a day early, with analysts forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3%. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September. 'While initial jobless claims retreated somewhat from their recent high, continuing claims jumped higher yet again,' noted Michael Feroli, head of US economics at JPMorgan. 'Consumers' assessment of labour market conditions also deteriorated in the latest confidence report.' 'Both of these developments suggest that the unemployment rate in June should tick up to 4.3%, with a significant risk of reaching 4.4%.' The latter outcome would likely see futures push up the chance of a July easing from the current 18% and price in more than the present 63 basis points of cuts for this year. Dollar doldrums Fed chair Jerome Powell will have an opportunity to repeat his cautious outlook when he joins several other central bank chiefs at the European Central Bank forum in Sintra on Tuesday. The prospect of an eventual policy easing has helped Treasuries weather worries about the US budget deficit and the huge amount of borrowing it entails. Yields on 10-year Treasuries were steady at 3.27%, having fallen 9 basis points last week. The dollar has not fared so well, in part due to concerns tariffs and chaotic policies from the White House will drag on economic growth and erode the country's claim to exceptionalism. The euro was near its highest since September 2021 at US$1.1731, having climbed 1.7% last week, while sterling stood near a similar peak at US$1.3719. The dollar was down a fraction at 144.48 yen, after losing 1% last week, while the dollar index dipped to 97.163. James Reilly, a senior markets economist at Capital Economics, noted the dollar had fallen by more at this stage in the year than in any previous year since the US moved to a free-floating exchange rate in 1973. 'At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move,' he added. 'So, we suspect that this could be a pivotal period for the greenback – either it turns around here or there is another 5% or so fall around the corner.' In commodity markets, the general revival in risk sentiment has undermined gold, which slipped to US$3,266 an ounce and further away from April's record top of US$3,500. Oil prices continued to struggle on concerns about plans for increased output from Opec+, which contributed to a 12% slide last week. Brent dropped a further 55 cents to US$67.22 a barrel, while US crude eased 68 cents to US$64.84 per barrel.
Reuters
30-06-2025
- Business
- Reuters
Asia shares track Wall St gains before payrolls test
SYDNEY, June 30 (Reuters) - Asia shares firmed on Monday as seemingly unquenchable demand for technology companies lifted S&P 500 futures to another all-time peak, while the dollar dipped on concerns U.S. jobs data will show enough weakness to justify larger rate cuts. Investors were also keeping a wary eye on the progress of a huge U.S. tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by President Donald Trump's preferred July 4 deadline. The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt, testing foreign appetite for U.S. Treasuries. There was no doubting the demand for the U.S. tech sector and megacap growth stocks including Nvidia (NVDA.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Amazon (AMZN.O), opens new tab. Nasdaq futures rose another 0.3%, while S&P 500 e-minis added 0.2%. The bullish sentiment spilled over into Japan's Nikkei (.N225), opens new tab which rose 1.0%, while South Korean stocks (.KS11), opens new tab gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab firmed 0.1%. A holiday on Friday means U.S. payrolls are a day early, with analysts forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3%. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September. "While initial jobless claims retreated somewhat from their recent high, continuing claims jumped higher yet again," noted Michael Feroli, head of U.S. economics at JPMorgan. "Consumers' assessment of labor market conditions also deteriorated in the latest confidence report." "Both of these developments suggest that the unemployment rate in June should tick up to 4.3%, with a significant risk of reaching 4.4%." The latter outcome would likely see futures push up the chance of a July easing from the current 18% and price in more than the present 63 basis points of cuts for this year. Fed Chair Jerome Powell will have an opportunity to repeat his cautious outlook when he joins several other central bank chiefs at the European Central Bank forum in Sintra on Tuesday. The prospect of an eventual policy easing has helped Treasuries weather worries about the U.S. budget deficit and the huge amount of borrowing it entails. Yields on 10-year Treasuries were steady at 3.27%, having fallen 9 basis points last week. The dollar has not fared so well, in part due to concerns tariffs and chaotic policies from the White House will drag on economic growth and erode the country's claim to exceptionalism. The euro was near its highest since September 2021 at $1.1731 , having climbed 1.7% last week, while sterling stood near a similar peak at $1.3719 . The dollar was down a fraction at 144.48 yen , after losing 1% last week, while the dollar index dipped to 97.163 . James Reilly, a senior markets economist at Capital Economics, noted the dollar had fallen by more at this stage in the year than in any previous year since the U.S. moved to a free-floating exchange rate in 1973. "At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," he added. "So, we suspect that this could be a pivotal period for the greenback – either it turns around here or there is another 5% or so fall around the corner." In commodity markets, the general revival in risk sentiment has undermined gold, which slipped to $3,266 an ounce and further away from April's record top of $3,500. Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12% slide last week. Brent dropped a further 55 cents to $67.22 a barrel, while U.S. crude eased 68 cents to $64.84 per barrel.
Yahoo
30-06-2025
- Business
- Yahoo
Asia shares track Wall St gains before payrolls test
By Wayne Cole SYDNEY (Reuters) -Asia shares firmed on Monday as seemingly unquenchable demand for technology companies lifted S&P 500 futures to another all-time peak, while the dollar dipped on concerns U.S. jobs data will show enough weakness to justify larger rate cuts. Investors were also keeping a wary eye on the progress of a huge U.S. tax-cutting and spending bill slowly making its way through the Senate, with signs it may not make it by President Donald Trump's preferred July 4 deadline. The Congressional Budget Office estimated the bill would add $3.3 trillion to the nation's debt, testing foreign appetite for U.S. Treasuries. There was no doubting the demand for the U.S. tech sector and megacap growth stocks including Nvidia, Alphabet and Amazon. Nasdaq futures rose another 0.3%, while S&P 500 e-minis added 0.2%. The bullish sentiment spilled over into Japan's Nikkei which rose 1.0%, while South Korean stocks gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.1%. A holiday on Friday means U.S. payrolls are a day early, with analysts forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3%. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to wait on cutting rates until they can gauge the true impact of tariffs on inflation, so a weak report would stoke speculation of a rate cut in July rather than September. "While initial jobless claims retreated somewhat from their recent high, continuing claims jumped higher yet again," noted Michael Feroli, head of U.S. economics at JPMorgan. "Consumers' assessment of labor market conditions also deteriorated in the latest confidence report." "Both of these developments suggest that the unemployment rate in June should tick up to 4.3%, with a significant risk of reaching 4.4%." The latter outcome would likely see futures push up the chance of a July easing from the current 18% and price in more than the present 63 basis points of cuts for this year. DOLLAR DOLDRUMS Fed Chair Jerome Powell will have an opportunity to repeat his cautious outlook when he joins several other central bank chiefs at the European Central Bank forum in Sintra on Tuesday. The prospect of an eventual policy easing has helped Treasuries weather worries about the U.S. budget deficit and the huge amount of borrowing it entails. Yields on 10-year Treasuries were steady at 3.27%, having fallen 9 basis points last week. The dollar has not fared so well, in part due to concerns tariffs and chaotic policies from the White House will drag on economic growth and erode the country's claim to exceptionalism. The euro was near its highest since September 2021 at $1.1731, having climbed 1.7% last week, while sterling stood near a similar peak at $1.3719. The dollar was down a fraction at 144.48 yen, after losing 1% last week, while the dollar index dipped to 97.163. James Reilly, a senior markets economist at Capital Economics, noted the dollar had fallen by more at this stage in the year than in any previous year since the U.S. moved to a free-floating exchange rate in 1973. "At this point, further weakness could become self-reinforcing as underhedged European/Asian portfolios chase the move," he added. "So, we suspect that this could be a pivotal period for the greenback – either it turns around here or there is another 5% or so fall around the corner." In commodity markets, the general revival in risk sentiment has undermined gold, which slipped to $3,266 an ounce and further away from April's record top of $3,500. [GOL/] Oil prices continued to struggle on concerns about plans for increased output from OPEC+, which contributed to a 12% slide last week. [O/R] Brent dropped a further 55 cents to $67.22 a barrel, while U.S. crude eased 68 cents to $64.84 per barrel. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
