Markets Wrap: Stocks Set to Rally in Asia after US Rebound

Futures in Australia, Hong Kong, and Japan all pointed higher after the US share market snapped a three-day drop. Overnight, the Dow Jones index and S&P 500 each gained 1.3% and 1.2% respectively with investors rush from growth to value companies as signs of a strengthening labor market tempered inflation worries. The Nasdaq climbed by 0.7%. Energy stocks lowered as a rally in commodities stalled. Financials and industrial shares outperformed.

US yields fell on Thursday despite higher expected inflation numbers, while weekly claims for unemployment benefits fell more than expected. 10-year yields fell by 4 points and eased near 1.66%. US 2-year yields fell by 1 point to near 0.16%. 

On the FX trading side, the US dollar was mixed against major currencies on Thursday according to ZERO Markets’ MetaTrader 4 platform. EUR/USD fell from highs near 1.2104 to lows around $1.205. AUD/USD rose from lows near $0.7688 to highs around $0.774. 

Global oil rose on Thursday fell by 3% as concerns on growth in India’s COVID crisis reduced stimulus upon growing inflation and the resumption in key US Colonial fuel pipeline. Brent crude fell by 3.3% to $US 67.05 a barrel. 

Precious metals trading on Thursday saw gold flat near $US1824 an ounce. Iron ore prices unchanged near a record high of $233 a tonne.

Lastly, cryptocurrency trading pared losses after Elon Musk removed Bitcoin as a payment option for its electric cars. Bitcoin is just trading below $50,000 on Friday morning.

Key events this week:
  • US CPI for April (Inflation)

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