Futures in Australia and Japan pointed higher on Friday morning, Hong Kong futures were steady. The stronger opens reflect investor’s positive sentiment on the solid US economic data, and the rally in cyclical shares as a result of Joe Biden’s federal spending amounted to potentially $6 trillion in the next fiscal year. The US equities overnight saw the Dow Jones and S&P 500 lifted by 0.4% and 0.1% respectively, helped by industrial and financial shares. Small-cap outperformed and the tech-heavy Nasdaq fell by 0.1%.
US Treasury yields surged on Thursday. US 10-year yields climbed 3 points to near 1.6%. US 2-year yields were steady near 0.147%.
Foreign exchange trading on Thursday saw a dollar mixed against a basket of other currencies. According to ZERO Markets’ MetaTrader 4 platform, EUR/USD rose from lows near 1.2180 to high around $1.2215. AUD/USD rose from lows near $0.7725 to highs around $0.7745. The yuan is near a 6-year high against the dollar and is in focus after China’s central bank said that the exchange rate can’t be used as a tool to offset the impact of higher commodity prices or to spur exports.
Elsewhere, global oil prices rose by 1% on Thursday on the back of rising sentiment on strong economic data. Brent crude rose 0.9% to $US 66.84 a barrel.
Iron ore prices fell by 2.0% to $187.45 a tonne. Precious metals trading saw gold trading steady near $US 1,898 an ounce.
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