2024-07-05 05:45

S&P 500 and Nasdaq hit fresh closing high Benchmark 10-year Treasury yields dip Pound firm after UK Labour election win U.S. dollar weakens, gold rises Crude oil prices settle lower NEW YORK/LONDON, July 5 (Reuters) - Global stocks rose while U.S. Treasury yields dipped on Friday after highly anticipated jobs data boosted market expectations of a Federal Reserve interest-rate cut. U.S. job growth slowed to a still-healthy pace in June, with unemployment rising to 4.1%, indicating that the Fed could begin cutting rates as inflation slows. MSCI's gauge of stocks across the globe (.MIWD00000PUS) New Tab, opens new tab rose 0.34% to 817.96, a record high. On Wall Street, all three major indexes finished firmer, with the S&P 500 and Nasdaq scoring all-time closing highs led by communication services, consumer staples, consumer discretionary and healthcare stocks. "Our overall thesis for the economy right now is one that's cooling but not weak," said Keith Lerner, co-chief investment officer at Truist Advisory Services in Atlanta. "I think this report confirmed this but also I think it is the 4% plus unemployment rate that will get the Fed's attention and probably provides them flexibility likely to start reducing rates. We think it's likely September," he added. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 0.17% to 39,375.87, the S&P 500 (.SPX) New Tab, opens new tab gained 0.54% to 5,567.19 and the Nasdaq Composite (.IXIC) New Tab, opens new tab climbed 0.90% to 18,352.76. Benchmark 10-year Treasury yields slid following the closely watched jobs data. The yield on benchmark U.S. 10-year notes fell 6.9 basis points to 4.278%. UK stocks gave up earlier gains and finished lower after Keir Starmer became Britain's new prime minister following a landslide general election victory by his Labour Party after 14 years of Conservative rule. London's FTSE 100 index (.FTSE) New Tab, opens new tab fell 0.45%. The market focus in Europe was quickly shifting from the British election outcome to Sunday's second-round legislative election in France. Europe's broad STOXX 600 (.STOXX) New Tab, opens new tab index dropped 0.18%. In currency markets, the dollar index fell slightly, the British pound sterling gained ground after the British election, the euro rose ahead of the French vote, and the dollar weakened against the yen before paring losses. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.28% at 104.87. Sterling strengthened 0.45% at $1.2815 and the euro was up 0.25% at $1.0837. Oil prices settled lower as the rising possibility of a ceasefire deal in Gaza outweighed strong summer fuel demand and potential supply disruptions from Gulf of Mexico hurricanes. Brent crude futures settled 1.02% lower to $86.54 a barrel, after reaching their highest since April earlier in the session. U.S. West Texas Intermediate (WTI) crude futures settled at $83.16 a barrel, down 0.9%. Gold prices extended gains to their highest level in a month as the U.S. dollar weakened. Spot gold added 1.39% to $2,388.86 an ounce. U.S. gold futures gained 0.8% to $2,378.60 an ounce. In cryptocurrencies, bitcoin was set for its biggest weekly fall in more than a year on worries over the likely dumping of tokens from defunct Japanese exchange Mt. Gox. Bitcoin fell 3.12% at $56,509.00, while Ethereum declined 5.07% at $2983.11. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-07-05/

2024-07-05 05:40

NEW YORK/SINGAPORE/LONDON, July 5 (Reuters) - Bitcoin was set for its biggest weekly fall in nearly a year on Friday, as traders fretted over the likely dumping of tokens from defunct Japanese exchange Mt. Gox and further selling by leveraged players after the cryptocurrency's strong run. The price of the world's largest cryptocurrency slid as much as 8% on the day to $53,523, its lowest since late February. It was last trading at $56,565, down more than 3% on the day. It was on track for a more than 10% weekly decline, its biggest since August 2023. Ether , the world's second-largest cryptocurrency, slid to as low as $2,822.30, a more than two-month low. It was last at $2,976.62, down 5.28%. Media reports said Mt. Gox, the world's leading exchange for cryptocurrencies before it collapsed a decade ago, may start returning bitcoin to creditors, who are seen as likely sellers since the token's worth was only hundreds of dollars in 2014. "The selling pressure is still related to creditor selling from the failed Mt Gox exchange," said Tony Sycamore, a market analyst at IG. "However, the acceleration to the downside suggests the market is trying to get ahead of the creditor flows." The move downward in bitcoin triggered the largest daily liquidations for crypto traders since the collapse of crypto exchange FTX in 2022, according to a research note from Wintermute, a crypto trading firm. Analysts have also pointed to worries over the possibility of Joe Biden being replaced as the Democrats' presidential nominee by someone less pro-crypto after a shaky debate performance with rival candidate Donald Trump. "What's striking about this slide in bitcoin is it comes as U.S. stocks and global equity indexes rest at or near record highs - the correlation between Bitcoin and mainstream equities is fraying," said Antoni Trenchev, co-founder of crypto platform Nexo. Bitcoin had a strong start to the year after the launch of exchange-traded funds in the U.S., propelling it to a record $73,803.25 in mid-March. However, it has since struggled. "With an asset that has been rangebound for quite a while and recently in the lower end of that range, there are plenty of margined positions," said Justin D'Anethan at digital assets market maker Keyrock. "This of course creates a cascading effect, pushing prices further down than it might in a market with less leverage." Sign up here. https://www.reuters.com/markets/currencies/bitcoin-slides-four-month-lows-ether-sinks-8-2024-07-05/

2024-07-05 05:12

Bitcoin falls on Mt. Gox liquidation fears Sterling up after UK election Eyes on French elections on Sunday NEW YORK, July 5 (Reuters) - The U.S. dollar index stayed slightly lower on Friday after data showed U.S. job growth slowed marginally in June while the unemployment rate rose, underscoring the view the Federal Reserve could begin cutting interest rates in September. Nonfarm U.S. payrolls increased by 206,000 jobs last month, the Labor Department report showed. Data for May was revised sharply down to show 218,000 jobs added instead of the previously reported 272,000. The unemployment rate rose to 4.1%, slightly higher than the estimated 4.0%. Investors have been watching the labor market and inflation data closely as they try to gauge when the Fed could begin cutting rates from nearly two-decade highs. The dollar index initially extended declines after the data. The dollar weakened against the yen before paring losses. The dollar index , which measures the greenback against a basket of currencies, was last down 0.28% at 104.87 and hit a three-week low early. Against the Japanese yen , the dollar weakened 0.34% to 160.73. It was near 160.45 just after the U.S. payrolls data. "We see rates coming down across the curve on confirmation of a moderation in U.S. labor markets. The unexpected rise in the unemployment rate, the deceleration in wage gains and revisions in prior months' headline gains all point to a slowing in labor market conditions," said Karl Schamotta, chief market strategist at Corpay in Toronto. "This is... raising the likelihood that we do see (Fed) Chair Powell put a September rate cut on the table either at the July policy meeting or at the Jackson Hole conference in August." Futures markets are now pricing in a roughly 72% chance for a 25 basis point rate cut at the Fed's meeting in September, up from a 57.9% chance seen a week ago, according to CME's FedWatch Tool. The euro was last up 0.23% at $1.0835 and on track for its biggest weekly gain of the year against the dollar. The euro has been bolstered by signs France could be heading for a hung parliament in elections on Sunday rather than a ruling majority for the far-right National Rally. Marine Le Pen's eurosceptic, anti-immigration National Rally (RN) topped the parliamentary election's first round with a third of the vote, opening the prospect of the far right leading a French government for the first time since World War Two. The pound firmed as the Labour party secured a landslide victory in the UK general election. Sterling strengthened 0.46% to $1.2814. Bitcoin was set for its biggest weekly fall in nearly a year as traders worried about the likely dumping of tokens from defunct Japanese exchange Mt. Gox and further selling by leveraged players after the cryptocurrency's strong run. The price of the world's largest cryptocurrency slid as much as 8% on the day to $53,523, its lowest level since late February. It was on track for its biggest weekly decline since August 2023. Bitcoin was last down 3.08% at $56,530.00. Ethereum declined 4.81% at $2991.8. Sign up here. https://www.reuters.com/markets/currencies/dollar-three-week-lows-pound-takes-uk-election-stride-2024-07-05/

2024-07-05 04:33

A look at the day ahead in European and global markets from Tom Westbrook Markets are greeting Britain's first Labour prime minister since Gordon Brown with a steady hand, which after rollercoaster years will be a window of opportunity for an economic reset. Indeed the election landslide, set to deliver Labour under Keir Starmer a huge majority, was so expected that traders had welcomed it already as drawing a line under a tumultuous period. Sterling is the only G10 currency to have gained on the dollar over the year so far. On a trade-weighted basis , it is back where it was in 2016, six prime ministers ago, at the time of the Brexit vote. The premium investors demand for holding gilts rather than German 10-year bonds has remained stable around 160 basis points - a far cry from the 230 bps hit during the mini-budget crisis of 2022. Futures on the FTSE 100 were up 0.2% in Asia, as results trickled in and the market has record highs this year, buoyed by a slow-but-steady economy and decelerating inflation. Labour's exact plans for growing the economy and for the exchequer are not known. But for now, at least, policymakers may proceed against a backdrop of market calm. The euro was making itself comfortable, too, in anticipation of France's far right National Rally falling short of an absolute majority at Sunday's parliamentary runoff - though the week's 1% gain may be vulnerable to surprises. Later in the session, which is thinned as many traders make a long weekend of Thursday's Independence Day holiday, U.S. jobs data is expected to show a slight cooling in the labour market. President Joe Biden also appears on ABC News for an interview. Asian shares rose, sending stock indexes in Japan and Taiwan to record highs and South Korea's benchmark to a multi-year peak. Singapore's often somnolent equity market stepped back after a rally in heavyweight bank stocks had it shooting higher. Key developments that could influence markets on Friday: - U.S. non-farm payrolls data - Joe Biden interview airs Sign up here. https://www.reuters.com/markets/global-markets-view-europe-2024-07-05/

2024-07-05 04:22

MUMBAI, July 5 (Reuters) - The Indian rupee was slightly stronger on Friday as most of its Asian peers rose heading into a closely watched U.S. jobs report later in the day, which is expected to influence expectations of when the Federal Reserve will start easing rates. The rupee was at 83.4625 against the U.S. dollar as of 09:40 a.m. IST, marginally higher than its previous close at 83.4925. The dollar index fell to its lowest in three weeks in Asia trading and was last down 0.1% at 105. Broad dollar weakness helped lift the rupee's Asian peers with the Japanese yen up 0.4% at 160.59 and the Chinese yuan also up about 0.1%. Meanwhile, Brent crude oil futures eased slightly after touching their highest level since April of $87.60 per barrel. Broad interbank dollar offers aided the rupee in early trading on Friday, a foreign exchange trader at a private bank said. The rupee may look to rise over 83.40 but importers' hedging demand could cap gains, the trader added. Traders will keep a close eye on the U.S. non-farm payrolls report due later in the day for cues on the future path of Fed policy rates. Mostly weak economic data this week has weighed on the dollar and U.S. bond yields, with the odds of a September rate cut by the Fed rising to about 73%, up from about 66% a week earlier, according to the CME's FedWatch tool. The non-farm payrolls report is expected to show that the U.S. economy added 190,000 jobs in June, down from 272,000 in July, according to economists polled by Reuters. "We still think that the dollar should weaken from here, with the Fed having the space to cut rates as the labour market softens further," Lloyd Chan, senior currency analyst at MUFG Bank said in a note. Sign up here. https://www.reuters.com/markets/currencies/rupee-inches-higher-tracking-gains-most-asian-peers-2024-07-05/

2024-07-04 23:06

LIMA, July 4 (Reuters) - The presidents of Peru and Ecuador pledged to join efforts to fight transnational organized crime and also discussed new possibilities for oil processing, Peruvian Dina Boluarte said on Thursday. Boluarte made the remarks in Lima after meeting with her Ecuadorian counterpart, Daniel Noboa, in which the two signed a joint declaration between the Latin American countries. "We have managed to define commitments with collaborative approaches to confront transnational organized crime," Boluarte said, specifying that her and Noboa had talked about cooperation on migration and illegal mining. On oil integration, the leaders addressed "the possibility of processing Ecuadorian oil in the Talara refinery," said Boluarte, without further details in a speech accompanied by Noboa. The Talara refinery belongs to state-run Petroperu, Peru's cash-strapped oil firm that is struggling under multi-million debts and has little liquidity to maintain its operations. Sign up here. https://www.reuters.com/world/americas/peru-ecuador-join-efforts-security-oil-integration-2024-07-04/