June 26, 2022

Asian stocks traded mixed on Monday over upbeat U.S. October payrolls report. The report of long-delayed U.S. $1 trillion infrastructure bill from Friday lead investor sentiment rise, even though a broader social safety net plan still remains elusive.

Over the weekend, a data also showed China’s exports beat forecasts in October to deliver a record trade surplus.

Market summary

• MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2%.
• Japan’s Nikkei short of a recent five-week peak lost early gains to fall 0.1%.
• Chinese blue chips dawdled either side of flat.
• Nasdaq futures after 10 straight sessions of gains which left the index looking overextended fell off 0.4%.
• S&P 500 futures fell 0.2%.
• While EUROSTOXX 50 futures eased 0.1% and FTSE futures were flat.
• Yields on 10-year Treasuries dived 10 basis points on the week and were last at 1.47%.
• The dollar index was holding at 94.331, from a top of 94.634.
• The dollar was also trying to sustain its bull run on the Japanese yen at 113.54, above support around 113.25.
• The retreat in bond yields was a boon for gold, which offers no fixed return, and lifted it to $1,818 an ounce.
• The Bank of England’s sudden decision left sterling down 1.4% over last week and trading at $1.3473, while the euro touched a 16-month trough before steadying at $1.1556 .
• Brent rose another $1.01 to $83.75 a barrel, while U.S. crude gained $1.07 to $82.34.

According to reports, the robust U.S payrolls reported on Friday included upward revisions to the previous couple of months and another strong reading on wages.

While the tightness in the labour market combined with dislocation in global supply chains should also result in another high reading for U.S. consumer prices due on Wednesday.

According to analysts, an alternative measure of core trimmed mean inflation has already picked up markedly to an annual 3.6%.

The oil prices flattened after OPEC+ producers rebuffed a U.S. call to accelerate output increases even as demand nears pre-pandemic levels.

Saudi Aramco has also raised its official selling price of crude to all buyers across the globe.