US Data Confirmed Decline in Jobless Claims to Fresh Lows
US equity futures and Asian stocks jumped on Friday after the major economic data came in strong. Joe Biden’s federal spending plans added to investors’ optimism and sparked a rally in cyclical shares. Treasury yields surged.
Japanese markets rose the most among Asian shares, adding 0.3%, while MSCI Inc,’s Asia-Pacific equity gauge was poised for the highest close in a month. The Nikkei climbed 1.9%, and Chinese blue chips dropped 0.1% right after the open. Financial and industrial shares contributed to the upward movement of the S&P 500. The Nasdaq 100 declined. European markets opened in the positive territory.
The crucial economic data expected on Thursday came in upbeat. It confirmed that the number of Americans seeking jobs and filing new claims for unemployment dropped to the fresh pandemic lows. As the US economy is getting back on track, more and more employers are hiring to keep pace with the reopening economy. Another report showed a 6.4% acceleration in the annualized rate of economic growth last quarter, supported by large fiscal stimulus. Biden is expected to reveal a budget presupposing $6 trillion of federal spending next fiscal year.
The 10-year US Treasury yield soared 1.62%, as investors thought of more debt supply to fund spending and experienced optimism about economic growth. The US dollar stabilized. The Japanese yen dropped, pushed lower by Japan’s decision to extend a state of emergency to rein in the spread of coronavirus in the country. China published a reference rate that disappointed investors and suggested that the yuan’s recent rally was short-lived.
Oil soared to a more than two-year top. The Commodity Spot Index jumped to the highest level in almost two weeks. Bitcoin was still trading below $40,000. The Dollar Index stabilized at 90.07 on Friday for the first time since May 1, after reaching 90.179 on Thursday.
These are the main moves traders should watch on Friday:
The Dow Jones Industrial Average added 0.4%. The Nasdaq Composite dropped 0.3%. S&P 500 futures advanced 0.3%. Japan’s Topix index soared 2%. Australia’s S&P/ASX 200 gained 1.2%. South Korea’s Kospi index surged 0.9%. Hong Kong’s Hang Seng index was 0.6% up. Shanghai Composite remained unchanged during the Asian session. Euro Stoxx futures edged 0.3% higher.
The euro traded at $1.2188. The British pound gave up 0.1% to trade at $1.4196. The Japanese yen sank to 109.85 per dollar. The offshore yuan traded at 6.3620 per dollar, rising 0.2%.
Brent added 20 cents, or 0.3%, to trade at $69.66 a barrel. WTI crude gained 34 cents, or 0.5%, to $67.19 per barrel. Gold shed 0.1% to trade at $1,893.75 per ounce. u
The yield on 10-year Treasuries gained one basis point to 1.62%. Australia’s 10-year yield jumped seven basis points to 1.70%.
Have a productive trading day!