June 24, 2021

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US Employment Report, Dollar Movements, Oil Prices

US Employment Report, Dollar Movements, Oil Prices

Signage outside the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, Monday, January. 4, 2021.

Noriko Hayashi | Bloomberg via Getty Images

SINGAPORE – Asia Pacific markets were expected to open in a mixed fashion Thursday as investors look forward to the US employment report which should provide clues as to how long the Fed will hold on.

Australian ASX 200 related futures rose 0.07% to 7,072, slightly lower than the benchmark index’s last close at 7,095.80.

Japanese markets are expected to trade for the first time this week after being closed for public holidays. Nikkei futures indicated a slightly higher opening for the market earlier in the hour.

Thursday’s Asia-Pacific session follows a mixed ending overnight on Wall Street, where the Dow Jones Industrial Average ended with a new all-time closing high.

The US jobs report – one of the most influential economic reports in global financial markets – is due for April on Friday, and economists say payrolls could easily reach 1 million after 916,000 jobs were added in March.

Federal Reserve Vice President Richard Clarida told CNBC’s “Closing Bell” on Wednesday that as the job picture in the United States continues to improve, substantial progress must be made before the central bank feels comfortable enough to pull everything back. the help he received. has been providing since the Covid-19 pandemic disrupted the longest expansion in US history.

Treasury Secretary Janet Yellen this week said interest rates may need to rise to keep a hold on the burgeoning growth of the US economy, caused in part by trillions of dollars in government stimulus spending. He later somewhat moderated his comments on the need for higher rates.

“Despite constant assurances from Yellen and a number of Fed officials that the next increase in inflation will prove ‘transitory’ … the markets are evidently a little more concerned,” said Rodrigo Catril. foreign exchange strategy expert at the National Australia Bank. on a morning note.

“Option prices indicate that the market (sees) a one in three chance higher than the US CPI could average more than 3% over the next five years,” he said, adding that strong commodity prices also helped raise inflation expectations.

Currencies and oil

The US dollar was last trading at 91.308 against a basket of its competitors, remaining relatively rangebound.

Elsewhere, the Japanese yen changed hands at $ 109.25 per dollar, while the Australian dollar remained unchanged at $ 0.7747.

Oil prices slid during Asian trading hours on Thursday. US crude oil futures fell 0.85% to $ 65.07.

Overnight, Reuters reported that U.S. crude oil inventories fell by 8 million barrels in the past week, exceeding expectations for a 2.3 million barrel decline, according to the Energy Information Administration.