Chinese data, US jobs in focus... $500 billion slump for bond investors...
Chinese data, US jobs in focus
It doesn’t happen often but China released data Thursday which exceeded the expectations of analysts. Meanwhile markets are anticipating a jump in US jobs when official data is released Friday.
Despite the Chinese manufacturing PMI showing growth in the sector, many Asian indexes closed lower including Shanghai. Japan’s Nikkei saw gains as the US dollar strengthened but Hong Kong had the largest gain of the session.
European indexes digested the Chinese data and weighed the impact of strong US jobs growth in early trading. Markit data revealing a 3-month low for Eurozone manufacturing. The firm also released UK manufacturing PMI exceeding expectations. The pound has strengthened.
Oil prices advanced overnight on the stronger dollar and despite a lower than forecast US gasoline drawdown and growing stockpiles.
Wall Street and Toronto are expected to open higher.
$500 billion slump for bond investors
Investors have lost U$500 billion of income from global bonds as yields have slumped. Fitch Ratings says that the figure is based on $38 trillion of sovereign debt and the loss of income compared to 2011.
"Cash flow benefits have effectively been transferred from global investors to sovereign issuers, as sovereign borrowing costs have dropped in response to central bank monetary stimulus," the report says. "This has posed new challenges for income-reliant investors, such as insurers and pension funds, while enabling governments to borrow at increasingly attractive rates."
It doesn’t happen often but China released data Thursday which exceeded the expectations of analysts. Meanwhile markets are anticipating a jump in US jobs when official data is released Friday.
Despite the Chinese manufacturing PMI showing growth in the sector, many Asian indexes closed lower including Shanghai. Japan’s Nikkei saw gains as the US dollar strengthened but Hong Kong had the largest gain of the session.
European indexes digested the Chinese data and weighed the impact of strong US jobs growth in early trading. Markit data revealing a 3-month low for Eurozone manufacturing. The firm also released UK manufacturing PMI exceeding expectations. The pound has strengthened.
Oil prices advanced overnight on the stronger dollar and despite a lower than forecast US gasoline drawdown and growing stockpiles.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,400.88 (-0.29 per cent) | -0.02 per cent | +14.59 per cent |
| TSX Composite | 14,597.95 (-0.59 per cent) | +0.10 per cent | +8.28 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 6,816.70 (+0.52 per cent) | +1.83 per cent | +12.51 per cent |
| German DAX | 10,642.58 (+0.47 per cent) | +3.02 per cent | +6.26 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,301.58 (-0.79 per cent) | +3.93 per cent | -1.80 per cent |
| Japan Nikkei | 16,926.84 (+0.23 per cent) | +1.75 per cent | -6.82 per cent |
| Other Data (at 2.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 46.89 (+0.00 per cent) |
44.76 (+0.13 per cent) |
1308.30 (-0.24 per cent) |
U$0.7625 |
| Aus. Dollar |
|||
| U$0.7537 | |||
$500 billion slump for bond investors
Investors have lost U$500 billion of income from global bonds as yields have slumped. Fitch Ratings says that the figure is based on $38 trillion of sovereign debt and the loss of income compared to 2011.
"Cash flow benefits have effectively been transferred from global investors to sovereign issuers, as sovereign borrowing costs have dropped in response to central bank monetary stimulus," the report says. "This has posed new challenges for income-reliant investors, such as insurers and pension funds, while enabling governments to borrow at increasingly attractive rates."
