AGL 5.95 Decreased By ▼ -0.13 (-2.14%)
ANL 9.26 Decreased By ▼ -0.14 (-1.49%)
AVN 80.82 Decreased By ▼ -0.64 (-0.79%)
BOP 5.20 Decreased By ▼ -0.07 (-1.33%)
CNERGY 4.86 Decreased By ▼ -0.04 (-0.82%)
EFERT 81.82 Increased By ▲ 0.27 (0.33%)
EPCL 53.94 Decreased By ▼ -0.06 (-0.11%)
FCCL 14.29 Decreased By ▼ -0.11 (-0.76%)
FFL 5.93 Decreased By ▼ -0.12 (-1.98%)
FLYNG 7.44 Decreased By ▼ -0.12 (-1.59%)
FNEL 4.95 Decreased By ▼ -0.05 (-1%)
GGGL 9.18 Decreased By ▼ -0.14 (-1.5%)
GGL 16.51 Decreased By ▼ -0.19 (-1.14%)
HUMNL 6.14 Increased By ▲ 0.45 (7.91%)
KEL 2.77 Decreased By ▼ -0.02 (-0.72%)
LOTCHEM 30.81 Increased By ▲ 0.26 (0.85%)
MLCF 27.45 Decreased By ▼ -0.34 (-1.22%)
OGDC 74.27 Increased By ▲ 0.27 (0.36%)
PAEL 15.98 Decreased By ▼ -0.21 (-1.3%)
PIBTL 5.21 Decreased By ▼ -0.02 (-0.38%)
PRL 17.01 Decreased By ▼ -0.28 (-1.62%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
TELE 10.00 Decreased By ▼ -0.04 (-0.4%)
TPL 7.65 Decreased By ▼ -0.05 (-0.65%)
TPLP 19.41 Decreased By ▼ -0.36 (-1.82%)
TREET 22.72 Decreased By ▼ -0.47 (-2.03%)
TRG 146.80 Decreased By ▼ -0.55 (-0.37%)
UNITY 17.09 Decreased By ▼ -0.10 (-0.58%)
WAVES 10.33 Decreased By ▼ -0.05 (-0.48%)
WTL 1.42 Decreased By ▼ -0.04 (-2.74%)
BR100 4,330 Increased By 3.4 (0.08%)
BR30 16,296 Increased By 46.9 (0.29%)
KSE100 42,904 Increased By 23.3 (0.05%)
KSE30 15,805 Decreased By -4.6 (-0.03%)
Markets

World shares steady, US yields hover near lows ahead of fresh data

  • MSCI World index holds ground; Europe shares open higher
  • US T-bill yields edge off lows; gold down
  • Oil heads for biggest weekly drop since at least May
Published July 16, 2021
Follow us

LONDON/TOKYO: Global shares held steady while US Treasury yields hovered near multi-month lows on Friday, with markets looking to US consumer data as the next test of the Federal Reserve's dovish rates outlook.

Oil markets were on course for their biggest weekly drop since at least May as traders bet supply from OPEC producers could rise to meet an expected increase in demand as economies recover from the coronavirus pandemic.

How quickly that happens, though, is far from certain, with a resurgence in the infection rate across a number of countries, particularly in Africa and parts of Asia as the Delta variant continues to take hold.

"The spread of the more infectious Delta variant is the key emerging threat for the time being, with COVID-19 cases on the rise again at the global level and in most of the G7 economies," Deutsche Bank analyst Craig Nicol said in a note to clients.

MSCI's broadest gauge of global shares was flat in early European trading, broadly unchanged on the week, buoyed by early gains across most European markets, with Britain's FTSE 100 up 0.6%.

European shares ease

That helped counter overnight weakness in Asia where MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.4%, weighed down by a 0.8% drop each in China's blue-chip index and Taiwanese shares.

The Asian weakness was in large part driven by lacklustre earnings from TSMC, Asia's biggest firm by market capitalisation outside China, which saw its shares fall almost 4%.

Looking ahead, US stock futures pointed to a marginally higher open, up around 0.1%.

Markets continue to be supported by ultra-easy monetary policy from most of the world's leading central banks, yet are skittish given the coronavirus threat and concern policymaker support could be yanked too early if inflation fears rise.

Against that backdrop, all eyes continue to be trained on the US Federal Reserve for any signs that its dovish policy could be about to change.

This week, Federal Reserve Chair Jerome Powell reiterated that rising inflation is likely to be transitory and the US central bank would continue to support the economy.

Yet with policymakers being guided by the data, all eyes will turn later on Friday to the latest set of US retail sales data for fresh clues to the strength of the recovery, with the June print expected to show a rise after a fall in May.

Ahead of that, yields on US 10-year Treasuries edged off lows to trade up 2.3 basis points at 1.320%, albeit still near the five-month low of 1.250% touched last week.

In foreign exchange, major currencies were little changed on the day but the dollar headed for its best weekly gain in about a month. It was last up 0.1% against a basket of major peers.

"Delta variants are raging in countries where vaccination is limited. In a way, the dollar and US assets appear to be bought as a hedge against that," said Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank.

Gold on track for fourth weekly gain on dovish Fed rhetoric

Gold on the other hand reached a one-month high of $1,834.3 per ounce before pulling back to trade down 0.4% at $1,822.6, yet remains on course for a fourth straight weekly gain on the back of the dovish Fed.

Oil prices were heading for their biggest weekly drop since at least May as expectations of more supplies spooked investors, with OPEC likely to add output to meet a potential revival in demand as more countries recover from the pandemic.

US crude futures fell 22 cents to $71.43 per barrel , near last week's low of $70.76. Brent futures slipped 20 cents to $73.27 per barrel.

Comments

Comments are closed.

World shares steady, US yields hover near lows ahead of fresh data

Imran’s unresolved difficulty leaves him absolutely frustrated

Turkish companies urged to make investments

Govt plans to deregulate POL products’ market by 2027

Rice import: PM thanks Azeri President for 5-year tax holiday

PM welcomes prospects of ECO’s outreach to CARs

Suspected consignments, delinquent staff: FBR endorses DGI&I Sost’s enforcement action

Tax reforms recommendations to FBR: Supertax has successful large businesses: PBC

Qatar's migrant workers enjoy World Cup on the cheap

Energy conservation: stern measures on the cards

Payments to Google: SBP rejects allegations