Asia set to open mixed; bond yields, Aussie dollar gain overnight

Jay Anderson
July 16, 2017

Agricultural commodities have been rallying, and analysts expect those increases to show up in food prices.

"A weak U.S. CPI print could push the pair into $0.78 and we start considering the implication of a potential break above the 2016 high of $0.7835", IG Chief Market Strategist Chris Weston said in a note, citing "general ill-will" towards holding the dollar and outperformance of emerging markets as drivers of the Aussie dollar.

Stocks to watch: J.P. Morgan (JPM) beat expectations on both revenue and profit, but shares gave up an early initial gain to turn 1% lower. The FTSE 100 however while putting in some gains, continues to display tentative trading and it is down around 1 percent the past month. The Fed's dual mandate is full employment and steady prices, and while the job market has been strong, inflation has been the laggard.

On a month-on-month basis, the core CPI is expected to rise 0.2 percent after a 0.1 percent gain the previous month.

Markets took Yellen's comments on inflation and on the Fed's neutral rate to be dovish for interest rates.

"Market participants are increasingly convinced that the central bank's "dot plot" rate forecast will be adjusted downward, with the yield curve coming under pressure as investors fade the likelihood of rapid monetary tightening", Schamotta said.

The data indicates "a little bit of concern about how the Fed is going to normalize policy", Learner said.

Upbeat economic data had helped the greenback remain steady, withfigures showing the number of Americans filing for unemployment benefits fell last week for the first time in a month and producer prices unexpectedly rose in June, likely keeping the Fed on track for a third rate increase this year.

Tejaswi Yadav skips event attended by Nitish Kumar
JD (U) spokesperson Neeraj Kumar referred to the allegations by the opposition BJP that Lalu's family members had acquired benami properties at various places in the country.

The dollar pulled up 0.2% to ¥113,42 on Friday, narrowing losses for the week to 0.4%.

Technology shares moved north on Wednesday, for the fourth successive session.

Among automakers, Toyota is edging up less than 0.1 percent and Honda is down 0.2 percent. The pan-European FTSEurofirst 300 index of leading shares rebounded to rise 0.10 percent and close at 1520.41.

Down Under, the S&P/ASX 200 rose 0.52 percent.

For the week, the main equity indexes are on track to post solid gains, led by a 2.5% rise for the Nasdaq on the week, a 1.3% gain for the S&P 500 and a 1% climb for the Dow. Major banks, including JPMorgan Chase, Citigroup and Wells Fargo, will report results on Friday.

Brent crude futures, the worldwide benchmark for oil, were up 35 cents at $48.77 per barrel.

Gold prices have are down $2 or 0.2% overnight trading at $1,218 an ounce.WTI Crude Oil prices are up 0.7% trading at $46.02 a barrel.

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