Dow futures in the red, Asian markets open mix, oil tops $80 a barrel

view original post

Dow futures in the red, Asian markets open mix, oil tops $80 a barrel  

Key Highlights

  • US jobs report fell short as September added only 194,000 jobs versus an estimated 500,000. All 3 benchmark indices closed Friday in the red, however, gained on a weekly basis
  •   European markets also closed lower after a volatile week. Major Asian indices though, closed in the green except the Kospi. The SGX Nifty Futures which closed Friday in the green, has started the week in the green as well.
  •  Oil has risen to beyond USD 80 a barrel with Brent above USD 83 a barrel. The U.S. 10 year yields are also higher at 1.612% despite the poor job numbers for September.

Mumbai: The US jobs report fell short – with only 194,000 jobs added in September vs the Dow Jones estimate of 500,000. This new development may have the Federal Reserve considering the all-important question on taper. All US indices ended the week in the red, however, all 3 benchmark indices were in the green on a weekly basis. The Dow closed almost flat, down 3 basis points, on Friday, breaking a 3 week streak of losses to a weekly gain of 0.62%. S&P 500 was down 0.19%, but up 0.79% for the week. The index has now seen weekly gains in 2 out of the last 5 weeks. Nasdaq was down 0.51%, up 9 basis points for the week. The Dow Futures were down 0.25% in early trade today. 

European markets also closed lower after volatile week last week. The DAX was down 0.29%. the FTSE100 was the only index which gained, closed 0.25% higher on Friday. The CAC40 was down 0.61% and the Stoxx600 was down 0.28%. 

The Nikkei gained 1.34% Friday while the Shanghai was up 0.67%. The Hang Seng rose 0.55% to close the week and the ASX200 was up 0.87% in trade on Friday. The Kospi closed 11 basis points lower on Friday. The Nikkei is up 0.95% in early trade today. The ASX200 is down 0.68% in early trade this Monday. The Kospi continues lower, down 0.11% in early trade today. The SGX Nifty Futures which closed 0.58% higher in trade on Friday, has risen 0.29% in early trade today. 

The London Metal Index (USD) was up 1.49% on Friday. The index was up 3.72% last week. Oil has topped USD 80 a barrel – highest since 2014 and is sitting at USD 80.14 a barrel in early trade today with Brent at USD 83.05 a barrel. Gold is at USD 1756 an ounce despite the US jobs report miss. 

Dollar index was down 0.16% on Friday and has started the week flat, up 1 basis point in early trade today. The US 10 year treasury yields are at 1.612% despite poor September job numbers. Bitcoin is up 1% in early trade to start the week above the USD 55k mark.