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NEWS
Aug 07, 2015 12:22AM GMT
Asian shares got off on the back foot on Friday, on track for a weekly loss, following Wall Street lower as caution reigned ahead of U.S. employment data that may help determine whether the Federal Reserve could raise interest rates as early as next month.
MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was down 0.3 percent in early trading, down about 1.6 percent for the week, after U.S. equities logged solid losses in the wake of disappointing earnings results.
Japan's Nikkei stock index (N225) fell 0.2 percent as investors awaited the outcome of the Bank of Japan's two-day policy meeting later this session, at which it is widely expected to maintain its stimulus program.
The key focus for investors will came later in the global day, when economists expect the U.S. employment report to show that 223,000 jobs were created in July. On Thursday, U.S. jobless claims rose from the previous week, though the positive trend was intact.
"Today's report on the US labor market is likely to be of even greater than usual interest because of the Fed's 'data dependent' approach to policy in what remains of 2015," strategists at Barclays (LONDON:BARC) said.
The dollar index (DXY) stood at 97.810, on track for a weekly gain of about 0.5 percent, its second straight weekly rise as this week's economic data backed expectations that the U.S. central bank will deliver a rate hike next month.
The dollar was steady on the day at 124.73 yen , while the euro edged slightly higher to $1.0924 .
Sterling was not far from overnight lows hit after the Bank of England sent a dovish message, with only one member voting for an immediate rate hike versus expectations for at least twomembers. The pound was flat at $1.5511 , after falling as low as $1.5465.
In commodities trading, U.S. crude futures edged up after dropping to multi-month lows overnight after a large drop in U.S. crude inventories failed to boost prices.
U.S. crude was up about 0.2 percent at $44.76 after skidding as low as $44.20 on Thursday, not far from the six-year low of $42.05 hit in March. Brent rose 0.2 percent to $49.62 a barrel, pulling away from Thursday's six-month low.
MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) was down 0.3 percent in early trading, down about 1.6 percent for the week, after U.S. equities logged solid losses in the wake of disappointing earnings results.
Japan's Nikkei stock index (N225) fell 0.2 percent as investors awaited the outcome of the Bank of Japan's two-day policy meeting later this session, at which it is widely expected to maintain its stimulus program.
The key focus for investors will came later in the global day, when economists expect the U.S. employment report to show that 223,000 jobs were created in July. On Thursday, U.S. jobless claims rose from the previous week, though the positive trend was intact.
"Today's report on the US labor market is likely to be of even greater than usual interest because of the Fed's 'data dependent' approach to policy in what remains of 2015," strategists at Barclays (LONDON:BARC) said.
The dollar index (DXY) stood at 97.810, on track for a weekly gain of about 0.5 percent, its second straight weekly rise as this week's economic data backed expectations that the U.S. central bank will deliver a rate hike next month.
The dollar was steady on the day at 124.73 yen , while the euro edged slightly higher to $1.0924 .
Sterling was not far from overnight lows hit after the Bank of England sent a dovish message, with only one member voting for an immediate rate hike versus expectations for at least twomembers. The pound was flat at $1.5511 , after falling as low as $1.5465.
In commodities trading, U.S. crude futures edged up after dropping to multi-month lows overnight after a large drop in U.S. crude inventories failed to boost prices.
U.S. crude was up about 0.2 percent at $44.76 after skidding as low as $44.20 on Thursday, not far from the six-year low of $42.05 hit in March. Brent rose 0.2 percent to $49.62 a barrel, pulling away from Thursday's six-month low.
EUR/USD
Aug 06, 2015 09:43PM GMT
EUR/USD inched up extending modest gains from the previous session, as U.S. Treasury prices surged ahead of Friday's critical national employment situation report.
The currency pair traded in a range of 1.0875 and 1.0942 before settling at 1.0922, up 0.15% on the session. The euro has been relatively flat against the dollar over the last month, down approximately 0.6% during the last 30 days of trading. Despite the modest gains, EUR/USD has still remained below 1.10 for each of the last eight sessions.
The pair likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.1114, the high from July 31.
Investors await the release of Friday's job report by the Labor Department's Bureau of Labor Statistics for further indications on the timing of the Federal Reserve's first interest rate hike since 2006. On Wednesday, Fed governor Jerome Powell said it is not a certainty that the Federal Open Market Committee will raise rates during its September meeting, as many investors anticipate. Powell added that he will take a data-driven approach to the decision on whether to normalize monetary policy, placing particular emphasis on the strength of the labor market.
Also on Wednesday, staffers from the research institute ADP said in its monthly national employment report that private payrolls in the U.S. rose by 185,000 in July, below forecasts of a 210,000 gain and down from an increase of 237,000 a month earlier. For the month of July, analysts are predicting a consensus increase of 212,000 non-farm jobs, below the robust gains in June when non-farm payrolls rose by 223,000. Economists also expect the unemployment rate to remain in a consensus range between 5.2 and 5.4%, after falling 0.2% to 5.3% in June.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, fell 0.10% to settle at 97.88 on Thursday afternoon. One session earlier, the index surged to an intraday high of 98.33 – its highest level since April 23.
Yields on the U.S. 10-Year, meanwhile, fell four basis points to 2.227% as Treasury prices shot up in Thursday's session. It has been more than two weeks since Treasury yields have closed above 2.3%.
In London, the Bank of England's Monetary Policy Committee (MPC) voted 8-1 to keep interest rates at record-lows of 0.5%, amid a muted inflation outlook. GBP/USD fell more than 0.5% to an intraday low of 1.5467, its lowest level in more than three weeks, before rallying slightly to 1.5513.
Great Britain could decide on whether it plans to leave the EU as soon as the end of next year if prime minister David Cameron is successful in moving up a public referendum, tentatively scheduled for 2017.
The currency pair traded in a range of 1.0875 and 1.0942 before settling at 1.0922, up 0.15% on the session. The euro has been relatively flat against the dollar over the last month, down approximately 0.6% during the last 30 days of trading. Despite the modest gains, EUR/USD has still remained below 1.10 for each of the last eight sessions.
The pair likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.1114, the high from July 31.
Investors await the release of Friday's job report by the Labor Department's Bureau of Labor Statistics for further indications on the timing of the Federal Reserve's first interest rate hike since 2006. On Wednesday, Fed governor Jerome Powell said it is not a certainty that the Federal Open Market Committee will raise rates during its September meeting, as many investors anticipate. Powell added that he will take a data-driven approach to the decision on whether to normalize monetary policy, placing particular emphasis on the strength of the labor market.
Also on Wednesday, staffers from the research institute ADP said in its monthly national employment report that private payrolls in the U.S. rose by 185,000 in July, below forecasts of a 210,000 gain and down from an increase of 237,000 a month earlier. For the month of July, analysts are predicting a consensus increase of 212,000 non-farm jobs, below the robust gains in June when non-farm payrolls rose by 223,000. Economists also expect the unemployment rate to remain in a consensus range between 5.2 and 5.4%, after falling 0.2% to 5.3% in June.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, fell 0.10% to settle at 97.88 on Thursday afternoon. One session earlier, the index surged to an intraday high of 98.33 – its highest level since April 23.
Yields on the U.S. 10-Year, meanwhile, fell four basis points to 2.227% as Treasury prices shot up in Thursday's session. It has been more than two weeks since Treasury yields have closed above 2.3%.
In London, the Bank of England's Monetary Policy Committee (MPC) voted 8-1 to keep interest rates at record-lows of 0.5%, amid a muted inflation outlook. GBP/USD fell more than 0.5% to an intraday low of 1.5467, its lowest level in more than three weeks, before rallying slightly to 1.5513.
Great Britain could decide on whether it plans to leave the EU as soon as the end of next year if prime minister David Cameron is successful in moving up a public referendum, tentatively scheduled for 2017.
US
Aug 07, 2015 01:56AM GMT
U.S. Representative Eliot Engel, the top Democrat on the U.S. House
of Representatives Foreign Affairs Committee, said on Thursday he has
decided to vote to reject the nuclear deal with Iran.
In a
statement obtained by Reuters, Engel said he had raised questions about
his concerns about the deal during the negotiations and since the deal
was announced on July 1.
"The answers I've received simply
don't convince me that this deal will keep a nuclear weapon out of
Iran's hands, and may in fact strengthen Iran's position as a
destabilizing and destructive influence across the Middle East," Engel
said.
Turning back the clock: North Korea creates Pyongyang Standard Time
North Korea is creating its own time zone, moving its clocks back by 30 minutes to mark the 70th anniversary of Korea's liberation from Japanese rule, the official KCNA news agency said on Friday.
Aug 07, 2015 01:53AM GMT
North Korea is in the same time zone as rivals South Korea and Japan, nine hours ahead of Greenwich Mean Time.
The
change to what it calls "Pyongyang time" will become effective on Aug.
15 and return it to the time zone used across the Korean peninsula
before Japanese rule.
"The wicked Japanese imperialists committed
such unpardonable crimes as depriving Korea of even its standard time
while mercilessly trampling down its land with 5,000 year-long history
and culture and pursuing the unheard-of policy of obliterating the
Korean nation," KCNA said.
Korea had used 127 degrees 30 minutes
east - the longitude that KCNA said would be used for the new time zone -
when it first introduced the concept of an official time zone in 1908.
Japan
ruled the Korean peninsula from 1910 to 1945. A decree by colonial
Japan in 1912 moved the time line to where Korea Standard Time is
currently set, 135 degrees east longitude.
Suspect arrested in Louisiana officer's killing: police
Aug 06, 2015 10:43PM GMT
A suspect was arrested on Thursday afternoon in the fatal shooting of a police officer in Shreveport, Louisiana, ending a 16-hour manhunt, police said.
The suspect, Grover Cannon, 27, is accused of
fatally shooting Officer Thomas LaValley on Wednesday evening. Cannon, a
convicted felon, will face charges of first-degree murder, in addition
to earlier charges of attempted second-degree murder and a weapons
violation, Shreveport police said in a statement.
Cannon was
apprehended in Shreveport around 3 p.m. local time after a statewide
search involving multiple law enforcement agencies, Police Corporal
Marcus Hines told a news conference.
Authorities received a tip
that Cannon was hiding in a house in Shreveport, Hines said. They
arrived and found him in a garage-type building behind the home, and he
was arrested without incident, Hines said.
"It's very reassuring to get a guy of this caliber off the street," Hines said.
On
Wednesday night, LaValley responded to a report that a man, possibly
armed, was threatening a neighbor in her home in Shreveport, a city of
about 200,000 people 200 miles east of Dallas, Shreveport Police Chief
Willie Shaw said. LaValley then got into a confrontation with Cannon,
who had an outstanding arrest warrant, and the officer was shot multiple
times in the upper body, Shaw said.
He was wearing his uniform and body armor when he was shot, Shreveport police said.
The FBI and the U.S. Marshals Service had offered a $25,000 reward for information leading to his capture.
LaValley
had worked in the Shreveport Police Department for four years after
graduating at the top of his training class, Shaw said.
"He was doing what he loved," Shaw said. "He did not hesitate to confront a bad person."
LaValley was the 29th Shreveport police officer killed in the line of duty since 1898, according to the department's website.
Before joining the department in 2011, he worked as a cameraman at the local broadcaster KTBS, the TV station reported.
The
shooting comes at a time of heightened tensions between law enforcement
and minority groups. Several unarmed black men have been killed over
the past year in confrontations with police. Numerous officers have been
killed in the line of duty.
Cannon's arrest came on the same day
that mourners attended funeral services in Tennessee for Officer Sean
Bolton, killed in Memphis on Saturday. The suspect in that case
surrendered to federal marshals on Monday.