Aust dollar firms on US data

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The Australian dollar is firmer as disappointing American retail sales figures make traders question the timing of an expected US interest rate rise.

At 12.00opm (AEDT) on Friday, the local currency was trading at US76.91c, up from US76.20c on Thursday.

The exchange rate rose above US77c during the early hours of Friday morning after official data showed that US retail sales fell 0.6 per cent in February.

The result, which went against market expectations of a 0.3 per cent rise, is prompting traders to question an whether there will be a mid-year Federal Reserve interest rate rise.

The Fed's Federal Open Market Committee meets next week, with traders waiting to see if it keeps the word "patient" in regards to a rate rise in its following statement.

Meanwhile, the bond market firmed on the weak US retail sales figures.

At 12.00pm (AEDT), the March 2015 10-year bond futures contract was trading at 97.498 (implying a yield of 2.502 per cent), down from 97.523 (2.477 per cent) on Thursday.

The March 2015 three-year bond futures contract was at 98.120 (1.880 per cent), down from 98.160 (1.840 per cent).

Source: Businness Spectator

Oil Set for Fourth Weekly Decline as Global Glut Seen Expanding

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Oil headed for the longest stretch of weekly declines in almost two months amid signs that a global supply glut will expand.

Futures were little changed in New York after falling 2.3 percent on Thursday to a six-week low. Iran is in talks with buyers in Asia to sell more crude if sanctions on the Middle Eastern country are lifted, according to four people with knowledge of the discussions. U.S. drilling executives were in Washington this week to persuade White House officials and lawmakers to end the 40-year ban on American oil exports.

West Texas Intermediate for April delivery was at $47.16 a barrel in electronic trading on the New York Mercantile Exchange, up 11 cents, at 12:20 p.m. Sydney time. The contract dropped $1.12 to $47.05 on Thursday, the lowest close since Jan. 29. The volume of all futures traded was about 63 percent below the 100-day average. Prices are down 4.9 percent this week.

Source: Bloomberg

China’s Stock-Index Futures Little Changed After Weekly Advance

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China’s stock-index futures were little changed as the Shanghai Composite Index headed for the biggest weekly gain in a month.

Futures on the CSI 300 Index expiring in March, the most active contract, fell less than 0.1 percent to 3,614.60 as of 9:18 a.m. local time. SAIC Motor Corp., China’s largest carmaker, may move after the company signed an agreement with Alibaba Group Holding Ltd. to set up a fund to promote the development of Internet-enabled cars.

The Shanghai Composite Index climbed 1.8 percent to 3,349.32 on Thursday and the CSI 300 Index rose 1.9 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 1.3 percent. The Hang Seng Index gained 0.3 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 0.2 percent in New York.

Economic data released this week showed growth in aggregate finance and money supply exceeded estimates, while industrial output, retail sales and fixed-asset investment all trailed projections.

Margin traders increased holdings of shares purchased with borrowed money for a twelfth day on Thursday, with the outstanding balance of margin debt on the Shanghai Stock Exchange rising by 1.6 percent to a record 878.1 billion yuan.

Source: Bloomberg

Asian Stocks Advance as U.S. Retail Sales Ease Rate-Rise Concern

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Asian stocks rose, following a rebound in U.S. shares, after an unexpected drop in American retail sales strengthened the case for keeping interest rates lower for longer in the world’s largest economy.

The MSCI Asia Pacific Index advanced 0.1 percent to 144 as of 9:01 a.m. in Tokyo, paring this week’s decline to 1 percent. Rate bets were tempered Thursday after retail sales slipped for a third straight month. The Standard & Poor’s 500 Index jumped 1.3 percent after faltering earlier this week as a better-than-forecast U.S. jobs report raised concern the Federal Reserve will increase rates sooner than some expected.

Japan’s Topix index added 0.3 percent. South Korea’s Kospi index advanced 0.9 percent and Australia’s S&P/ASX 200 Index slid 0.3 percent. New Zealand’s NZX 50 Index gained 0.3 percent.

Futures contracts on Hong Kong’s Hang Seng Index rose 0.3 percent, while contracts on the Hang Seng China Enterprises Index of mainland firms listed in the city advanced 0.5 percent. Singapore-traded futures on the FTSE China A50 Index climbed 0.6 percent.

Source : Bloomberg

Japan’s Topix Heads for Best Weekly Winning Streak in Two Years

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Japanese stocks rose, with the Topix index heading for its longest weekly winning streak since February 2013, after a drop in U.S. retail sales boosted speculation the Federal Reserve may delay raising interest rates.

The Topix added 0.2 percent to 1,550.27 as of 9:01 a.m. in Tokyo, heading for an eight-week gain. The Nikkei 225 Stock Average climbed 0.4 percent to 19,062.23, set to extend a 15-year high. U.S. stocks rebounded from a two-day selloff after the unexpected decline in retail sales.

Futures on the Standard & Poor’s 500 Index added 0.1 percent after the underlying gauge jumped 1.3 percent Thursday, the most in a month.

Japanese data on February industrial production is expected at 1:30 p.m. in Tokyo.

Source: Boomberg