Pound Weakens as BOE Slips Further Behind Fed in Rate-Move Race

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The pound dropped the most in two weeks against the dollar as investors added to bets the Bank of England will lag behind the Federal Reserve when it comes to raising interest rates.

Fewer BOE policy makers voted to increase interest rates than had been predicted by economists surveyed by Bloomberg, fueling speculation U.K. rates will stay lower for longer. The 8-to-1 breakdown in favor of holding rates, released as part of a slew of BOE data dubbed “Super Thursday,” came a day before a U.S. jobs report, hotly anticipated by investors seeking clues on the timing of the Fed’s first rate increase since 2006.

The pound fell 0.6 percent to $1.5514 as of 2:49 p.m. in New York, the biggest decline since July 23. Sterling weakened 0.7 percent to 70.39 pence per euro. It touched 69.36 pence on July 17, the strongest level since 2007.

BOE Governor Mark Carney said at a press conference in London that officials are looking carefully at the impact the strength of sterling on inflation and consider it in their decisions.

Source: Bloomberg

Gold Edges Up as Greenback Retreats, Traders Await U.S. Jobs Data

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Gold edged higher on Thursday, supported by the retreating U.S. dollar and a tumble in global equities as traders awaited U.S. employment data seen as key to determining when the Federal Reserve may raise interest hikes.

U.S. non-farm payrolls data are due on Friday and economists polled by Reuters predict employment in July increased at the same pace as June's 223,000 rise.

Spot gold was up 0.5 percent at $1,090.11 an ounce by 1759 GMT (1:59 p.m. EST). The metal breached important technical support at $1,100 after a deep rout in late July pushed it as low as $1,077, its weakest since February 2010.

U.S. gold for December delivery rose 0.4 percent to settle at $1,090.10 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 21.47 million ounces on Wednesday, the lowest since September 2008.

In other metals, spot palladium gained 1.1 percent to $597.25 an ounce, as platinum rose 0.4 percent to $951 per ounce, not far from a 6-1/2 year low hit earlier in the week. Silver was up 1 percent at $14.67 an ounce.

Source : Reuters

Asian Stocks Follow U.S. Shares Lower Before U.S. Jobs, BOJ

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Asian stocks fell, following a slide in U.S. equities, ahead of a U.S. jobs report that may cement prospects that the Federal Reserve will raise interest rates as soon as next month.

The MSCI Asia Pacific Index declined 0.2 percent to 140.55 as of 9:01 a.m. in Tokyo. Japan’s Topix index slipped 0.2 percent ahead of a monetary policy decision by the Bank of Japan later today.

The Asia Pacific gauge is heading for a third week of decline before the U.S. government’s payrolls report and amid data Thursday that showed jobless claims near a four-decade low. Traders are pricing in a 48 percent probability that the Fed will raise interest rates in September.

E-mini futures on the Standard & Poor’s 500 Index fell 0.1 percent after the underlying gauge on Thursday slid 0.8 percent.

South Korea’s Kospi index declined 0.3 percent and New Zealand’s NZX 50 Index slipped 0.4 percent. Australia’s S&P/ASX 200 Index sank 0.9 percent. Markets in Singapore are closed for a holiday.

Futures on Hong Kong’s Hang Seng Index declined 0.5 percent and contracts on the Hang Seng China Enterprises Index of mainland firms listed in the city slipped 0.5 percent in most recent trading.

In Japan, sixteen of 37 economists forecast the central bank won’t expand monetary stimulus at all, the most popular answer in the survey. Twelve expect the bank to add stimulus at its meeting on Oct. 30, unchanged from last month.

Source: Bloomberg

Japanese Stocks Fall as Investors Weigh Earnings, BOJ Decision

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Japanese stocks fell, following U.S. equities lower and paring a second weekly gain, as investors weigh earnings and await a central bank monetary policy decision.

The Topix index lost 0.2 percent to 1,669.72 as of 9:01 a.m. in Tokyo, heading for a weekly advance of 0.6 percent. The Nikkei 225 Stock Average slipped 0.3 percent to 20,609.44. The Bank of Japan is forecast to maintain its unprecedented monetary stimulus on Friday afternoon.

More than 250 firms on the Topix index report earnings on Friday. Of the companies that have posted quarterly results this season and for which estimates are available, 64 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg.

E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying measure fell 0.8 percent on Thursday in New York as biotechnology shares tumbled while media companies sold off on disappointing results from Viacom Inc. and Twenty-First Century Fox Inc. The Stoxx Europe 600 Index also lost 0.8 percent

Along with corporate earnings, investors are watching U.S. economic reports to gauge when the Federal Reserve will increase interest rates. Traders are pricing in a 48 percent probability that the Fed will raise rates in September.

A report Thursday showed jobless claims rose by 3,000 to 270,000, hovering near four-decade lows as employers hold on to more workers in response to increased demand following a slump in early 2015. The government’s payrolls report on Friday is projected to show employers took on 225,000 workers last month, while the jobless rate held at a seven-year low of 5.3 percent.

Source : Bloomberg

U.S. Stocks Fall as Biotech, Media Shares Tumble Amid Earnings

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The Standard & Poor’s 500 Index declined for the fourth time in five sessions, as biotechnology shares tumbled while media companies sold off on disappointing results from Viacom Inc. and Twenty-First Century Fox Inc.

The S&P 500 lost 0.8 percent to 2,083.79 at 4 p.m. in New York, falling below its average prices during the past 50 and 100 days.

Media shares were battered for a second day, with quarterly earnings at CBS and Fox marked by shrinking U.S. ad sales and profits propped up by stock buybacks. Viacom, owner of MTV, Nickelodeon and Comedy Central, posted a third-quarter revenue decline that was wider than analysts had forecast.

About 85 percent of S&P 500 members have released earnings figures, with three-quarters beating profit estimates and half topping sales projections. Analysts now call for a 2.8 percent drop in second-quarter earnings, shallower than July 10 estimates for a 6.4 percent fall.

Source: Bloomberg