Pound Jumps as Election Exit Poll Shows Tories May Retain Power

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The pound jumped as an official exit poll showed that the Conservative Party will get the most seats in the U.K.’s general election, reducing the prospect of protracted negotiations over the formation of the next government.

Sterling strengthened at least 0.9 percent versus all of its 16 major counterparts as the survey of voters indicated Tory leader David Cameron is set to lead the largest party, just short of a majority, in a hung Parliament. Its rally versus the dollar was the largest in almost seven weeks.

In the run-up to the election, the Conservatives focused on their economic credentials, with polls showing them to be the the most-trusted party on that subject. Even so, some investors have voiced concern that the party’s pledge of a referendum on Britain’s membership of the European Union may undermine investment and hurt the pound.

Results for individual seats will be announced gradually through the night in the U.K.

The British currency rallied 1.1 percent to $1.5414 at 11:16 p.m. London time, the biggest jump since March 20. It appreciated 1.2 percent to 72.99 pence per euro, taking its gain versus the 19-nation shared currency this year to 6.4 percent.

Source : Bloomberg

Gold Erases 2015 Gain as Jobless Claims Boost U.S. Rate Concerns

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Gold futures fell, erasing this year’s gain, on speculation that an improving U.S. labor market will boost the case for the Federal Reserve to raise U.S. interest rates.

Fewer Americans than forecast  filed applications for unemployment benefits last week, dropping the average in the past month to the lowest in 15 years, government data shosed on Thursday. An expanding economy gives policy makers more to room to raise rates, which curb gold’s appeal because the metal generally only offers returns through price gains.

Gold futures for June delivery fell 0.7 percent to settle at $1,182.20 an ounce at 1:49 p.m. on the Comex in New York, the biggest drop for a most-active contract since April 30. The price has dropped 0.2 percent this year and is down 9.6 percent from the 2015 high of $1,307.80 on Jan. 22.

Source: Bloomberg

Japan Stocks Rebound From One-Month Low Ahead of U.S. Jobs Data

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Japanese stocks rose, rebounding from a one-month low, after U.S. equities advanced ahead of a monthly employment report.

The Topix index climbed 0.2 percent to 1,577.60 as of 9:02 a.m. in Tokyo, headed for a loss of 0.5 percent in a shortened week due to holidays. Two stocks rose for each that fell. The Nikkei 225 Stock Average added 0.2 percent to 19,331.63. The yen traded at 119.73 per dollar after weakening Thursday for the first time in four days.

A report Friday in Washington will show U.S. employers probably added 228,000 workers to nonfarm payrolls in April, according to economists surveyed by Bloomberg. Investors are waiting to see if last month’s reading of 126,000 was a temporary bout of weakness or the signs of a longer, negative trend.

Source : Bloomberg

Asian Stocks Fall Before U.S. Jobs as Energy Shares Lead Decline

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Asian stocks fell, with the regional benchmark index heading for a two-week decline, as investors awaited U.S. labor data. Energy companies led losses.

The MSCI Asia Pacific Index slid 0.2 percent to 150.14 as of 9:07 a.m. in Tokyo, with all 10 industry groups retreating. The measure is poised for a 1.8 percent slide this week.

Japan’s Topix index added 0.1 percent. Australia’s S&P/ASX 200 Index gained 0.2 percent, while New Zealand’s NZX 50 Index increased 0.3 percent. South Korea’s Kospi index lost 0.4 percent. Markets in Hong Kong and China are yet to open.

E-mini futures on the Standard & Poor’s 500 Index were little changed. The underlying equity measure added 0.4 percent on Thursday in New York as Yahoo! Inc. led a rebound in technology shares.

U.S. employers probably added 228,000 workers to nonfarm payrolls in April, after a 126,000 increase in March, according to economists surveyed by Bloomberg. Federal Reserve policy makers are monitoring labor data to determine the timing of higher borrowing costs after economic growth slowed in the first quarter for reasons the central bank called “transitory.”

David Cameron is on course to remain prime minister at the head of a minority government after the U.K. general election, an exit poll indicated. The Conservatives were forecast to win 316 of Parliament’s 650 seats, with the Labour Party trailing on 239 seats, according to the survey of voters published as polling stations closed at 10 p.m. Thursday.

Source : Bloomberg

U.S. Equities Advance Amid Tech Shares Rally Before Jobs Data

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U.S. stocks advanced, after the Standard & Poor’s 500 Index fell to its lowest in a month, as Yahoo! Inc. led a rebound in technology shares before Friday’s labor report.

The S&P 500 added 0.4 percent to 2,088.04 at 4 p.m. in New York, near its average price during the past 50 days. The government will release April jobs data Friday before U.S. markets open.

U.S. stocks fell yesterday, dragged lower after Federal Reserve Chair Janet Yellen warned of high equity market valuations and after a private report that showed hiring slowed.

Stocks bounced back after a two-day selloff that sent the number of equities trading above their 50-day moving average to the lowest level in three months, data compiled by Bloomberg show. At yesterday’s close, 200 members in the S&P 500 traded above the threshold, which is viewed by analysts to gauge a security’s momentum. That’s the lowest reading since Jan. 3