Dollar Holds Advance on U.S. Hiring Figures, Fed Beige Book

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The dollar held gains against its peers after recovering from losses earlier in the week, as solid employment data and a Federal Reserve report bolstered optimism the U.S. economy will weather slowing growth in China.

The greenback rebounded Wednesday from two-day losses against the euro and yen after a private report showed hiring in the U.S. was mostly on pace in August, before the Labor Department releases its employment figures Friday. The Fed’s Beige Book showed the economy expanded across most U.S. regions. Australia’s currency extended a rebound from a six-year low before the nation releases figures for trade and retail sales on Thursday.

The Bloomberg Dollar Spot Index, which tracks the currency versus 10 major peers, was at 1,210.27 as of 8:50 a.m. in Tokyo from 1,209.05 in New York, where it rose 0.3 percent, snapping two days of declines. The dollar was little changed at $1.1221 per euro, and gained 0.3 percent to 120.65 yen.

Australia’s currency advanced 0.1 percent to 70.44 U.S. cents from Wednesday, when it fell below 70 cents for the first time since April 2009.

Private-sector hiring increased by 190,000 in August, up from 177,000 in July, the ADP Research Institute in Roseland, New Jersey reported Wednesday. Employers added 217,000 workers, more than 200,000 for a fourth month, according to economists surveyed by Bloomberg before the government releases its data this week.

The U.S. economy expanded across most regions and industries in July and August, the Fed’s Beige Book report showed Wednesday, as tighter labor markets boosted wages for some workers.

Source : Bloomberg

Gold Drops as ADP Jobs Data Revives Rate Concerns

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Gold headed for its biggest loss in a week as a private report signaling U.S. employment growth added to speculation that the Federal Reserve is getting closer to raising interest rates.

Firms added more jobs in August than a month earlier, the ADP Research Institute said on Wednesday. Traders will be focused on the government payrolls report due Friday for more clues on whether growth is strong enough to sustain higher rates. Stubbornly low inflation along with the prospect of tighter U.S. monetary policy has kept a lid on gold, which doesn’t pay interest or offer returns, unlike competing assets.

Global holdings in exchange-traded products backed by gold fell Tuesday by the most since July. While bullion prices got a lift in August amid a Chinese equity rout, signs of resilient U.S. expansion since then have increased speculation that Fed officials will follow through with their plans for tighter monetary policy this year.

Gold futures for December delivery dropped 0.5 percent to $1,133.70 an ounce at 11:23 a.m. on the Comex in New York, headed for the biggest decline since Aug. 26.

Assets in ETPs dropped by 6.9 metric tons on Tuesday to 1,522.7 tons, the biggest drop decline since July 31. The holdings have shrunk 12 percent in the past 12 months as some investors lost their faith in the metal as a store of value.

Source: Bloomberg

Asia Stocks Rise, Following U.S. Rally, With China Markets Shut

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Asian stocks rose, following a rebound in U.S. shares, with markets in China and Hong Kong closed for a holiday.

The MSCI Asia Pacific Index gained 0.4 percent to 126.45 as of 9:01 a.m. in Tokyo. Chinese shares closed lower on the last trading day of this week as investors assessed the level of state support before a major military parade on Thursday. Mainland markets are closed Thursday and Friday to commemorate the end of World War II.

E-mini futures on the Standard & Poor’s 500 Index added 0.3 percent following a 1.8 percent gain on the underlying index on Wednesday. The U.S. equities gauge slumped 6.3 percent last month as China’s currency devaluation spurred concern over global growth, erasing more than $5.7 trillion in equity market values worldwide, while volatility surged the most on record.

South Korea’s Kospi index rose 0.7 percent and Australia’s S&P/ASX 200 Index gained 0.5 percent. New Zealand’s NZX 50 Index advanced 0.7 percent.

Japan Stocks Rise Amid Global Calm as China Closes for Holiday

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Japanese stocks rose, with the Topix index headed for its first gain this week, after calm returned to global markets as China halted trading for a two-day holiday. Energy explorers led gains.

The Topix gained 1.4 percent to 1,486.33 as of 9:02 a.m. in Tokyo as all of its 33 industry groups rose. The Nikkei 225 Stock Average added 1.4 percent to 18,345.71. The yen traded at 120.57 per dollar after weakening 0.8 percent on Wednesday. The rout in global stocks let up Wednesday, with U.S. equities surging in late trading to halt a two-day slump after Chinese shares ended their last day of trading this week with the smallest loss since mid-August.

Futures on the Standard & Poor’s 500 Index added 0.3 percent after the underlying measure rose 1.8 percent on Wednesday. The Stoxx Europe 600 Index added 0.3 percent.

A rout in global equities last month, sparked by China’s devaluation of its currency, erased more than $5.7 trillion from the value of global shares amid growing concern that the world’s second-biggest economy may be in worse shape than analysts had estimated.

Source : Bloomberg

U.S. Stocks Climb Amid Global Respite After Two-Day Selloff

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U.S. stocks rallied, after the Standard & Poor’s 500 Index posted one of its steepest drops this year, amid a respite from a global equities selloff.

A surge in the final minutes pushed the S&P 500 up 1.8 percent to 1,948.87 at 4 p.m. in New York, closing at the session high after the gauge fell 3.8 percent over the previous two sessions. Equities jumped in early trading and then trimmed their gains by more than half before an afternoon rebound along with oil prices.

The benchmark equity gauge’s 3 percent decline on Tuesday -- its third-biggest of 2015 -- marked a sour start to what has historically been the worst month of the year. The S&P 500 falls 1.1 percent on average in September, according to data compiled by Bloomberg going back to 1927.

Another troubling sign is that futures on Chicago Board Options Exchange Volatility Index have climbed, showing traders predict turbulent markets will endure. The gauge known as the VIX fell 11 percent Wednesday to 27.93, after a record monthly jump in August,up 135 percent.

The S&P 500 slumped 6.3 percent last month as China’s currency devaluation spurred concern over global growth, erasing more than $5.7 trillion in equity market values worldwide, while volatility surged the most on record. The equity index entered a correction last week, only to then rally more than 6 percent over two days. It closed Wednesday 9.1 percent below its all-time high set in May.

Source: Bloomberg