Yen Rebound Hits Japan Stock Futures as Syria Angst Buoys Havens

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Japanese index futures signaled losses amid a revival in the yen as a quarrel between Turkey and Russia over the downing of a warplane stoked concern over geopolitical tensions, fueling demand for haven assets.

Japan’s currency held gains against most major peers Wednesday after Russian President Vladimir Putin said the shooting down of his country’s plane by Turkish forces near their border with northeastern Syria would have “serious consequences.” Nikkei 225 Stock Average futures fell with Australian and New Zealand shares, even after U.S. stocks erased their declines to end last session up 0.1 percent. Gold maintained Tuesday’s gains, while U.S. oil was close to $43 a barrel amid the renewed focus on Middle East tensions.

Mounting tensions in the Middle East have helped crude recover from its lowest settlement since August.

While European stocks sold off on the warplane news, the impact was more limited in the U.S. as political analysts in Russia and Europe said a major escalation seems unlikely given the risks associated with any conflict between Russia and Turkey, a NATO member. The downing of the plane comes as Brussels remains on the highest-level terror alert amid what officials have called credible terrorist threats and after the U.S. State Department issued a global warning for Americans. Anxiety over a divergence in U.S. and global central bank policy as soon as next month is also keeping investors on edge.

Nikkei 225 futures were bid for 19,890 in the Osaka pre-market, down from 19,960 at their close in Japan Tuesday as the yen traded little changed at 122.52 per dollar, following last session’s 0.3 percent advance. Australia’s S&P/ASX 200 Index was down 0.2 percent as of 8:53 am. in Tokyo, and the S&P/NZX 50 Index lost the same amount from a record high in Wellington.

Source : Bloomberg

Dollar Falls for First Time in 3 Days on Consumer Sentiment Drop

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The dollar fell for the first time in three days after data showed consumer confidence unexpectedly declined in November to the lowest level in more than a year.

The U.S. currency weakened against most of its major peers as investors look past the Thanksgiving holiday week for fresh evidence that the Federal Reserve is ready to raise interest rates in December. Fed Chair Janet Yellen will speak Dec. 2, before a European Central Bank meeting and U.S. payroll report on the same week. The yen rose after Turkey shot down a Russian warplane near the Syrian border, boosting demand for the safest assets.

The Bloomberg Dollar Spot Index, which tracks the currency versus 10 major peers, fell 0.3 percent to 1,230.41 as of 3:33 p.m. in New York. The gauge has rallied 1.7 percent in November, set for the biggest monthly advance since July.

Source: Bloomberg

Topix Falls First Time in Six Days as Syria Tension Boosts Yen

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Japanese stocks fell as growing military tension between Turkey and Russia drove the yen higher, damping the earnings outlook for exporters. Airlines led losses, while commodity producers gained.

The Topix index dropped 0.5 percent to 1,597.80 as of 9:01 a.m. in Tokyo, headed for its first loss in more than a week. The Nikkei 225 Stock Average lost 0.5 percent to 19,833.35, falling from a three-month high. The yen traded at 122.50 per dollar after strengthening 0.3 percent Tuesday following Turkey’s downing of a Russian fighter jet that it claims was violating its airspace.

Turkey shot down the plane near its border with northwestern Syria early Tuesday, drawing an angry rebuke from Russian President Vladimir Putin and marking the first direct clash between foreign powers embroiled in the Syrian civil war. Oil prices jumped and the yen climbed.

Source : Bloomberg

U.S. Stocks Near Two-Week High as Crude Gains on Syria Tension

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Stocks recovered early losses, while Treasuries gave up their gains amid signs that Russia’s response to Turkey’s downing of a warplane near its border with Syria won’t include the military.

The Standard & Poor’s 500 Index closed up 0.1 percent near its highest level since Nov. 6 after Russian President Vladimir Putin stopped short of threatening a military response to the incident. European stocks slipped as the first clash of foreign powers embroiled in the Syrian civil war sparked concern tensions will escalate. Gold gained for the first time in three sessions, as oil rallied with copper following a base metals rout. The dollar retreated.

Financial-market moves in response to the downed warplane were contained as political analysts in Russia and Europe said a major escalation seems unlikely given the risks associated with any conflict between Russia and a NATO member. The incident comes as Brussels remains on the highest-level terror alert amid what officials have called credible terrorist threats and after the U.S. State Department issued a global alert for Americans.

The geopolitical tensions somewhat overshadowed U.S. data Tuesday that indicated the economy expanded at a faster pace in the third quarter than previously reported, fueling bets that the Federal Reserve will raise key interest rates next month. Treasuries pared gains as the odds for an increase at the Fed’s December meeting rose to 74 percent.

The S&P 500 rose to 2,089.14 by 4 p.m. in New York, after falling as much as 0.8 percent earlier in the session. The index is coming off its best week of 2015 and has rallied 12 percent from its August low, though gains have stalled about 2 percent from the May record.

Source: Bloomberg

European Shares Fall as Tension Grows After Russian Jet Downed

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European shares dropped to one-week lows on Tuesday as mounting geopolitical tensions following the downing of a Russian warplane near the Syrian border pushed investors out of risky assets like equities.

Travel stocks were among the hardest hit following a U.S. travel warning, while sentiment was also depressed by disappointing updates from companies such as Zodiac Aerospace .

The pan-European FTSEurofirst 300 index closed down 1.3 percent after falling by as much as 2 percent. Last week the index touched a three-month high on ECB monetary stimulus hopes.

The STOXX Europe 600 Travel and Leisure index, was the top sectoral decliner in Europe. Its 2.3 percent fall came after the U.S. State Department issued a global alert for Americans planning to travel following deadly attacks in France and Mali, citing "increased terrorist threats".

Source: Reuters