Aust dollar hits three-month high

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The Australian dollar is refusing to roll over, soaring to a three-month high on the back of disappointing US economic figures.

At 7.00am (AEDT) on Friday, the local unit was trading at US73.56c, up from US73.17c on Thursday.

The Aussie surged to US73.72c overnight, supported by a weaker greenback across the board.

US factory orders and durable goods disappointed, ANZ senior manager FX Sam Tuck said.

And, despite an improvement in the headline non-manufacturing ISM, markets focused on the employment sub-component, which dropped into contractionary territory.

“(The Aussie is) decidedly up and heading higher,” he said.

“But that’s driven primarily by US dollar flows, and tonight we’ve got US payrolls which could change things around quite dramatically.”

The US employment report is tipped to still be a source of strength for the economy but, Mr Tuck said, he’ll pay particularly close attention to wages growth.

Source: businessspectator

Oil Ends Near 8-Week High After Drop in U.S. Crude Production

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Oil ended near the highest closing level in eight weeks in New York as a jump in U.S. crude inventories was countered by a decline in the nation’s oil production.

Futures were little changed. Output fell for a sixth week to 9.08 million barrels a day, the lowest level since November 2014, according to the Energy Information Administration. Crude inventories rose, keeping supplies at the highest in more than eight decades. OPEC members will meet with Russia and other producers in Moscow on March 20 to resume talks on an output cap, Nigeria’s oil minister said.

Oil is still down about 6 percent this year on speculation a global glut will be prolonged amid brimming U.S. stockpiles and the outlook for increased exports from Iran after the removal of sanctions. Exxon Mobil Corp. scaled back production targets and said drilling budgets will continue to drop through the end of next year as the oil market shows no signs of a significant recovery.

West Texas Intermediate for April delivery fell 9 cents to close at $34.57 a barrel on the New York Mercantile Exchange. The contract rose to $34.66 Wednesday, the highest settlement since Jan. 5. Total volume traded was about 16 percent above the 100-day average.

Brent for May settlement gained 14 cents to $37.07 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude was at a premium of 74 cents to WTI for May.

Source: Bloomberg

Hong Kong benchmark index pulls back from 7-week highs on profit-taking (Review)

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investors took profit from a rebound that had been fuelled by strength in global and mainland markets.

The Hang Seng index fell 0.3 percent, to 19,941.76, but the China Enterprises Index gained 0.2 percent, to 8,390.79 points.

Most sectors fell, but energy and resource shares, which had led the recent bounce, remained firm.

Source : Reuters

U.S. Stocks Rise to Build on 8-Week High Before Payrolls Report

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U.S. stocks rose, led by gains in energy shares to extend a three-week rally before Friday’s payrolls report that may provide a clearer picture on the strength of the economy and path for interest rates.

Energy producers in the Standard & Poor’s 500 Index erased 2016 declines as a rally in the group helped equities shake off earlier weakness for a second day. Banks also gained momentum in the afternoon, rising for the fifth time in six days. Health-care and technology shares struggled, with Microsoft Corp. losing 1.1 percent. Kroger Co. sank 7 percent after the grocer forecast slower growth this year.

The S&P 500 rose 0.4 percent to 1,993.39 at 4 p.m. in New York, wiping out a drop of as much as 0.5 percent to hold at an eight-week high.

Investors are watching economic reports as central-bank meetings approach, with the government’s monthly nonfarm payroll figures looming large tomorrow. Data today showed growth in service industries slowed for a fourth straight month in February. A separate gauge showed factory orders in January rose less than expected, while the number of claims for unemployment benefits remained consistent with a steady labor market.

The S&P 500 has jumped 9 percent from a 22-month low reached in February, though the gains have come amid the weakest volume in 2016, signaling a lack of conviction in the rally. The benchmark has trimmed its 2016 decline to 2.5 percent as banks, consumer and technology companies have bolstered the comeback, and it’s on track for a third straight weekly gain of more than 1.5 percent for the first time since 2009.

Source: Bloomberg

U.S. Stocks Slip From Eight-Week High Amid Data Before Payrolls

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U.S. stocks slipped, with a three-week equity rally leveling off amid mixed data before Friday’s payrolls report that may provide a clearer picture on the strength of the economy and path for interest rates.

Investors were showing tempered enthusiasm for shares that have paced the recent rebound, with banks little changed while consumer and technology shares declined. Health-care and tech were the biggest drags as Johnson & Johnson and Merck & Co. lost more than 1.2 percent, while Microsoft Corp. dropped 1.8 percent. Kroger Co. sank 8.9 percent to weigh on consumer staples after the grocer forecast slower growth this year. Energy producers advanced for a third day.

The Standard & Poor’s 500 Index fell 0.4 percent to 1,978.93 at 11:54 a.m. in New York, after rising Wednesday for a second day to hold at an eight-week high. The Dow Jones Industrial Average slipped 59.82 points, or 0.4 percent, to 16,839.50, and the Nasdaq Composite Index declined 0.5 percent. The Russell 2000 Index of small caps added 0.3 percent to rise for a third day. Trading in S&P 500 shares was 9 percent below the 30-day average for this time of day.

Source: Bloomberg