Asia Pacific stocks were up Friday morning after the U.S. released solid economic data. The Shanghai composite is down 0.47% at 3,591.81. Overall, the Singapore MSCI up 1.14% at 362.60. Over in Hong Kong, the Hang Seng Index down 0.29% to 29,100. In Japan, the Nikkei 225 up 2.21% at 29,160, while the Topix index is up 2.18% at 1948.5. South Korea’s Kospi up 0.86% to 3192.7. Australia S&P/ASX 200 up 1.23% at 7181.9.
European equities Thursday closing. The DAX futures contract in Germany traded 0.28% down at 15406.73, CAC 40 futures up 0.69% at 6435.72 and the UK 100 futures contract in the U.K. up 0.09% at 7,036.3.
In U.S. on Wall Street, the Dow Jones Industrial Average closed flat at 34464.64 the S&P 500 up 0.12% to 4200.87 and the Nasdaq 100 down 0.15% at 13677.4, NYSE closes at 16531.94 up 0.49%.
In the Forex market, GBPUSD down 0.11% at 1.41840. The USDJPY up 0.12% at 109.876. The USDCHF up 0.23% at 0.89895. EURUSD down 0.17% at 1.21732, EUR/GBP up 0.06% at 0.85850. The USD/CNY down 0.16% at 6.3723, at the time of writing.
In the commodity market U.S. Gold futures down 0.32% at $1,890.53. Elsewhere, Silver futures down 0.83% to $27.632 per ounce, Platinum up 0.17% at $1175.38 per ounce, and Palladium down 0.09% to $2,804.00.
Crude Oil up on Friday; Brent crude oil up 0.10% to $69.46 barrel while U.S. West Texas Intermediate (CLc1) is up 0.89% at $67.05.
In the Cryptocurrency Markets, BTCUSD at 37001.49 down 3.97%, Ethereum at 2560.42 down 6.48%, Litecoin at 181.23 down 6.34%, at the time of writing.
TOP STOCKS TO WATCH OUT TODAY:
GENERAL ELECTRIC Co. up 7.09% at $14.35, FORD MOTOR Co. up 7.05% at $14.88, BOEING Co. up 3.865% to $250.7, GAP Inc. up 3.322% to $35.15, ADOBE Inc. down 1.716% to $498.28, INVESCO Ltd. down 5.252% at $28.46.
US: The amount of money flowing into the U.S. Federal Reserve’s reverse repurchase (RRP) facility hit an all-time high of $485 billion on Thursday, further pressuring key short-term interest rates, which risk falling below zero.
Cash-heavy financial institutions have been loaning money to the central bank overnight at 0% interest in increasing amounts since March.
The market is grappling with a glut of cash in the system from Fed asset purchases and the U.S. Treasury’s financial support to the economy in response to the coronavirus pandemic as well as the Treasury reducing its balance at the Treasury General Account, its store of cash with the Fed, ahead of the nation’s debt ceiling coming back into effect at the end of July.
The record amount accepted by the New York Fed for Thursday’s RRP operation was up from Wednesday’s $450 billion and exceeded a previous high of $474.6 billion on Dec. 31, 2015, according to data from TD Securities.
“This definitely increases the odds that the Fed does something, that they’re going to have to make additional tweaks either to the counterparty limits on the reverse repo facility, maybe hike the rate on the facility, and they obviously could hike the IOER (interest on excess reserves), but we feel that is probably the last resort,” said Aneta Markowska, chief economist at Jefferies (NYSE:JEF).
Eurozone: The European Central Bank is increasingly expected by economists and investors to extend the elevated pace of its emergency bond-buying at its next meeting, despite a likely economic rebound.
HSBC Holdings Plc (LON:HSBA), UBS Group AG (SIX:UBSG) and ABN Amro Bank NV are among those who expect the Governing Council to prolong current stimulus settings on June 10. Economists surveyed before the previous meeting said purchases would probably be scaled back next quarter.
The predictions come after days of top officials pushing back against the idea that they’re ready to slow buying. With more-hawkish colleagues relatively quiet on the matter, the scene is set for yet more ultra-loose policy.
“This tilts the likelihood to a continuation of the ‘significantly’ faster purchase pace into the third quarter, even if the decision may still be close in June and require some element of compromise,” JPMorgan Chase & Co. (NYSE:JPM) economist Greg Fuzesi said in a report.
Important Data: French Consumer Spending (MoM) (Apr) today at 2:45 this time estimated 0.4%, previously which was -1.1%. US Michigan Consumer Expectations (May) today at 10:00 this time estimated 77.6, previously which was 82.7. French GDP (QoQ) (Q1) today at 2:45 previously which was 0.4%. Italian 10-Year BTP Auction today at 5:45 previously which was 0.88%.
TRADE SUGGESTION- BUY AT 1.41830, TAKE PROFIT AT 1.42048 AND STOP LOSS AT 1.41757
TRADE SUGGESTION- SELL AT 1.21764, TAKE PROFIT AT 1.21556 AND STOP LOSS AT 1.21926
TRADE SUGGESTION- SELL AT 0.85781, TAKE PROFIT AT 0.85776 AND STOP LOSS AT 0.85807
TRADE SUGGESTION- BUY AT 155.979, TAKE PROFIT AT 156.048 AND STOP LOSS AT 155.895
DJ EURO STOXX 50
TRADE SUGGESTION- BUY AT 4047 TAKE PROFIT AT 4051.00 AND STOP LOSS AT 4044.00
WTI CRUDE OIL
TRADE SUGGESTION- BUY AT 66.82 TAKE PROFIT AT 67.05 AND STOP LOSS AT 66.71
TRADE SUGGESTION- BUY AT 1889.63, TAKE PROFIT AT 1899.72 AND STOP AT 1886.48
TRADE SUGGESTION- SELL AT 2571.64 TAKE PROFIT AT 2459.54 AND STOP AT 2636.57