Asian stocks fluctuated in early trade, even as they eye their best weekly run since September. U.S. equity markets scaled fresh record highs after the European Central Bank pledged to cut bond buying from April while extending quantitative easing until the end of 2017.
The dollar gained for the second consecutive session, while the yen is on track for its longest run of weekly losses in two years. Oil rose above $51 per barrel ahead of the Saturday meeting between OPEC (Organization of Petroleum Exporting Countries) and other producers on output cuts.
ECB To Extend Stimulus
ECB kept the main refinancing rate, which determines the cost of credit in the economy, unchanged at 0.00 percent on Thursday. The central bank expanded its quantitative-easing program to exceed 2.2 trillion euros ($2.4 trillion) by the end of 2017, even as it unexpectedly cut asset purchases to 60 billion euros per month from April 2017 from the current 80 billion euros.
Concerns over the euro-area growth remain on the downside and that the central bank can prolong or increase asset purchases if need be, ECB President Mario Draghi said in Frankfurt.
The euro rose as much as 1.1 percent post the announcement, before paring gains and sliding as low as 1.3 percent against the dollar.
Also Read: Draghi Says $2.4 Trillion Stimulus May Not Be Enough for ECB
Jobless Claims Decline
The number of people filing for unemployment benefits in the U.S. fell by 10,000 to 2,58,000 for the week ending December 3, according to a Labor Department report. The median forecast of economists surveyed by Bloomberg had pegged the figure at 255,000.
Claims have stayed below the 300,000 level for 92 consecutive weeks, the longest stretch since 1970. The focus has now shifted to the U.S. Federal Reserve, which will meet on December 13-14 to decide the future course of action. The odds of at least a quarter-percentage point rate hike remained at 100 percent, according to futures rates tracked by Bloomberg.
Also Read: Applications for Jobless Benefits in U.S. Fell in Latest Week
ECB's actions coupled with a renewed sell-off in bonds spurred the U.S. equity markets to fresh record highs on Thursday. The S&P 500 Index gained 0.2 percent, extending its post-Trump victory rally to over 5 percent. The Dow Jones Industrial Average has now gained in seven out of the last eight trading sessions.
Also Read: U.S. Indexes Rack Up the Records After ECB as Euro, Bonds Slide
Oil Above $51
Crude oil held gains near the $51 per barrel mark ahead of OPEC's meeting with non-member producer countries in Vienna on Saturday to discuss production cuts. OPEC is anticipating a cut of an additional 300,000 barrels per day along with Russia that has pledged to cut production by the same amount.
Oil has rallied over 12 percent since November 30, when OPEC agreed to trim production for the first time in eight years.
Friday Fervour?
The SGX Nifty Index rose 0.6 percent at 8,288 as of 7:10 a.m., indicating a positive start for Indian equities. A rally in metal and automobile stocks pushed the S&P BSE Sensex and the NSE Nifty 50 higher by over 1.5 percent each on Thursday.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
