Asian markets opened with losses after a flash crash in the pound rattled investors. Bonds continued their sell-off amid speculation that the U.S. jobs data due later today will boost the case for a Federal Reserve interest rate hike this year.
Pound Falls Most Since Brexit
The British pound fell as much as 6.1 percent, its biggest intraday slide since the Brexit vote on June 24, before quickly recovering. Analysts believe the fall was driven by algorithms.
The dollar gained against the yen for the eighth straight day, posting its longest rally against the Japanese currency since 2014.
U.S. Jobless Claims Fall
U.S. markets ended the Thursday session on a mixed note, even as jobless claims fell to an almost 40-year low, according to data from the U.S. labour department.
Filings for unemployment benefits fell by 5,000 to 2,49,000 for the week ending October 1. A Bloomberg survey had estimated the figure to be 2,56,000. Investors will await the monthly payrolls report later today, which could determine the future course for the Fed. Odds of a rate hike by December climbed to 63 percent, according to futures rates tracked by Bloomberg.
The S&P 500 Index ended marginally higher while treasury yields rose to three-week highs.
Oil Back Above $50
West Texas Intermediate crude for November delivery rose above the $50 per barrel mark after U.S. inventories fell for the fifth straight week. Oil has gained nearly 13 percent since Organization of the Petroleum Exporting Countries' (OPEC) September 28 decision to impose an output cut.
Hurricane Matthew, the strongest storm system to threaten the U.S. since 2005, is headed for the Southeast coast, and may disrupt fuel supplies.
Feeble Friday?
The SGX Nifty Index traded little changed at 8,743 as of 7:00 a.m. indicating a tepid start for Indian equities that are on a two-day losing streak.
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