Thursday Morning Briefing: Most Of Asia Climbs; Crude Rebounds
Most Asian stocks began June higher as investors continue to assess the strength of global economic growth.
Global equities ended May just shy of a record high as earnings growth remain strong enough to support optimism in the global economy, offsetting concerns on inflation outlook.
Japanese shares advanced while the Hang Seng index remained marginally lower. Bank shares led mild declines on the S&P 500 Index overnight after JPMorgan Chase & Co. and Bank of America Corp. said second-quarter trading revenue is on pace to drop at least 10 percent as tranquil markets sap demand.
The pound slid marginally as the latest Times/YouGov poll showed the Conservatives leading Labour by just three points.
The Beige Book Report
The U.S. economy continued to grow “modestly” or “moderately” in nearly all regions in recent weeks, though new signs emerged of optimism waning in some districts, a Federal Reserve survey showed.
The central bank's Beige Book economic report, based on anecdotal information collected by the 12 regional Fed banks through May 22, said several sectors from manufacturing to housing continued to expand slowly. Consumer spending softened, however, with many districts reporting little or no change in non-auto retail sales.
While policy makers are expected to raise interest rates in June, the survey's findings underlined the growing tension in the U.S. economy, and among Fed officials, over seemingly contradictory signals from inflation and the labour market.
Meanwhile, Dallas Fed boss Robert Kaplan said he's concerned about recent declines in the core measure of inflation, though reiterated he expects two more rate increases this year.
Full report: Fed Survey Shows Modest Growth With Tight Labor and Tame Prices
#BQMarketsNow | U.S. stocks end little changed; crude oil rebounds.https://t.co/kL6aulc7Ht pic.twitter.com/rBF8qmxtaq
June 1, 2017Crude Rebounds On Weak Stockpile Data
Oil rebounded from the lowest close in more than two weeks after industry data showed U.S. crude stockpiles extended declines easing an inventory overhang.
Futures rose as much as 1.2 percent in New York after losing 3 percent the previous two sessions. U.S. inventories fell by 8.67 million barrels last week, the American Petroleum Institute was said to report. While U.S. stockpiles have edged lower, American production and drilling continues to climb.
Also Read: Trouble Brews for OPEC as Expensive Deep-Sea Oil Turns Cheap
Economic Data To Weigh On Trade
The Singapore trading SGX Nifty, an early indicator of trade in India, was unchanged at 9,631 at 7:16 a.m. The market will react to a slew of macroeconomic data that was released after market hours on Wednesday.
National income data released on Wednesday shows that gross value added (GVA) growth slowed sharply in the fourth quarter to 5.6 percent, compared to 6.7 percent in the third quarter. Growth in the fourth quarter of fiscal 2017 is also much lower than the 8.7 percent growth reported in the fourth quarter of fiscal 2016.
India's fiscal deficit narrowed in March to meet the government's revised target of 3.5 percent in financial year 2016-17.
Investors will eye monthly auto sales and Nikkei India PMI Manufacturing data today for further cues on the strength of the Indian economy.
Also Read: Demonetisation Leaves An Imprint On GDP Growth In FY17
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