Asian Stocks Wobble, Global Equities Set to Snap 9-Week Winning Streak
Global Equities on Track to End Winning Streak, Dollar Poised for Strong Weekly Advance
Asian stocks wobbled on Friday, leading to global equities likely snapping a nine-week winning streak. The dollar also appeared set for its strongest weekly advance since mid-July, as bets on aggressive Federal Reserve rate cuts were reconsidered.
Asian Stocks Pacific Shares and Wall Street Decline
MSCI’s broadest index of Asia-Pacific shares outside Japan eased by 0.1%, with Hong Kong’s market declining by 0.18%.
On the world index, there was minimal movement so far on the day, but a 1.7% decline was on track for the week.
Meanwhile, Wall Street endured a 0.34% retreat, accumulating losses of 1.7% this week and setting up its first weekly decline since late October. Futures pointed to a 0.08% rise at the reopen.
Dollar and Rates Market Update
The dollar, measured against a basket of six major peers including the yen, hovered around 102.39, not far from Wednesday’s three-week high of 102.73. For the week, it is up 0.97%.
On the other hand, the U.S. 10-year yield was hovering just below the psychological 4% mark at about 3.99%, up some 13 basis points over the week.
The Probabilities of Fed Rate Cuts
Traders now see a little better than 2-in-3 odds that the Fed cuts rates by March, down from a 71% probability a week earlier, according to the CME Group’s (NASDAQ:) Fedwatch tool.
The release of monthly U.S. payrolls figures looms large later in the day, with investors “agonising” over the timing and pace of rate cuts, according to Kyle Rodda, senior financial market analyst at Capital.com.
Commodities and Oil Prices
Elsewhere, gold edged higher to around $2,047 per ounce, though it was braced to snap a three-week winning streak with a 0.76% slide so far in 2024.
Oil prices slightly rose following declines on Thursday, with Brent futures up 0.18% at $77.73 per barrel, and U.S. West Texas Intermediate crude futures adding 0.43% to $72.50 on Friday.
For the week, Brent is up 0.96%, while WTI has gained 1.17%.
