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2 February 2018
 |
Hong kong financial markets (The Total Investment & Insurance
Solutions)
Solid U.S. jobs data on Friday did little to improve the mood in global
stock markets as investors continued to worry about rising U.S. bond yields.
KEEPING SCORE: In Europe, Germany's DAX was
down 1.4 percent at 12,825 while the FTSE 100 index of leading British shares
fell 0.3 percent to 7,465. France's CAC 40 was 1.2 percent lower at 5,389. U.S.
stocks were poised for a lower opening with Dow futures and the broader S&P
500 futures down 0.6 percent.
JOBS DATA: U.S. employers added a robust
200,000 jobs in January, slightly above market expectations for a 185,000
increase. Meanwhile wages rose at the fastest pace in more than eight years,
suggesting employers are competing more fiercely for workers. The figures point
to an economy on strong footing even in its ninth year of expansion, fueled by
global economic growth and healthy consumer spending at home.
FED IMPLICATIONS: The pickup in hourly wages,
along with a recent uptick in inflation, may make it more likely the Federal
Reserve will raise short-term interest rates more quickly in the coming months.
The yield on U.S. 10-year Treasury notes, the benchmark for interest rates, has
risen swiftly, stoking investor concerns that higher rates could weigh on
company earnings and equity prices. This week yields hovered at their highest
level since April 2014, fueled by the prospect of stronger economic growth in
the U.S. and abroad.
ANALYST TAKE: "A 3 percent 10-year
Treasury yield is a footstep away," said Neil MacKinnon, chief macro
economist at VTB Capita. "The return of wage inflation will be central
now."
DEUTSCHE DOWN: Shares in Germany's biggest
bank, Deutsche Bank, fell sharply after full-year results showed it still
struggling to turn solid profits after years of wrenching restructuring and
legal trouble. Its share price was 5.3 percent lower at 13.99 euros.
SONY BOSS: The Japanese electronics and
entertainment company tapped its chief financial officer to take over as
president and CEO, taking over from Kazuo Hirai, who is stepping down after
orchestrating a turnaround.
ASIAN SCORECARD: Japan's benchmark Nikkei 225
sank 0.9 percent to close at 23,274.53 and South Korea's Kospi fell 1.7 percent
to 2,525.39. Hong Kong's Hang Seng index dipped 0.1 percent to 32,601.78 but
the Shanghai Composite index recouped early losses in the final hour to close
0.4 percent higher at 3,462.08.
ENERGY: Oil futures extended gains, with
benchmark U.S. crude climbing 15 cents to $65.95 a barrel in electronic trading
on the New York Mercantile Exchange. Brent crude, used to price international
oils, fell 25 cents to $69.40 per barrel in London.
CURRENCIES: The euro fell 0.4 percent to
$1.2459 while the dollar rose 0.8 percent to 110.23 yen.The Total Investment & Insurance Solutions
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