Positive Trend Continues in Japan Leading Economic Index

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From Trading Economics: Leading Economic Index in Japan increased to 101.20 Index Points in August from 100 Index Points in July of 2016. Leading Economic Index in Japan averaged 96.98 Index Points from 1985 until 2016, reaching an all-time high of 112.80 Index Points in April of 2006 and a record low of 74.80 Index Points in February of 2009. Leading Economic Index in Japan is reported by the Cabinet Office, Japan.

Market Snap

Market Opening Wrap

In Asian Equity Markets, Japanese stocks fell on Friday as investors were cautious before an impending U.S. jobs report, a crucial data point that could influence the timing of the Federal Reserve's next rate hike and underpin near-term direction for risk asset markets. The Nikkei fell 0.2 percent to 16,867.35, following four straight days of gains. The broader Topix fell 0.3 percent to 1,349.75 and the JPX-Nikkei Index 400 shed 0.3 percent to 12,091.33. MSCI's broadest index of Asia-Pacific stocks outside Japan declined around 0.4 percent. Stocks in Hong Kong were down 0.5 percent after data from China showed a third consecutive month of fall in foreign exchange reserves.

In Currency Markets sterling fell to a 31-year low on Friday as anxiety over a "hard" exit by Britain from the European Union triggered a wave of selling, leaving the currency vulnerable to further falls even as it recouped some of the steep losses. Earlier, the pound suddenly dived about 10 percent from levels around $1.2600 to $1.1378 on some trading platforms. The move occurred in a matter of seconds, in thin early Asian trade. Sterling quickly bounced back to levels around $1.2500, and after some choppy moves, it was last fetching $1.2432, still down 1.5 percent on the day. The dollar fell 0.1 percent against the yen to 103.80 after hitting its highest level in a month on Thursday. The euro eased 0.3 percent to $1.1120, poised to shed 1 percent for the week.

In Commodities Markets U.S. oil futures held above $50 per barrel on Friday as the entire crude forward curve pushed above that level in a sign that financial markets have increasing confidence in the sector. U.S. West Texas Intermediate crude futures settled at $50.44 per barrel on Thursday and were trading on Friday up three cents at $50.47 per barrel. International Brent crude futures already moved over $50 at the start of this week and were trading at $52.51 per barrel on Friday, flat with their last settlement. Spot gold fell 0.1 percent to $1,253.76 an ounce. Silver was slightly up at $17.29 after falling over two percent in the prior session, to its lowest since June 22. Platinum was down 0.3 percent at $960.25. Palladium fell 0.8 percent to $662.50.

In US Equity Markets stocks closed little changed on Thursday, even as declining names outnumbered advancers, ahead of job market data seen as key to determining whether the Federal Reserve will raise rates before the end of the year. The S&P 500 gained 0.05 percent, to 2,160.77 and the Nasdaq Composite fell 0.17 percent, to 5,306.85. Twitter fell 20.1 percent as fears mounted that a much-anticipated auction of the social media company will draw minimal interest from potential buyers. Technology news website Recode said Disney and Alphabet would not bid for the company. Wal-Mart lost 3.2 percent and weighed the most on the S&P 500 after the world's largest retailer forecast flat earnings for next year.

In Bond Markets U.S. Treasury yields rose to three-week highs on Thursday as investors prepared for a potentially strong jobs report on Friday, which will be interpreted for when the Federal Reserve is likely to next raise interest rates. Benchmark 10-year notes fell 7/32 in price to yield 1.74 percent, up from 1.72 percent late on Wednesday. The Treasury said on Thursday it will sell $56 billion in coupon-bearing supply next week, including $24 billion in three-year notes, $20 billion in 10-year notes and $12 billion in 30-year bonds.

Source: Institute of Trading and Portfolio Management