Jobs test Fed relief, Apple buyback bump
A look at the day ahead in U.S. and global markets from Mike Dolan
The strength of the U.S. labor market will give Wall Street's interest rate relief a reality check on Friday, but Apple's AAPL.O monster share buyback has buoyed the market in advance.
The world's second biggest company by market capitalisation wowed the gallery overnight with a whopping $110 billion stock buyback program - the biggest in the iPhone maker's history - and upped its dividend by 4% after a modest first quarter earnings beat.
The news lifted Apple shares 6% in out-of-hours trading and helped S&P500 futures extend Thursday's near-1% index rally ahead of today's open.
It's also strengthened the tailwind from this week's Federal Reserve meeting, which has calmed the Treasury market considerably by quashing creeping fears of another interest rate rise and surprising with a big taper of the Fed's balance sheet runoff.
The upshot is that futures markets have bumped up full-year Fed easing expectations to 40 basis points on Friday - 10 bps more than was priced just before the Fed meeting. And two-year Treasury yields have fallen to three-week lows below 4.90%.
The big test of that more relaxed view now comes from the April U.S. employment report later. Private sector payroll readings for last month and jobless claims updates this week show little give yet in a still-tight labor market - even though ebbing job openings data for March added a twist.
U.S. non-farm payrolls are forecast to have risen 243,000 last month, only marginally cooler than the 303,000 added in March. The unemployment rate is expected to hold steady at 3.8%, while annual average earnings growth is seen cooling to 4.0%.
Cooling inflation fears in the background have seen a recoil of U.S. crude oil prices CLc1 this week, back below $80 per barrel for the first time in almost two months. And even though the United Nations' Food and Agriculture Organization said its food price index ticked up in April, it remains 7.4% below the level a year earlier after hitting a three-year low in February.
Easier Treasury yields have taken the wind out of the dollar's .DXY sails, however, as the currency market's standoff with Japanese authorities over official yen JPY= support remains tense.
After two bouts of Bank of Japan intervention this week to buoy the yen from a 34-year trough at 160 per dollar, the exchange rate fell back to three-week lows below 153 on Friday.
The week's intervention forays, which estimates suggest may have totalled up to $60 billion in dollar sales, have tended to come in relatively thin and illiquid markets.
With the world's biggest currency trading centre in London closed for a bank holiday on Monday, there's likely to be some trepidation among speculators who are heavily short yen going into the weekend.
Elsewhere in Asia, Hong Kong stocks continued their remarkable recovery on signs the China's government is stepping up efforts to boost the economy.
The Hang Seng Index .HSI climbed 1.5% for a ninth consecutive day of gains - its longest winning streak since January 2018.
UBS says global hedge funds that use an equities long-short strategy are growing increasingly bullish on China, evidenced by the heavy pick-up in their purchases of Hong Kong-listed shares.
In Europe, Norway's crown NOK= rose after its central bank kept its key policy interest rate on hold but said a tight monetary policy stance may be needed for somewhat longer than planned.
In company news, Anglo American AAL.L jumped 3.2% after Reuters reported that Glencore GLEN.L was mulling an approach for the 107-year old miner, a move that could spark a bidding war. Glencore was down 1.8%.
European banks were also buoyant. Societe Generale SOGN.PA jumped 5.5% following a lower-than-expected fall in first-quarter net income, while Credit Agricole CAGR.PA climbed 3.7% after a forecast-beating 55% jump in first-quarter net profit.
Key diary items that may provide direction to U.S. markets later on Friday:
* US April employment report, ISM and S&P Global's April U.S. service sector surveys
* New York Federal Reserve President John Williams and Chicago Fed President Austan Goolsbee speak
* Japan's finance minister Shunichi Suzuki holds press conference on sidelines of ADB meeting in Tbilisi. Brazil president Luiz Inácio Lula da Silva meets Japan's Prime Minister Fumio Kishida in Brasilia
* US corporate earnings: Hershey, Monster Beverage, CBRE, Cboe Global Markets, Trimble
US jobless claims and planned layoffs https://reut.rs/4dljn0q
Positive US economic surprises fade https://tmsnrt.rs/4blopbr
US Sector performance YTD https://reut.rs/3QsngH6
Investors Short Japan's yen https://reut.rs/3UHHBKW
China buyers are front-running Hong Kong's stock rally https://reut.rs/3Qv9Da9
By Mike Dolan; Editing by Ros Russell; mike.dolan@thomsonreuters.com
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
