Friday, January 10, 2020

US stocks surge to new record highs; traders to focus on NonFarm payrolls later today

Tags
  • Dollar
  • Gold
  • Stocks
  • NonFarm Payrolls
  • US payrolls

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Market Recap: US stocks surge to new record highs; traders to focus on NonFarm payrolls later today

Wall Street ended Thursday at record highs as the US stock market continued to rally as fears for escalating political tension between the US and Iran subsided. Apple led gains in the US, surging 2.12% after Jefferies raised its target price for the tech giant from US$285 to US$350 per share as iPhone sales spiked more than 18% in China for December.

Boeing shares recovered after Canadian Prime Minister Justin Trudeau said that the Ukrainian jet (a Boeing 737-800 aircraft) that crashed on Wednesday may have been shot down by an Iranian missile, although it may have been unintentional. Boeing rose as much as 3.1% and ended the day 1.5% higher at US$336.34 per share as it lifted concerns that a mechanical failure could be the cause of the fatal crash.

Indexes Change (%) Net Change Closing Price
Dow Jones 0.74% 211.81 28,956.90
S&P500 0.67% 21.65 3,274.70
Nasdaq 0.81% 74.18 9,203.43
*Source: Bloomberg

The dollar extended gains against most major currencies on Thursday, after initial jobless claims declined for the fourth straight week, coming in better-than-expected at 214,000. Traders will likely be watching for today's labour report from BLS in the US at 9.30pm (GMT +8).

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Safe haven assets continued to retreat as markets focus on the upcoming trade deal. Gold fell and the yen weakened against the dollar, signalling that demand is shifting back to risky assets. US President Donald Trump said that the second phase of trade talks with China will start immediately after the two superpowers sign the phase one trade deal, although may not be completed until after the US elections in November. US Treasuries recovered on Thursday, with benchmark 10-year yields falling 2bps to 1.85%.

Safe Haven Assets Change (%) Net Change Closing Price
Gold -0.26% -4.10 1,552.32
Silver -1.11% -0.20 17.80
JPY -0.37% -0.40 109.52
*Source: Bloomberg
US Treasury yields Change (bps) Yield (%)
2-Year 0 1.58%
10-Year -2 1.85%
30-Year -3 2.33%
*Source: Bloomberg

Oil prices extended losses as worries for oil production being affected by the conflict between the US and Iran faded. Brent and WTI crude oil futures were both lower for the third straight session.

Oil Futures Change (%) Net Change Closing Price
Brent Crude -0.11% -0.07 65.37
WTI Crude -0.08% -0.05 59.56
*Source: Bloomberg

In Asia, stocks look set for gains on Friday, with the Nikkei, KOSPI and ASX2000 advancing at the start of the trading session.

Asia Change (%) Net Change Last Price As of (GMT +8)
Nikkei Index 0.33% 79.00 23,817.60 8:13:00 AM
KOSPI Index 0.25% 5.55 2,192.00 8:33:00 AM
ASX200 Index 0.61% 42.17 6,915.00 8:32:36 AM
Hang Seng Futures -0.13% -38.00 28,584.00 2:59:56 AM
*Source: Bloomberg

Economic highlights for the day ahead (all timings in GMT +8):

  • US Dec Change in NonFarm Payrolls (9.30pm)
  • Canada Dec Employment Rate/Change (9.30pm)