Thursday, 11 June, 2015

European Stock Futures Slide as Asian Shares Rise; Kiwi Sink

(Bloomberg) — European stock futures slid while equities in Asia climbed a second day. Australian bonds fell after stronger jobs data, while New Zealand’s dollar slid to an almost five-year low after an unexpected interest-rate cut. Euro Stoxx 50 Index futures fell 0.2 percent while the MSCI Asia Pacific Index added 0.6 percent by 7:19 a.m. in London. Standard & Poor’s 500 Index futures lost 0.1 percent, following a surge in the U.S. gauge. Yields on 10-year Australian and Japanese notes rose to their highest levels this year, while the kiwi fell 2.7 percent. Copper in London reversed gains as China reported industrial production data. With less than three weeks until Greece’s aid program expires, the European Central Bank lifted a limit on emergency liquidity funds for the country’s banks, while German Chancellor Angela Merkel told reporters her goal is “to keep Greece in the euro area.” China’s industrial output rose 6.1 percent in May as growth in retail sales kept pace with the previous month, data Thursday showed. “Investors are becoming less risk-off,” said Naoki Fujiwara, Tokyo-based chief fund manager at Shinkin Asset Management Co., which oversees about $6.09 billion. “There’s relief about Greece. China’s numbers weren’t that bad.” China’s Shanghai Composite Index slid 0.3 percent. Hong Kong’s Hang Seng Index rose 0.7 percent, climbing from a two-month low after a health official said the city has no confirmed cases of the Middle East Respiratory virus. Japan’s Topix index snapped a four-day drop, rising 1.3 percent, the most since April. Australia’s S&P/ASX 200 Index climbed 1.4 percent, while New Zealand’s NZX 50 Index gained 0.9 percent, halting a two-day decline. China Data China’s industrial output, retail sales and fixed-asset investment figures provided a counterpoint to inflation and trade data released earlier this week showing a sluggish domestic environment. Signs that the economy may be starting to pull out of its weakest growth since the 2009 global recession could be enough to keep the People’s Bank of China on the sidelines as it waits to see the impact of interest-rate cuts and loosened fiscal policy. The kiwi sank to as weak as 69.98 U.S. cents after the Reserve Bank of New Zealand’s decision, the currency’s weakest intraday level since September 2010. It lost 2.6 percent to neighboring Australia’s dollar, which erased earlier declines after government data showed unemployment unexpectedly fell in May to the lowest in a year. The Aussie was at 77.47 U.S. cents. Australian government bonds dropped, sending benchmark 10-year yields to 3.13 percent, the highest level since November. The yield has climbed more than 80 basis points since March 31, set for its largest quarterly increase in six years West Texas Intermediate crude slipped 0.5 percent Thursday after surging 5.7 percent the past two days. Saudi Arabia, the world largest oil exporter, pumped a record 10.33 million barrels a day in May and U.S. output accelerated last week, separate data showed Wednesday. Copper on the London Metal Exchange fell 0.5 percent, erasing an earlier gain of as much as 0.3 percent. Archr LLP is Authorised and regulated by the Financial Conduct Authority (FCA reference 617163). Archr LLP is not covered by the Financial Services Compensation Scheme (FSCS). Archr is registered in England and Wales No. OC371018. Registered office Chancery House, 30 St Johns Road, Woking, Surrey, GU21 7SA This message may contain confidential or privileged information. If you are not the intended recipient, please advise us immediately and delete this message. The unauthorised use, disclosure, distribution and/or copying of this e-mail or any information it contains is prohibited. This information is not, and should not be construed as, a recommendation, solicitation or offer to buy or sell any securities or related financial products. This information does not constitute investment advice, does not constitute a personal recommendation and has been prepared without regard to the individual financial circumstances, needs or objectives of persons who receive it. You are receiving this email because you are a valued client of Archr.