Singapore market trends Monday: US dollar weakens after jobs data

U.S. five dollar currency note; taken September 2018.

Singapore’s shares will start the week with negative leads from Wall Street, while a weaker U.S. dollar may complicate traders’ outlook, especially if there’s reason to expect the Federal Reserve may hike rates more than expected.

“After rising for most of the week, the greenback’s rally lost momentum on Friday on the back of mixed labor market data,” Kathy Lien, managing director of foreign-exchange strategy at BK Asset Management, said in a note on Friday.

She noted the U.S. non-farm payrolls report missed expectations, with the fewest jobs added in six months, although it was attributed to Hurricane Florence putting people out of work. But Lien also pointed to the unemployment rate falling to a 48-year low.

But she said the dollar’s retreat could be a blip.

“The relative strength of the U.S. economy and the Federal Reserve’s resolve to tighten monetary policy is unquestionable. Federal Reserve presidents are worried about inflation accelerating and next week’s economic reports should reinforce their concerns,” she said, adding that investors were beginning to consider the possibility of three interest rate hikes next year, rather than two.

Indexes

Japan’s markets were closed for the Health-Sports Day holiday. South Korea’s Kospi was down 0.24 percent at 8:14 A.M. SGT.

Singapore’s Straits Times Index ended Friday down 0.68 percent at 3209.79; October futures for the index were at 3211 on Friday, while November and December futures were at 3214 and 3212.

Hong Kong’s Hang Seng Index was down 0.19 percent at 26,572.57 at Friday’s close. China’s markets were closed last week for its week-long holiday.

Indonesia’s IDX Composite Index was down 0.43 percent at 5731.94 on Friday.

The Dow Jones Industrial Average fell 0.68 percent to end at 26,447.05 on Friday, the Nasdaq Composite lost 1.16 percent to 7788.447 and the S&P 500 gave up 0.55 percent to 2885.57. Futures for the three indexes were nearly flat in early trade on Monday.

The U.S. markets will have a partial holiday on Monday for the Columbus Day or Indigenous Peoples’ Day holiday; stock markets will trade, but the bond market is shuttered and it is a bank holiday.

Currencies

The U.S. dollar index, which measures the greenback against a basket of currencies, was at 95.63 at 7:54 A.M. SGT, off levels as high as 95.94 on Friday and levels a bit above 96 earlier in the week, according to ICE futures data.

The 10-year U.S. Treasury note yield was at 3.23 percent at 5:01 P.M. ET on Friday, off levels as high as 3.244 percent during the session, according to Tullett Prebon data.

The euro/dollar was at 1.1524 at 8:07 A.M. SGT after trading in a 1.1483 to 1.1550 range on Friday, according to DZHI data.

The dollar/yen was at 113.71 at 8:08 A.M. SGT after trading in a 113.53 to 114.101 range on Friday, off a high of around 114.55 earlier in the week, according to DZHI data.

The dollar/yuan was at 6.8679 at Friday’s close after trading in a 6.8650 to 6.8680 range on Friday, according to DZHI data.

The dollar/Indonesian rupiah ended Friday at 15,175 after trading in a 15,155 to 15,188 range, according to DZHI data.

The dollar/Singapore dollar was at 1.3828 at 8:11 A.M. SGT after trading in a 1.3793 to 1.3834 range on Friday, according to DZHI data.

Oil

Nymex WTI crude oil furutres for November were down 0.51 percent at US$73.96 a barrel at 7:37 A.M. SGT, while Brent crude oil futures for December were off 0.59 percent at US$83.66 at 7:37 A.M. SGT, according to Bloomberg data.

Read more: Crude oil gains set to continue Monday ahead of Iran sanctions

Correction: This article has been updated to correct the day of the week in the headline.

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