Asian shares jumped to three-week highs today and U.S. equity futures rebounded on a report that U.S. President Donald Trump has asked officials to draft terms for a potential trade deal with China following a phone call with leader Xi Jinping. U.S. stock futures rose 0.7 percent. Chinese shares surged. Chinese blue-chips gained 3.0 percent, and its start-up board added 3.8 percent, also buoyed by President Xi’s pledge on Thursday of more support for private firms. Earlier this week, Trump was quoted as saying Beijing wasn’t ready to do a deal and he was prepared to slap more tariffs on China if his meeting with Xi was not productive.
Investors will be looking ahead to a U.S. jobs report, due at 12:30 GMT, for more indications on the health of the U.S. economy and the clues on the pace of further interest rate rises. U.S. non-farm payroll figures are expected to rise 190,000 in October from 134,000 a month earlier, with average hourly earnings seen increasing 0.2 percent in October after a 0.3 percent gain the previous month. Those numbers follow data this week revealing slower factory growth around the world, adding to worries about the outlook for corporate earnings, business investment and trade.
In main currencies, dollar’s sell-off cooled temporarily in the US afternoon, but there was no relevant change in intraday trends, nor significant pullbacks, with the EUR/USD pair settling around 1.1410 ahead of US employment data. Regarding GBP/USD, the Sterling led dollar’s sell-off this Thursday, as, during the Asian session, news agencies reported that British Prime Minister May struck a deal with the EU on financial services. The GBP/USD pair regained the 1.2900 level during Asian trading hours, suffering a knee-jerk following the release of October UK Markit Manufacturing PMI, down to 51.1 from September 59.7.
In commodities, regarding Gold, with the greenback staying under a heavy bearish pressure on Thursday, the pair erased all of the losses it suffered since the start of the week and broke above the $1230 mark, after touching a 5-day high at $1237. Regarding Oil, crude prices continue to trade into the downside as energies remain hopeful that Iran sanctions will come to pass with little commotion.
For today the high impact news in the economic calendar include: Retail Sales m/m, Employment Change, Unemployment Rate, Average Hourly Earnings m/m, Non-Farm Employment Change and Unemployment Rate.