Shares eased as the White House tempered expectations for a clearer economic picture, indicating that October’s U.S. unemployment data may never be released
Asian stock markets plunged on Friday, following a global selloff, as hawkish remarks from Federal Reserve officials dampened expectations of a U.S. rate cut next month. An uncertain economic data calendar further added to market jitters.
Shares eased as the White House tempered expectations for a clearer economic picture, indicating that October’s U.S. unemployment data may never be released. Adding to market unease and highlighting ongoing inflation concerns, an increasing number of Federal Reserve officials signaled caution regarding further rate cuts overnight.
Alberto Musalem, head of the St. Louis Fed, noted that there is limited room for further easing without risking an overly accommodative stance. Cleveland Fed President Beth Hammack emphasized that interest rate policy should stay restrictive to help curb inflation. Meanwhile, Minneapolis Fed President Neel Kashkari said that he opposed last month’s rate cut and remains undecided about a potential move in December.
Asian shares slide on Wall Street reversal
In the Asian stock market, MSCI’s broadest index of Asian shares outside Japan dropped 1.64 percent, following Wall Street’s sharp reversal overnight, which ended a four-day winning streak and marked the biggest one-day decline since the Liberation Day tariff turmoil in April.
Japan’s Nikkei dropped 1.78 percent, Australia’s S&P/ASX 200 index fell 1.36 percent, and South Korea’s KOSPI tumbled 3.53 percent, with losses intensifying throughout the session.
Treasuries fell as investors pared back expectations for a December Fed rate cut to just 51 percent, down from 63 percent the previous day. In early European trading, Euro Stoxx 50 futures slipped 0.28 percent, German DAX futures edged up 0.14 percent, and FTSE futures rose 0.10 percent.
In the U.S. stock market, S&P 500 e-mini futures gained 0.02 percent, while Nasdaq futures fell 0.5 percent as Asian dip-buying momentum faded.
In the Chinese stock market, the CSI300 eased 0.84 percent after monthly data showed slower-than-expected industrial production and retail sales in October, extinguishing a brief rally in the markets.
Yen recovers slightly as dollar remains near two-week low
Treasury bonds drew safe-haven demand on Friday amid the market turmoil. Despite rising yields, the U.S. dollar slipped 0.1 percent against major currencies to 99.15, near a two-week low. The yen recovered slightly, last trading at 154.43 per dollar after hitting a nine-month trough on Wednesday, while the Swiss franc steadied following an earlier 0.6 percent gain against the dollar.
In commodities, oil prices surged after a Ukrainian drone strike damaged a Russian oil depot, pushing Brent crude futures up 1.5 percent to $63.95 and putting the commodity back in positive territory for the week.
Spot gold rose 0.4 percent to $4,186.48 per ounce, recovering from a 0.6 percent overnight loss that ended a four-day winning streak. Despite the rebound, gold remains well below its record high of $4,381.
