Yen Gains On Safe-Haven Demand; Oil Above $46 – 9 May, 2017
The yen strengthened along with gold while U.S. equity futures slid on fresh concerns over North Korea’s nuclear program. Asian shares edged higher.
Pyongyang will proceed with a nuclear test, according to Sky News. The reports came even as left-leading Moon Jae-in emerged victorious in the presidential elections in South Korea.
The dollar slipped against a basket of currencies, while oil climbed back above $46 a barrel.
SGX Nifty futures indicate a positive start for Indian equities after the NSE Nifty 50 Index closed little changed above the 9,300 mark on Tuesday.
FBI Director Fired
U.S. President Donald Trump abruptly fired Federal Bureau of Investigation Director James Comey, saying the bureau needed new leadership to restore “public trust and confidence.”
Democratic Party leaders condemned the move, saying it was an effort to undermine the agency’s investigation of Russian interference in last year’s election. Comey is only the second FBI chief to have been fired.
The S&P 500 Index fell 0.1 percent Tuesday, while the CBOE Volatility Index edged higher after closing Monday at the lowest level since December 1993.
Oil Above $46
Oil extended gains after industry data showed U.S. crude stockpiles declined, easing concerns over a global supply glut.
Inventories dropped by 5.79 million barrels last week, the American Petroleum Institute was said to report.
Brent crude for July settlement advanced 0.62 percent to $49.03 per barrel on the London-based ICE Futures Europe exchange while West Texas Intermediate for June delivery jumped 0.74 percent to $46.21 a barrel on the New York Mercantile Exchange.
Positive Start?
SGX Nifty futures, an early indicator of Nifty’s performance, rose 0.2 percent to 9,369 as of 7:10 a.m.
Indian shares remained range-bound on Tuesday, as gains in industrial goods maker ABB India Ltd. were offset by profit booking in banks and realty stocks.
Shares of Bharti Airtel Ltd. will be in focus today after the country’s largest telecom operator reported a 71 percent drop in March-quarter profit.
Source: Bloomberg