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Current Futures: Dow -39.00, S&P -4.90, NASDAQ -8.00
Asian markets advanced tonight, helped by the better than expected Non-farm Payroll release. However, the S&P futures lost a few points tonight as it is testing the low touched on Friday.
Asian market was pulled higher by the exporting companies tonight, especially the ones with strong exposure to the U.S. consumer market. Recent macroeconomic reports showed that the global economy is recovering, something that may make traders believe that consumption is set to rise over the coming few quarters. Despite this, many companies are still trading at their highest Price-Earnings Ratio (P/E Ratio) over the last few years.
The Japanese Nikkei was also influenced by the weakness of the yen posted throughout the last week of trading, which further helps the country’s export industry. Mazda and Isuzu continued to rally following GM’s bankruptcy, while one of the biggest manufacturer’s of construction machineries in the world, Komatsu gained 5%, after both Morgan Stanly and Nomura Holdings upgraded the company’s rating.
On Friday, the infamous NFP report showed that the U.S. economy lost 345K jobs in May, coming in much lower than the forecasted number. Moreover, the report showed that the U.S. economy lost the least amount of jobs over the last eight months in May, something that rallied many investors’ hopes that the economy is recovering. However, the unemployment rate continued to advance in May, even at a stronger pace than it was previously seen. As such, the unemployment rate reached 9.4% in May, the highest since 1983.
Overnight, the Japanese Nikkei added 136.55 points (1.40%) to 9,904.56. The Australian S&P/Asx advanced 36.60 points (0.93%) to 3,971.20.
Crude oil for July delivery was recently trading at $68.10 per barrel, lower by $0.40.
Gold for July delivery was recently trading lower by $4.50 to $958.10.
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