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Current Futures: Dow -17.00, S&P -1.30, NASDAQ -2.25
Asian markets are gaining ground on relative weak volume, similar to what happened earlier during the U.S. spot session. Unaffected by the Asian session, the U.S. futures are trading just under the break-even line.
The main gainers in the two trading sessions for the U.S. and Asia were the financials and the commodity stocks. The financial sector saw a day of relief as the 10-year Treasury note found buyers on Thursday, after reaching a record 6-month high just one day ahead. Moreover, the spread between the 2- and the 10-year Treasury notes reached the highest record on level, suggesting that the Fed would be forced to raise interest rates very quickly as soon as the economy recovers, in order to prevent inflationary fears, TheLFB-Forex.com Trade Team said.
Commodity stocks also gained ground in the Asian and the U.S. trading sessions, as oil led most of the raw materials to multi-month highs. Crude oil broke above the $65 dollar benchmark, being the highest level the commodity touched over the last seven months. As such, the energy and the materials sectors posted strong gains, especially the gold miner’s ETF, which returned 4.3% in a day when the other sectors returned less than 1%.
Overnight, the Japanese Nikkei added 1.37 points (0.01%) to 9,452.76. The Australian S&P/Asx rose 35.70 points (0.95%) to 3,791.40.
Crude oil for June delivery was recently trading at $64.75 per barrel, lower by $0.30.
Gold for June delivery was recently trading lower by $0.80 to $962.80.
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