Crude oil hovers narrowly around 80 Friday. Currently trading as 79.6, the benchmark contract is expected to gain about +4% this week. Although crude oil resumed rally this week, the momentum has obviously slowed down from October. This probably reflected decline in risk appetite.
Gold price stays strong in European morning. Currently trading at 1094, the benchmark contract will likely record +5% gain on weekly basis. This will be the biggest increase since April 2009. Others in the precious metal complex also soar. Silver is expected to rise more than +7% following a decline of -8.3% in the previous week. Platinum probably climbs more than +2%, almost offsetting last week's fall.
While the market is holding breath for US' employment report, a government report showed that UK's PPI rose +0.2% mom, compared with consensus of +0.4%, after a +0.5% rise a month ago. This translated into annual growth of +1.7%. The slowdown in PPI suggested the low policy rate in the US is warranted.
Stock market rebounded Friday. In Asia, the MSCI Asia Pacific Index gained +1.1% as the RBA upgraded its economic forecasts for Australia. In the quarterly report, the RBA estimated that GDP will grow +1.75% and +3.25% in 2009 and 2010 respectively. These forecasts are significantly higher than corresponding +0.5% and +2.25% projected in August. According to Governor Glenn Stevens, 'a further gradual lessening of monetary stimulus is likely to be required over time', suggesting the central bank will continue tightening in coming months. Australia's S&P/ASX 200 Index rose +1.9% to 4594.
In Europe, stocks change little with benchmark indices fluctuate between gains and losses. UK's FTSE 100 climbs +0.1% to 5133 while both DAX and CAC 40 stay flat.
The market expects non-farm payrolls to -175k in October, much better than -263K in the prior month This probably lifted the unemployment rate 9.9% from 9.8%. However, employment surveys released ealier this week were rather mixed. Employment component of ISM manufacturing index rose remarkably to 53.1 in October, first expansionary reading since August 2008. However, the same component of ISM non-manufacturing index unexpectedly dropped to 41.1.
Although the market is rather quiet in both Asian and European sessions, huge volatility is likely should employment data surprise, either on the up or down side.