Dollar Steady Before Jobs Data

 


Snapshot: 

        -Dollar steady; 10-year Treasury yield at 2.15%; stock futures flat; Nymex at $45.81; gold at $1087.10
        -Watch for: The Retail Economist/Goldman Sachs weekly chain store sales index; Johnson Redbook retail sales index; Canada manufacturing PMI; ISM-NY report on business; IBD/TIPP economic optimism index; earnings from Walt Disney, Sprint, Coach, CVS, Office Depot, Aetna
        News: Global Inflation Remains Stubbornly Low; Regulators Question High-Speed Trading in Treasurys; RBI Leaves Interest Rate Unchanged
        Currency markets were broadly steady Tuesday, as investors stayed on the sidelines ahead of key jobs reports due later in the week. At 2.25am ET, the euro was marginally higher against the dollar at $1.096, while the dollar was almost flat against Japan's yen at Y124.01. On Monday, the buck edged higher against both the euro and the yen, with strategists saying that investors were anticipating a strong U.S. jobs report later in the week, which could push forward expectations for a rate increase.
        Data out later this week could also dictate the future trading direction. On Friday, the top-tier nonfarm-payrolls report is due, which will be scrutinized for clues to the strength of the labor-market recovery. The Federal Reserve has said it's watching economic indicators -- wages and employment numbers in particular -- as it assesses when to hike interest rates.
        The ADP employment report, considered a precursor to the nonfarm data, is due on Wednesday.
        Tuesday only features one noteworthy data set: Factory orders for June. Economists polled by MarketWatch expect a 2% rise after a 1% drop in May.
        The yield on the 10-year U.S. Treasury note was flat at 2.15% at 2.32am ET. On Monday, the yield fell to a two-month low as a disappointing manufacturing report cast further doubt on the Federal Reserve's plan to raise interest rates as soon as September
        Wall Street was poised for a volatile session, with U.S. stock futures wobbling around the flatline.
        A raft of corporate updates are on tap, with earnings from Coach, CVS, and Sprint among those expected before the bell.
        Futures for the Dow rose 86 points, or 0.1%, while those for the S&P 500 picked up point, or less than 0.1%. Futures for the Nasdaq lost 0.50 point.
        The small losses built on a weak session from Monday, when all three stock averages closed firmly lower after disappointing U.S. economic data and a slump in oil prices. A report on manufacturing activity came in lower than expected reigniting fears that growth in the world's largest economy is losing momentum.
        Global stocks were mixed, as a recent slump in commodity prices and disappointing earnings continued to heap pressure on European markets, while fresh measures to curb volatility in China prompted a share rally there.
        Oil prices clawed up Tuesday in the Asian trade from four-month lows the previous day, though looming new supply from Iran kept a lid on gains.
        Investors' concerns about a supply overhang have risen amid Iran's vows to boost production after sanctions are lifted and a small rise in the U.S. oil-rig count. High crude-oil production by Saudi Arabia and Iraq are adding to the glut.
        On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at $45.81 a barrel at 5.35am ET, up 64 cents. Brent crude rose 61 cents to $50.14 a barrel.
        Gold was 0.2% lower at $1087.10 per troy ounce.
        Platinum and palladium prices fell to multi-year lows on the London spot market, as broader commodity weakness, fears of an interest rate rise in the U.S., and worries about demand in China helped push the two smaller metal markets lower.
        Global Inflation Remains Stubbornly Low
        Global inflation rates were unchanged in June even as some central banks prepare to raise their key interest rates for the first time since the global financial crisis.
        Regulators Question High-Speed Trading in Treasurys
        Senior officials at the Treasury Department and Federal Reserve questioned the benefits of high-frequency trading in U.S. Treasury markets, suggesting market overseers are building the case for new rules targeting the firms.
        RBI Leaves Interest Rate Unchanged
        The Reserve Bank of India left its main interest rate unchanged, as contradictory data failed to provide a clear picture of the health of Asia's third-largest economy.
        Coalition Forces Take Yemen Air Base From Rebels
        Forces fighting for a Saudi-led military coalition in Yemen have defeated the country's Houthi rebels at a strategic southern air base, the Yemeni defense ministry said.
        Appeals Court to Hear Arguments Over Net-Neutrality Rules
        The Federal Communications Commission's new net-neutrality rules will face an important federal-court test in December, when an appeals panel will hear arguments in legal challenges brought by the telecommunications industry.
        Pimco Gets Warning From SEC on Fund
        Pacific Investment Management disclosed that it received a Wells Notice from the staff of the SEC concerning the Pimco Total Return ETF.
        U.S., Turkey Agree to Keep Syrian Kurds Out of Proposed Border Zone
        The U.S. and Turkey have reached an understanding meant to assure the Ankara government that plans to drive Islamic State militants from a proposed safe zone in northern Syria won't clear the way for Kurdish fighters to move in.
        Puerto Rico Defaults on Most of Debt Payment
        Puerto Rico missed most of a $58 million bond payment Monday, the first default by the U.S. commonwealth in what may become one of the largest restructurings in the history of the $3.7 trillion market for debt sold by U.S. state and local governments.
        Sprint Reshuffles Management, Names New CFO
        Sprint Corp. announced Monday a reshuffle among senior management as CEO Marcelo Claure tries to turnaround the struggling wireless provider.
        Write to Sarka Halas at sarka.halas@wsj.com
        (END) Dow Jones Newswires
        August 04, 2015 06:11 ET (10:11 GMT)

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