South Korea’s Kospi added 0.3 percent to 2,000.03 and Hong Kong’s Hang Seng index gained 0.4 percent to 21,832.23.
Advertisement
“By acting early and comprehensively, the [Bank] can reduce uncertainty, bolster confidence, blunt the slowdown and support the necessary adjustments in the United Kingdom economy”, Bank of England Governor Mark Carney told a news conference. “Alongside the actions the Bank is taking, I am prepared to take any necessary steps to support the economy and promote confidence”, Hammond said in a letter to the central bank.
It was down 1.5 percent at $1.3126 by late afternoon in London, while stock markets rose, as the weaker currency will help numerous country’s multinationals and exporters earn more money overseas.
With swaps prices indicating the probability of a cut Thursday at 99.7 per cent, and speculative investors being the most bearish on the pound since records going back to 1992, some are adjusting positions to limit potential losses in case the BOE surprises by keeping rates unchanged. Those estimates are up from prior forecasts for 0.4%, 1.5% and 2.1%, respectively.
The monthly hiring data will help investors gauge the health of the economy and possibly offer insight as to when the Federal Reserve will raise interest rates again. “It’s safe to say former Chancellor George Osborne’s many years of austerity policies are set to be dramatically reversed”.
The US dollar was mixed against other currencies ahead of Friday’s US jobs report for July, expected to show the US added 185,000 jobs, down from 287,000 in June. Economists expect the data to show the US economy added 175,000 jobs July, with the unemployment rate dipping to 4.8 percent from 4.9 percent. It estimated that lower bound to be “close to, but a little above, zero”. The number of Americans collecting unemployment benefits has fallen more than 5 percent in past year, but the pace of hiring and economic growth slowed in the first half of 2016. Growth in 2017 was lowered to 0.8% from a prior forecast for 2.3%, and the economy will grow 1.8% in 2018, down from a previous projection for 2.3%.
In the eurozone, the Frankfurt and Paris markets also rose, but their closing gains were well behind London’s. “The bigger picture is that wage growth will likely remain too week to create major cost pressures”, said Marcel Thieliant of Capital Economics in a report.
Spot gold was up 0.3 per cent at $US1,361.14 an ounce by 3:00 p.m. EDT (0500 AEST), off an earlier low of $US1,348.50, while USA gold futures for December delivery settled up 0.2 per cent at $US1,367.40. The contract jumped $1.10 on Thursday to close at $41.93.
Global benchmark Brent crude futures slipped 0.5 per cent to $44.07, heading for a weekly rise of 3.8 per cent.
Advertisement
The yen held steady at 101.20 per dollar, not far from Tuesday’s three-week high of 100.68 to the dollar. The pound strengthened 0.2 per cent Wednesday to 83.86 pence per euro.
