European shares rose 0.25 per cent in early trade, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent. Japan’s benchmark stock index also closed 0.5 per cent higher.
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Chinese shares slumped on Friday, weighing on other Asian stock markets, as a fresh regulatory crackdown and falling industrial profits weighed on market sentiment.
During the month, loans accorded rose 1.0 percent from a year ago, compared to a growth of 0.6 percent recorded in September, an European Central Bank spokesman said.
The dollar was back on a bullish footing on Thursday, dusting off its latest setback helped by upbeat US data and monetary easing expectations that dragged down the euro. The single currency slipped 0.3 percent to 130.04 yen after depreciating to 129.78 Wednesday, the weakest since April 28.
In the United States, investors squared positions on Wednesday before the Thanksgiving holiday.
“In some jurisdictions, monetary policy is already testing its outer limits, to the point of stretching the boundaries of the unthinkable”, the BIS said. “The question now is how far can we go, and as the Fed tightens, euro/dollar parity is looking likely by the second quarter of next year”.
Central bank policy makers including ECB President Mario Draghi have said they will do whatever is required to ward off deflation before their December 3 meeting.
Meanwhile, the Bank of England is still mulling when to make its first rate rise, and the Swiss and Swedish central banks are fretting over how to combat overvaluation of their currencies as the prospect of even lower ECB rates makes the euro cheap. The rate is now negative 0.2 percent, meaning that private banks are effectively charged for parking money with the ECB.
Data on Friday is expected to show that USA non-farm payrolls increased by 200,000 in November, keeping the jobless rate at a 7-1/2 year low of 5.0 percent.
Oil prices fell after six days of gains, as investors grew less anxious that violence in the Middle East would disrupt supply, and returned their focus to the global supply glut. Options included stepping up the 1.1-trillion euro ($1.2 trillion) bond-buying program and cutting the deposit rate further below zero.
Analysts noted that Wednesday’s economic data came in mostly in line or above expectations, suggesting the Federal Reserve is likely to raise interest rates in its next meeting in December.
Copper prices bounced to their highest in almost two weeks, then pared gains. The metal has been hit hard in recent weeks bydollar strength.
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Turkish assets remained under pressure as Russian Federation threatened economic retaliation over its downed jet, but other emerging equities edged up, snapping a three-day losing streak.
