There is a mixed trend in Asian stock markets.
The yen strengthened and hampering the Tokyo.
Today the Japanese yen strengthened against the US dollar after the Bank of Japan said at a conference that the bank is ready to use all tools at its disposal to cause inflation to rise towards the target of 2%, including a further reduction of short-term interest rates to negative.
Oil data:
The Energy Data Manager reported that US oil inventories fell last week by 6.2 million barrels to 504.6 million barrels.
The market forecast was for a rise of 2.8 million barrels.
Wall street futures contracts rising by 0.4%, and the WTI oil rising by 0.5% to $ 43.8 per barrel.
Apple shares are rising by 1% in the pre trading, after announcing last night that all the stock of iPhone 7 new black color, glossy black (Jet Black) sold out on all models and all versions prior to the start of sale in stores on Friday.
The International Energy Agency has cut its annual forecast of global oil consumption, due to the unstable demand in Asia.
As a result, the WTI oil falling by 2.3% to $ 45.2 per barrel.
The trading day on Wall Street opened with a slight rise at the US markets but an hour later the markets are of a mixed trend.
The background to this change with a view to published data of the ISM Non-Manufacturing sector.
The index showed a decline to 51.4 points, compared with expectations of 55 points and more importantly it shows a drop in momentum in the sector.
There is a sharp increase in crude oil prices and at the same time emerging market currencies are getting stronger against the US dollar.
The Aussie added 0.8% against the dollars, the yen weakened slightly to 103.5700 yen to the dollar.
The Asian markets reacting to the disappointing US employment report with a rises.
Tokyo rises by 1%,Hong Kong rising by 1.7%,Shanghai climbed 0.2%.
The foreign exchange market, the US dollar weakened by 0.3% against the yen and is trading at about 103.62 yen to the dollar.
For the Japanese exporters it is bad news, because they prefer a weak yen to help them be more competitive in export markets.
A surprising contraction in the US manufacturing sector
The manufacturing sector activity contracted unexpectedly in August due to the strengthening of the US dollar, slower growth of the global economy and uncertainty about the US economic outlook.
The manufacturing sector activity index in the US fell in August to 49.4 points – the lowest level since January, compared with a level of 52.6 points in July.
The economists had forecast only a slight decline in the index to 52 points.
Another data showed that the number of reported initial jobless claims stayed near a record low of more than four decades.
Apple’s value is expected to be cut by 10 billion after the the European Commission ruled that tax haven of consumer electronics giant in Ireland is illegal, and ordered the company to pay retroactive taxes amounting Ireland 13 billion euros (14.5 billion dollars).
The stock drops by 1.7% in trading before the opening day on Wall Street.
Commodity market:
The oil is back rising after falling by 1.2% yesterday.
The WTI is rising by 0.4% to 47.18 dollars per barrel.
The US oil inventories rose by 1.5 million barrels last week and tomorrow will be published data on US oil inventories.
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