Daily Market Outlook

Currencies

• EUR/USD The euro slid against the yen and the dollar after European Central Bank President Mario Draghi failed to offer sufficient measures to curb the region’s debt crisis.
  • The euro dropped 0.6 percent to 95.30 yen at 5 p.m. in New York after rising as much as 1.1 percent. The single currency fell 0.4 percent to $1.2180 after climbing 1.5 percent to $1.2405, the highest level since July 5. The dollar declined 0.3 percent to 78.24 yen.

• USD/JPY The yen strengthened against most of its major peers as indications of slowing global growth and concern that Europe’s debt crisis is worsening fueled demand for haven assets.
  • The yen fetched 78.19 per dollar as of 1:28 p.m. in Tokyo
    from 78.24 yesterday, extending its weekly gain to 0.4 percent.
    It climbed 0.1 percent to 95.19 per euro, having risen 1.5
    percent since July 27. The euro traded at $1.2175 from $1.2180
    yesterday, poised for a 1.2 percent weekly drop.

• AUD/USD Australia’s dollar was set for its first five-day loss in a month before a report that may show hiring gains in the U.S. failed to lower the unemployment rate, sapping demand for higher-yielding assets.
  • The Australian dollar bought $1.0470 as of 1:06 p.m. in Sydney from $1.0465. The Aussie fell 0.1 percent to 81.84 yen. New Zealand’s currency rose 0.3 percent to 81.26 U.S. cents. It gained 0.2 percent to 63.53 yen.

• USD/CAD Canada’s dollar weakened for a third day against its U.S. counterpart as risk appetite waned after the European Central bank failed to introduce sufficient steps to address the region’s debt crisis.
  • Canada’s currency, nicknamed the loonie, weakened 0.2 percent to C$1.0074 per U.S. dollar at 5 p.m. Toronto time. It appreciated earlier to C$1.0002, the strongest since May 15, the last time the two currencies were at parity. One Canadian dollar buys 99.27 U.S. cents.

Commodities

• Oil Oil rebounded from the lowest close in almost three weeks in New York before a report that may show hiring in the U.S. increased. A tropical storm formed southeast of production platforms in the Gulf of Mexico.
  • Oil for September delivery increased as much as 50 cents to $87.63 a barrel in electronic trading on the New York Mercantile Exchange and was at $87.62 at 1:20 p.m. Singapore time. The contract yesterday fell $1.78 to $87.13, the lowest close since July 13. Prices are 2.8 percent lower this week and down 11 percent this year.

• Gold Gold may snap a four-day decline, trimming its worst weekly performance in six, before data that could show employers in the U.S. didn’t hire enough workers to lower the jobless rate, boosting the chances of more stimulus.
  • Spot gold traded at $1,590.15 an ounce at 11:41 a.m. in Singapore, after dropping 0.3 percent to the lowest level since July 25. Holdings in exchange-traded products expanded for a third day yesterday, climbing to a two-week high of 2,397.222 metric tons, data compiled by Bloomberg showed.

Equities

• Asian stocks fell for a third day after the European Central Bank failed to deliver immediate action to stem the debt crisis and amid speculation China’s monetary authorities will be slow to ease policy. Sharp (6753) Corp. led technology shares lower after it forecast a wider loss.
  • The MSCI Asia Pacific Index fell 1.1 percent to 116.70 as of 1:51 p.m. in Tokyo, poised to drop for a third day. Almost four stocks declined for each that rose. The measure has gained 0.7 percent this week. Investors are awaiting U.S. jobs data today, which may give clues to the Federal Reserve’s next steps.

• European stocks fell for a second day, driving the benchmark index to a one-week low, after central banks in Europe, China and the U.S. this week failed to take immediate steps to boost a slowing global economy.
  • The MSCI Emerging Markets Index (MXEF) lost 0.7 percent to 938.68 as of 12:12 p.m. in Hong Kong. The measure has declined 0.3 percent this week, poised to snap two straight weekly gains. European Central Bank President Mario Draghi yesterday declined to intervene in bond markets, while China’s central bank said it will pursue a “prudent” policy, and the Federal Reserve a day earlier refrained from adding fresh stimulus.

• U.S stocks fell, sending the Standard & Poor’s 500 Index down for a fourth straight day, after European Central Bank President Mario Draghi failed to reassure investors on immediate efforts to bolster the economy.
  • The S&P 500 (SPX) retreated 0.7 percent to 1,364.93 at 4 p.m. New York time, dropping 1.5 percent in four days.