Daily Market Outlook

Currencies

• EUR/USD The 17-nation currency traded 0.3 percent from a three-week low versus the dollar before data next week that may show German exports fell and growth in French industrial production slowed, adding to evidence that the fiscal woes are hampering the region’s economies.
  • The currency was little changed at $1.3067, after sliding to $1.3035 yesterday, the weakest level since March 15.

• EUR/JPY The euro headed for the biggest weekly drop against the yen in seven months as Spain’s rising borrowing costs fueled concern that the region is failing to contain its debt crisis.
  • The euro lost 0.1 percent to 107.48 yen at 1:17 p.m. in Tokyo from 107.61 in New York yesterday, extending its decline this week to 2.8 percent, set for the steepest five-day slide since the week ended Sept. 9.

• USD/CAD Canada’s dollar registered its first weekly gain in a month against its U.S. counterpart after a government report showed employers added the most jobs since 2008 last month, adding to evidence the economy is firming.
  • Canada’s currency, nicknamed the loonie, gained 0.3 percent to 99.31 cents per U.S. dollar at 5 p.m. in Toronto, extending the weekly gain to 0.6 percent. It had lost as much as 0.4 percent to 99.98 cents, the lowest level this week. One Canadian dollar buys $1.0070.

Commodities

• Oil gained for the first time in three days as claims for U.S. unemployment benefits dropped to a four-year low and equities pared losses, raising hopes that demand will grow in the world’s leading user of crude.
  • Crude for May delivery gained $1.84 to settle at $103.31 a barrel on the New York Mercantile Exchange. Prices rose 29 cents this week. The price ranged from $101.37 to $103.40.

• Gold may climb for a second day, trimming the first weekly drop in three, as Spain’s rising borrowing costs fueled concern that the region is still struggling to contain its debt crisis, spurring haven demand.
  • Bullion for immediate delivery was little changed at $1,630.90 an ounce at 10:37 a.m. Seoul time. While the price rose 0.6 percent to $1,631.23 yesterday, the biggest daily gain since March 26, it’s still 2.2 percent lower this week.

Equities

• Asian stocks fell, with the regional benchmark index extending its biggest weekly drop this year, as slowing German factory output fueled concern Europe’s economy is contracting, damping the outlook for export earnings.
  • The MSCI Asia Pacific Index fell 0.3 percent to 124.97 as of 10 a.m. in Tokyo, with about the same number of stocks falling as rising. For the week, the measure is down 1.3 percent, the biggest weekly decline since the period ended Dec. 16.

• European stocks fell for a third week, the longest losing streak since August, as Spain’s rising borrowing costs boosted concern the euro-area has yet to contain its debt crisis, and the U.S. Federal Reserve damped expectations for further monetary stimulus.
  • The Stoxx Europe 600 Index (SXXP) declined 1.6 percent to 259.07 this week. The benchmark measure climbed 7.7 percent in the first quarter, its best performance during the first three months of the year since 2006, as the ECB disbursed 1 trillion euros ($1.3 trillion) in three-year loans to the region’s financial institutions and U.S. economic reports beat estimates.

• U.S stocks slid this week, giving the Standard & Poor’s 500 Index its biggest decline of the year, after the Federal Reserve signaled it will refrain from further monetary stimulus and concern about Europe intensified.
  • The S&P 500 fell 0.7 percent for the week to 1,398.08, after reaching the highest level since May 2008 on April 2.
  • The Dow Jones Industrial Average lost 151.90 points, or 1.2 percent, to 13,060.14.