U.S. futures steady in cautious trade; Dow Jones up 0.02%

U.S. stock futures pointed to a steady open on Friday, as supported Thursday's upbeat U.S. economic reports still supported equity markets, although indications the Federal Reserve could begin tapering its asset purchases in the near future weighed. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.02% gain, S&P 500 futures signaled a 0.03% dip, while the Nasdaq 100 futures indicated a 0.02% rise. 

U.S. equities found support after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November from a reading of 51.8 in October.

A separate report showed that the number of people filing for initial jobless benefits last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000. 

The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected. 

Financial stocks were expected to be active, after Goldman Sachs said its currency trading business didn’t incur a loss in the last quarter, contradicting previous reports. 

Reuters had reported on Thursday that the bank posted more than USD1 billion in market-making losses on currency products in the third quarter. Goldman shares rose 0.19% in after-hour trade. 

Retailers were also likely to be in focus, after Target, which opened its first stores in Canada in March, posted third-quarter profit on Thursday that trailed analysts’ estimates after the loss in its Canadian unit was wider than expected. 

Shares in the discount retailer slid 0.30% in extended trading. 

Gap shares tumbled 1.10% pre-market as the specialty-apparel retailer maintained an annual profit forecast range signaling that the crucial holiday-shopping quarter may fall short of analysts’ expectations. 

In the tech sector, Intel plummeted 1.47% amid reports it is providing increased access to its manufacturing plants for other chipmakers, in a move to boost its revenue sources as it faces greater competition. 

Other stocks expected to be in focus included Foot Locker and PetSmart, scheduled to report earnings later in the day. 

Across the Atlantic, European stock markets were mixed to higher. The EURO STOXX 50 inched 0.01% higher, France’s CAC 40 rose 0.32%, Germany's DAX eased up 0.01%, while Britain's FTSE 100 dipped 0.03%. 

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.49%, while Japan’s Nikkei 225 Index edged up 0.10%.

Read More

Dollar mixed vs. rivals, remains supported by U.S. data

The dollar was mixed against the other major currencies on Friday, but remained supported as positive U.S. economic reports on Thursday fuelled further expectations for the Federal Reserve to begin scaling back its stimulus program in the near future.

During European morning trade, the euro edged higher against the dollar with EUR/USD up 0.24% at 1.3513.

The euro gained ground after the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month. 

The data conforted the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month. 

The single currency also remained supported after European Central Bank President Mario Draghi downplayed speculation that the bank was actively considering whether to cut deposit rates into negative territory. 

Meanwhile, demand for the dollar remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to 323,000. 

The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.

The greenback was steady against the pound, with GBP/USD up 0.02% at 1.6202. 

The dollar was little changed against the yen with USD/JPY inching up 0.01% at 101.17, and lower against the Swiss franc with USD/CHFslipping 0.19% at 0.9111.

The dollar was broadly higher against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.36% at 1.0556, AUD/USD sliding 0.67% at 0.9174 and NZD/USD edging down 0.15% at 0.8193. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% at 80.90.

Read More

Forex - EUR/USD pushes higher on strong Ifo report

The euro pushed higher against the U.S. dollar on Friday, after the release of positive German business climate data, although indications the Federal Reserve could begin tapering its stimulus program in the coming months still supported the greenback. 

EUR/USD hit 1.3527 during European morning trade, the pair's highest since Wednesday; the pair subsequently consolidated at 1.3515, gaining 0.26%. 

The pair was likely to find support at 1.3359, the low of November 12 and resistance at 1.3632, the high of October 4. 

In a report, the Ifo Institute for Economic Research said Germany's business climate index rose to a 19-month high of 109.3 in November, from a reading of 107.4 the previous month. Analysts had expected the index to rise to 107.7 this month. 

The data conforted the idea that Germany's economic recovery is gaining momentum, after data on Thursday showed that manufacturing activity in the euro zone's biggest economy rose to a 29 month peak this month. 

The single currency also remained supported after European Central Bank President Mario Draghi downplayed speculation that the bank was actively considering whether to cut deposit rates into negative territory. 

Meanwhile, demand for the dollar remained supported after preliminary data on Thursday showed that U.S. manufacturing activity improved to an eight-month high of 54.3 in November, while a separate report showed that jobless claims last week fell by 21,000 to a seasonally adjusted 323,000. 

The minutes of the Fed's October meeting showed earlier in the week that the central bank could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected. 

The euro was also higher against the pound with EUR/GBP rising 0.26%, to hit 0.8343.

Read More