Today’s News
Asian markets edged lower on Friday, driven by political unrest in South Korea and caution ahead of the U.S. nonfarm payrolls report, which could influence expectations for a Federal Reserve rate cut this month.
Image Source: Bloomberg
The MSCI Asia-Pacific index outside Japan slipped 0.3%, with South Korea’s KOSPI tumbling 1.7% and the Korean won weakening 0.8% to 1,425.42 per dollar, moving closer to its recent low of 1,443.4. The decline follows President Yoon Suk Yeol’s imposition of martial law earlier in the week. The opposition Democratic Party reported numerous warnings about another potential martial law declaration, according to Yonhap news agency.
In contrast, Chinese blue-chip stocks rose 0.2%, and Hong Kong’s Hang Seng index gained 0.4%. Japan’s Nikkei fell 0.6% but maintained a 2.5% weekly gain as data revealed the fastest local wage growth in 32 years. However, markets still expect no rate hike from the Bank of Japan this month.
All Eyes on U.S. Payrolls
The U.S. nonfarm payrolls report, due later Friday, remains the market’s focus. Economists expect an increase of 200,000 jobs in November, rebounding from October’s hurricane-affected 12,000 gain. The unemployment rate is predicted to rise slightly to 4.2% from 4.1%.
Chris Weston, head of research at Pepperstone, warned of potential market reactions: “An outcome that comes in below 100k with a U/E rate at 4.2%, and certainly at 4.3%, could see equity under pressure even if this all but assures a 25bp rate cut. Some may see a risk that an NFP print above 250k with the U/E rate at or below 4.1% could lead to markets derisking as it raises the possibility that the Fed hold off from easing on 18 Dec.”
Futures currently price a 70% chance of a December 18 rate cut, with additional cuts factored in for 2025. A stronger-than-expected jobs report, however, could challenge this outlook.
Dollar and Global Markets
The U.S. dollar, which fell 0.6% overnight against major currencies, remained near three-week lows at 105.84. Despite its recent weakness, traders remain cautious given the dollar’s prolonged bullish positioning. The euro was steady at USD 1.0580 after a sharp rally, following French Prime Minister Michel Barnier’s resignation amid the country’s political saga.
On Wall Street, stocks retreated from record highs ahead of the payrolls report. However, the tech-heavy Nasdaq has gained 2.5% for the week, adding USD 1 trillion to its market capitalization.
Bitcoin Volatility and Crypto News
Bitcoin, which recently crossed the USD 100,000 mark for the first time, faced profit-taking on Friday. It fell as low as USD 92,092 before stabilizing around USD 98,265, up 1% for the day. Tony Sycamore, an analyst at IG, noted, “This spike in volatility over the last 24 hours has the hallmarks of a classic blow-off top. While we don’t see this as the end of the Bitcoin bull run, it does signal we are entering a consolidation phase in the days/weeks ahead.”
Adding to the crypto momentum, U.S. President-elect Donald Trump announced the appointment of David Sacks, former COO of PayPal, as the White House Artificial Intelligence and Crypto Czar.
Commodities and Bonds
In commodities, oil prices extended their decline, with U.S. West Texas Intermediate crude falling 0.2% to USD 68.18 per barrel after OPEC+ delayed its planned output hike to April. Gold held in a tight range, slipping 0.4% to USD 2,621.89 an ounce, down 1.2% for the week.
In the bond market, U.S. Treasury yields were steady, with the two-year yield at 4.15% and the 10-year yield at 4.178%. The bond market has shown little movement this week, reflecting caution ahead of key economic data.
Other News
Oil Prices Dip Amid Extended OPEC+ Cuts
Oil prices fell slightly as OPEC+ extended deep supply cuts to 2026, citing weak global demand, particularly from China. Brent crude dropped 0.1%
Currencies Jittery Amid Turmoil, U.S. Jobs Eyed
Major currencies wavered as political upheavals in France and South Korea unsettled markets, while traders awaited the U.S. jobs report for November.
BRICS to Proceed with Payment System Despite Threats
Russian Deputy Foreign Minister affirmed that BRICS will continue developing its payment system, despite U.S. President-elect Donald Trump’s threat of 100% tariffs.
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