International Economic News

🇺🇸 President Trump said he will dispatch Treasury Secretary Mnuchin and Trade Representative Lighthizer to China in the middle of this month to hold the next round of trade talks. The U.S.-China trade conflict after China pledged to "substantially" increase imports of U.S. agriculture, energy, industrial products and services.

🇺🇸 A U.S. Labor Department report showed nonfarm payrolls jumped by 304,000 jobs last month, the largest gain since February 2018 and beating economists’ expectations for an increase of 165,000.

🇺🇸 The Jan ISM manufacturing index unexpectedly rose +2.3 to 56.6, stronger than expectations of -0.1 to 54.0.  The Jan ISM prices paid fell -5.3 to 49.6, weaker than expectations of -0.6 to 54.3 and the steepest pace of contraction in nearly 3 years.

🇺🇸 Wall Street ended mixed on Friday, as optimism from a surge in January U.S. job growth was offset by a weaker-than-expected outlook from Amazon.com Inc that battered retail stocks.
* Dow +64 (+0.26%)
* S&P +2 (+0.09%)
* Nasdaq -17 (-0.25%)

 

€ European stocks were higher on optimism about progress in U.S.-China trade talks after China pledged to "substantially" increase imports of U.S. agriculture, energy, industrial products and services. However, the market was undercut on signs of weakness in European manufacturing activity after the German Jan Markit/BME manufacturing PMI was revised downward by -0.2 to 49.7 and the Italy Jan Markit/ADACI manufacturing PMI fell -1.4 to 47.8, both at the steepest pace of contraction in 5-1/2 years.

⛽ Oil prices rose about 3% on Friday on upbeat U.S. jobs data and signs that U.S. sanctions on Venezuelan exports have helped tighten supply, then extending gains after weekly data showed U.S. drillers cut the number of oil rigs
* Crude oil $55.26 (+1.46)
* Brent Crude $62.75 (+1.91)

🇨🇳 The China Jan Caixin (flash) manufacturing PMI fell -1.4 to 48.3, weaker than expectations of -0.1 to 49.6 and the steepest pace of contraction in nearly 3 years.

👑 Gold slipped on Friday, weighed down by robust U.S. jobs data, but remained on course for a second week of gains buoyed by the U.S. Federal Reserve's signal that it would pause its interest rate hikes. U.S. gold futures settled $3.10 lower at $1,322.10.

🌴FCPO (2299, -4) ended the week on a negative tone after a volatile trading session as traders digests the latest palm oil 1-31 Jan exports data. Despite cargo surveyor reporting a positive results, price action turned bearish as exports grew slower than expected. Meanwhile, recent strength in MYR and weaker related edible oil prices during Asia capped further upside momentum. From a technical view, critical support seen at 2275 with strong resistance at 2333. Till a breakout occurs, market may range  sideways ahead of CNY holidays.

🌱 U.S. soybean futures rallied to multi-month highs on Friday on news of renewed demand after China state-owned firms bought at least 1 million tonnes of U.S. soybeans on Friday, a day after high-level bilateral talks yielded progress toward a trade deal and a Chinese commitment to buy more U.S. soybeans. However, market's gains were limited as worries and uncertainties over massive soybean stockpiles and looming harvest of a large soy crop in Brazil remains intact. China agreeing to buy another 5 MMT of US soybeans, although details/timing is unknown.