Most Asian markets turned lower Friday following a healthy run-up in the week, tracking a sell-off on Wall Street where a plunge in retail giant Macy’s fanned concerns about the key US retail sector.
Optimism has been high the past four days on solid US jobs data and moderate Emmanuel Macron’s landslide French presidential win Sunday, pushing some markets to multi-year highs.
But traders took a step back ahead of the weekend with confidence rattled by a series of below-par Chinese data and Donald Trump’s shock firing of the head of the FBI, which some fear could lead to a crisis that will knock the president’s economy-boosting agenda offline.
On Thursday New York’s three main indexes turned negative after Macy’s announced a 39 percent fall in net profit, its latest in a series of weak readings that have have underscored the deterioration of bricks-and-mortar stores due to the rise of e-commerce.
The dollar turned lower against its major peers, having enjoyed a surge Thursday on comments from a top Federal Reserve official backing three more interest rates this year.
The unit “is weighed down by the Trump/Comey sideshow which has seen the greenback move lower against” major currencies, Stephen Innes, a senior trader at forex firm OANDA, said in a commentary.
And on oil markets both main contracts pressed on with their recovery from last week’s sharp losses, with investors cheering a bigger-than-expected drop in US inventories and signs an OPEC output cut was kicking in.
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