Dollar Gains With Commodities Before Jobs as Ruble Slides
New York (May 2) The dollar strengthened and commodities rose before a U.S. jobs report. Spanish and Italian yields dropped to records, while the ruble weakened and Ukraine bonds declined as the government in Kiev sent troops to retake a rebel stronghold.
The dollar rose against most of its major counterparts, advancing 0.2 percent to 102.49 yen at 7:50 a.m. in New York. The S&P GSCI gauge of 24 raw materials climbed 0.5 percent led by oil and wheat. Italy’s 10-year bond yield fell three basis points to 3.04 percent and Spain’s rate dropped to 2.98 percent. The Stoxx Europe 600 Index and Standard & Poor’s 500 Index futures were little changed. Royal Bank of Scotland Group Plc rallied after profit tripled. The ruble slid 0.5 percent against the dollar.
U.S. nonfarm payrolls probably climbed last month by the most since November and the jobless rate fell, economists said before a Labor Department report. Ukraine sent armored vehicles and artillery to retake Slovyansk, a stronghold for pro-separatist forces, defying a demand by Russian President Vladimir Putin to pull back troops.
“Markets are going into the report looking for a good number,” Ian Stannard, the head of European currency strategy at Morgan Stanley in London said, referring to the U.S. jobs data. “It may make it difficult for a positive surprise to be generated. However, even if we see a weaker print, I think any dollar setback will be temporary.”
U.S. employers probably added 218,000 workers to payrolls in April, up from an increase of 192,000 in March, according to the median estimate in a Bloomberg survey of 94 economists. The unemployment rate probably slipped to 6.6 percent, according to the median estimate.
Fed Stimulus
The Federal Reserve, which announced the fourth straight $10 billion cut to its monthly bond-buying April 30, says the job market in the world’s largest economy is improving.
Three shares rose for every two the declined in the Stoxx 600, with trading volumes 8.1 percent below the 30-day average, data compiled by Bloomberg show.
