US equity futures rose on Friday, signaling a positive start to trading after Thanksgiving, as the S&P 500 heads toward its best month since February. Futures tied to the index pointed to modest gains, following a 5% rise in November and a 26% surge year-to-date, fueled by strong performances from tech giants and international market inflows
On the other hand, the yen went up to 151 per dollar after Tokyo's inflation rate data came out higher than forecasts one month ago. The annual average consumer inflation rate was reported to maintain pressures at an above-forecast rate to core inflation that stripped out fresh food and energy prices and fueled expectations of an early monetary policy tightening by the Bank of Japan (BOJ). The market price suggests a 60 percent probability of a 25 bps rate hike when the BOJ policymakers meet in December, which could be a significant policy change.
On the international front, European shares were flattish, although mining shares advanced as investors await the US Federal Reserve decision and signs that Beijing intends to step up credit growth. US Treasury yields fell in thin post-Thanksgiving trade as the dollar was set for its worst week in three months as the market anticipated the Fed's policy switch to a cut.
Asian markets looked somewhat curious or rather complicated to categorize because that part of the world, including Japan and southern Asian countries, was on the list. Chinese equities rose as investors hoped for policy easing, while Japan and South Korea fell, with the latter having its interest rate cut, causing it to lose ground.
Investors continue to monitor impending core inflation reports and the next milestones of the key global monetary authorities on a constantly shifting macroeconomic map.
