• The U.S. dollar fell in choppy trading on Thursday as investors took profits from a rally that sent the greenback to its highest levels of the year and awaited payrolls data for April.
The dollar index fell 0.13 percent to 92.395, below Wednesday’s 2018 high of 92.834, with the euro up 0.29 percent to $1.1985.
• The recent recovery in the dollar has raised hopes that currency turbulence for European corporates will now subside, after first quarter earnings took a hit from the stronger euro.
• U.S. Treasury Secretary Steve Mnuchin said on Friday a trade delegation he is leading in China has been having very good conversations.
He made the comments to reporters as he left his Beijing hotel for the second and likely final day of trade talks in China.
The discussions, led by Mnuchin and Chinese Vice Premier Liu He, are expected to cover a wide range of U.S. complaints about China's trade practices, from accusations of forced technology transfers to state subsidies for technology development.
• U.S. President Donald Trump on Thursday praised his relationship with Chinese President Xi Jinping as officials from the world’s two largest economies began trade talks in Beijing, while state media said China would stand up to U.S. bullying.
A breakthrough deal to fundamentally change China’s economic policies is viewed as highly unlikely during the two days of talks, though a package of short-term Chinese measures could delay Washington’s decision to impose tariffs on about $50 billion worth of Chinese exports.
The discussions, led by U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He, are expected to cover a wide range of U.S. complaints about China’s trade practices, from accusations of forced technology transfers to state subsidies for technology development.
• The U.S. trade deficit narrowed sharply in March as exports increased to a record high amid a surge in deliveries of commercial aircraft and soybeans, bolstering the economy’s outlook heading into the second quarter.
While other data on Thursday showed a modest increase in new applications for jobless benefits last week, the number of Americans receiving unemployment aid fell to its lowest level since 1973, pointing to tightening labor market conditions.
The Commerce Department said the trade deficit tumbled 15.2 percent to a six-month low of $49.0 billion in March. The trade gap widened to $57.7 billion in February, which was the highest level since October 2008.
• The U.S. economy is expanding at a 4.0 percent annualized rate in the second quarter in the wake of the latest data on domestic vehicle sales, trade balance and factory orders, the Atlanta Federal Reserve’s GDPNow forecast model showed on Thursday.
• The White House said on Thursday it would welcome the release of three Americans imprisoned in North Korea before a planned summit between U.S. President Donald Trump and North Korean leader Kim Jong Un in a few weeks, but could not confirm any reports on the subject.
• The White House warned China Thursday of "consequences" for its ongoing militarization of the hotly contested waters of the South China Sea.
• U.S. President Donald Trump’s new chief lawyer said on Thursday that if his client agrees to an interview with Special Counsel Robert Mueller, it should be limited to a few hours and focus on Russian tampering in the 2016 election.
• The recent recovery in the dollar has raised hopes that currency turbulence for European corporates will now subside, after first quarter earnings took a hit from the stronger euro.
• Oil prices rose on Thursday, boosted by OPEC production cuts and the potential for new U.S. sanctions against Iran, but gains were limited by growing U.S. crude inventories.
Brent crude futures LCOc1 rose 26 cents to settle at $73.62 a barrel, a 0.35 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 rose 50 cents to settle at $68.43 a barrel, a 0.74 percent increase.
• Pressure restrictions on TransCanada Corp’s (TRP.TO) Keystone oil pipeline were lifted on Tuesday in a letter issued by U.S. pipeline safety regulators, a spokesman for the agency told Reuters on Thursday.
It was not immediately clear what current flow rates are, said Darius Kirkwood, a spokesman for the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA).
Reference: Reuters, CNBC
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