US equity indices were little changed last night, while the dollar index rebounded more than 0.6% to 99.80 from a three-month low of 99.20 overnight.

A stronger US dollar sent the Japanese yen lower, and the Nikkei 225 index opened higher this morning.  

China’s Caixin manufacturing purchasing manager’s index, which measures the performance of small to medium size entrepreneurs, is due later today. This data, combined with official manufacturing PMI announced earlier this week, could paint a better picture of China’s economic outlook.

China’s market will resume trading today after five days’ break for CNY. Apparently there is plenty of news to be digested by Chinese investors after the long holiday break.

Key macro data to be watched tonight is US non-farm payrolls, which is expected to increase by 175k according to a Reuters forecast. Significant deviation between the actual number and the forecast can cause considerable volatility in equities and the dollar. Generally, a higher than expected non-farm payroll reading is positive to both equities and the US dollar.

Sterling fell to the $1.25 area against the US dollar after the Bank of England decided to keep its interest rate unchanged and revised its growth forecast up to 2% from 1.4%.

Two of Singapore’s blue chip companies, SIA Engineering and Hutchison Port will announce their fourth quarter earnings after market hours today. And there are six more due next week. As we are getting closer to the peak of earnings season, investors should be more vigilant of earnings surprises.

US Dollar Index

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