Trading day in one post 05.05.2016

Asian markets were flat to lower on Thursday in the wake of a reading on China's economy showing growth in the services sector moderated and the U.S. dollar strengthened.

Down Under, the S&P/ASX 200 is trading flat, weighed by a 1.06 percent decline in the materials subindex. Those losses were offset by a pick-up in the energy subindex, which was up 1.02 percent, and financials, which rose 0.53 percent.

The mainland Chinese markets were mixed, with the Shanghai composite lower 0.15 percent and Shenzhen composite up 0.141 percent. In Hong Kong, the Hang Seng index shed 0.36 percent.

That followed the release of the China Caixin services purchasing mangers' index (PMI), which came in at 51.8 for April, continuing to show expansion, but marking a moderation from 52.2 in March. A reading above 50 indicates activity is growing, while one below that level suggests a contraction.

Markets in Japan, South Korea, Indonesia and Thailand were closed Thursday for public holidays. The Nikkei 225 finished down 3.1 percent on Monday, and has been closed since for public holidays.
In the currency market, the dollar index, which measures the greenback against a basket of currencies, continued its three-day rally, trading at 93.243 at 1:19 p.m. HK/SIN time, firming after dipping under 92 earlier this week to tap the lowest levels since January 2015.

The greenback's relative strength may be denting market sentiment.

"The backdrop for the market is dicey with the trajectory of the U.S. dollar likely a key driver of sentiment," DBS said in a note Thursday. "More often than not, U.S. dollar strength is associated with risk aversion and/or rate hike expectations, neither of which appears to be positive for risky assets."
A stronger dollar is also generally a negative for commodity prices, which are denominated in dollars.

U.S. crude futures jumped 2.06 percent to $44.69 a barrel, after settling up on 0.3 percent in U.S. trade Wednesday. Brent crude futures were also up 1.59 percent at $45.32, after settling 0.78 percent lower in the U.S. session.

The Nasdaq composite finished down 0.79 percent. The Dow Jones industrial average ended 0.56 percent lower, while the S&P 500 fell 0.59 percent, dragged down by energy and materials.

10:30 UK - Halifax house price index

11:00 EU - Economic bulletin

11:30 UK - Services PMI

15:30 USA - Initial jobless claims

15:30 Cadana - Building Permits

18:30 USA - FOMC Member Bullard speaks

Norwey and Switzerland - day off