London (AFP) – Stock markets diverged and global bonds stabilised on Thursday as investors looked to US jobs data to cement rate-cut bets. The latest weekly data released Thursday showed more first-time claims for unemployment benefits in the United States than analysts had expected, while figures from payroll firm ADP showed slowing private sector hiring in August.
Investors are now looking to US government data due out Friday amid hopes for further cuts to interest rates by the Federal Reserve. “All eyes will be on Friday’s nonfarm payrolls report with bad news likely to be interpreted as good news as it will raise the market probability that the Fed cuts rates,” noted Victoria Scholar, head of investment at Interactive Investor.
David Morrison, senior market analyst at financial services provider Trade Nation, said the employment data “is likely to play a central role in shaping the direction of equities, currencies and commodities over the coming fortnight.” Wall Street opened mixed, with the Dow dipping while the S&P 500 and Nasdaq Composite edged higher. Traders brushed off news that President Donald Trump’s administration asked the US Supreme Court for an expedited ruling preserving tariffs after a lower court ruled against them last week.
In Europe, Frankfurt rose 0.6 percent despite Germany’s preeminent economic institutes cutting their growth forecasts. Paris stocks slid, weighed down by a nine-percent drop in shares of pharmaceutical firm Sanofi after a disappointing trial of its drug for the skin condition atopic dermatitis. Elsewhere, the global bond market eased further after yields had earlier in the week jumped on concerns over mounting government debt.
“There are signs that the bond market rout could be over,” said Kathleen Brooks, research director at trading group XTB. She warned that risks still loomed, particularly a confidence vote in France next week that could topple the minority government. A solid auction of 30-year Japanese government bonds offered further reprieve after yields had risen to record highs. Tokyo’s stock market closed higher, while Hong Kong and Shanghai each dropped more than one percent as a tech-driven rally ran out of steam. Analysts said the decline followed a Bloomberg report that China’s financial regulators may implement measures to cool the pace of the rally in stocks.
Oil prices extended losses Thursday amid anticipation of excess supply in the coming months as OPEC+ nations are expected to further unwind production cuts. In company news, shares in Japanese motor maker Nidec tumbled 22 percent after it launched a probe into “improper accounting” at its Chinese subsidiary.
– Key figures at around 1330 GMT –
New York – Dow: DOWN less than 0.1 percent at 45,241.75 points
New York – S&P 500: UP 0.1 percent at 6,456.29
New York – Nasdaq Composite: UP 0.2 percent at 21,539.91
London – FTSE 100: UP 0.3 percent at 9,204.32
Paris – CAC 40: DOWN 0.3 percent at 7,698.71
Frankfurt – DAX: UP 0.6 percent at 23,736.12
Tokyo – Nikkei 225: UP 1.5 percent at 42,580.27 (close)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 25,058.51 (close)
Shanghai – Composite: DOWN 1.3 percent at 3,765.88 (close)
Euro/dollar: DOWN at $1.1652 from $1.1663 on Wednesday
Pound/dollar: DOWN at $1.3440 from $1.3445
Dollar/yen: UP at 148.45 yen from 148.12 yen
Euro/pound: DOWN at 86.69 pence from 86.75 pence
West Texas Intermediate: DOWN 1.4 percent at $63.08 per barrel
Brent North Sea Crude: DOWN 1.4 percent at $66.63 per barrel
© 2024 AFP
