London (AFP) – Stock markets mostly retreated and the dollar steadied Friday as traders awaited key US jobs data for signals on the health of the world’s largest economy and the outlook for interest rates. Oil prices jumped around 2.5 percent as analysts expect the United States to soon announce more sanctions against Russia, further disrupting its crude exports and therefore tightening supplies.
Tokyo, Hong Kong, and Shanghai stock markets closed lower Friday. London dropped nearing the halfway stage while in the eurozone, Frankfurt and Paris gained. The pound remained under pressure after Thursday hitting levels not seen since late 2023 against the dollar on worries about the UK economy. UK 10-year bond yields remained high after surging to their highest level since the 2008 global financial crisis, amid talk the government may have to make spending cuts or hike taxes to help repay state debt.
“The global bond selloff showed few signs of letting up…with long-term borrowing costs continuing to move higher,” noted Jim Reid, managing director at Deutsche Bank. “Even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he added.
Friday’s US non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health. “Markets will be watching closely for any signs of inflationary pressures building with the wage growth figure followed closely,” said Joshua Mahony, chief market analyst at financial services firm Scope Markets. The Fed indicated last month it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.
That came as speculation began swirling that Donald Trump’s plans to slash taxes, regulations, and immigration — and to impose harsh tariffs on imports — on re-entering the White House would reignite prices.
On the corporate front, shares in French video game giant Ubisoft shed around six percent on the Paris stock exchange, after the company said it was exploring its options following another delay in its “Assassin’s Creed” franchise. Uniqlo owner Fast Retailing also struggled, with shares sliding in Tokyo after the company reported a weak quarterly performance in China.
**Key figures around 1100 GMT:**
– London – FTSE 100: DOWN 0.2 percent at 8,299.70
– Paris – CAC 40: UP 0.2 percent at 7,506.93
– Frankfurt – DAX: UP 0.2 percent at 20,362.05
– Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)
– Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)
– Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)
– New York – Dow: closed on Thursday
– Euro/dollar: UP at $1.0303 from $1.0296 on Thursday
– Pound/dollar: DOWN at $1.2292 from $1.2293
– Dollar/yen: UP at 158.11 yen from 157.96 yen
– Euro/pound: UP at 83.81 pence from 83.75 pence
– Brent North Sea Crude: UP 2.5 percent at $78.87 per barrel
– West Texas Intermediate: UP 2.6 percent at $75.82 per barrel
© 2024 AFP
