The number of initial jobless claims in the US fell to 340,000, the lowest level since March 2020. Investors are now focusing on nonfarm payrolls data. Economists expect the number of workers to increase by 720,000 a month and the unemployment rate to fall from 5.4% to 5.2%. If the data is above those expectations, the dollar index will rise substantially, and major stock indices will decrease. The US stock market ended Thursday’s trading higher due to the strength of the oil and gas, health care, and utilities sectors. The Dow Jones increased by 0.37%, the S&P 500 increased by 0.28%, and the NASDAQ added 0.14%.
European stock indices increased on Wednesday as investors bet that the global economic recovery would continue, even as central banks considered cutting stimulus. The Stoxx Europe 600 composite index of the region’s largest companies added 0.3%. The current value is very close to its all-time high. The British FTSE 100 added 0.2%, the German DAX and the French CAC 40 increased by 0.1%, the Italian FTSE MIB added 0.2%. Meanwhile, Spain’s IBEX 35 lost 0.1%.
Oil prices jumped sharply yesterday. The pressure on prices triggers a sharp decrease in US inventories, the data on which was released on Wednesday. Despite an increase in production by OPEC+ countries, market supply is still far below demand. Optimism about economic recovery and the weakening of the US dollar also contributed to the growth of quotes.
The situation with gold has not changed much in recent days. Fundamentally, quotes will rise as long as the Federal Reserve maintains a soft monetary policy. But traders have to be careful, as good labor market data can make the dollar index and government bond yields rise, which in turn will make gold prices fall.
Japanese stocks jumped on Friday after officials had said Prime Minister Yoshihide Suga would resign. Japan’s TOPIX stock index jumped to a 30-year high, while the Nikkei added 1.87%.
Main market quotes:
- S&P 500 (F) 4,536.95 +12.86 (+0.28%)
- Dow Jones 35,443.82 +131.29 (+0.37%)
- DAX 15,840.59 +16.30 (+0.10%)
- FTSE 100 7,163.90 +14.06 (+0.20%)
- USD Index 92.23 −0.22 (−0.23%)
Important events for today:
- Australia Retail Sales (m/m) at 04:30 (GMT+3);
- UK Composite PMI (m/m) at 11:30 (GMT+3);
- UK Services PMI (m/m) at 11:30 (GMT+3);
- US Nonfarm Payrolls (m/m) at 15:30 (GMT+3).
