Global Stocks Steady Ahead of U.S. Labor Data
05 February 2016 - 08:40PM
Dow Jones News
Global stocks were little changed Friday as investors awaited a
key reading on the U.S. labor market.
The Stoxx Europe 600 was up 0.2% in early trade, led by the
recently hit auto sector, while U.S. stock futures were flat after
Wall Street ended with modest gains. Futures prices don't
necessarily reflect market moves after the opening bell.
The nonfarm payrolls report, due later Friday, is an important
barometer used by Federal Reserve officials as they try to
determine the strength of the U.S. economy and the course for
interest rates this year.
The U.S. central bank raised benchmark interest rates in
December for the first time in nearly a decade, and had signaled
more rate rises in the year to come. But recent soft economic data
and dovish comments from Fed officials have raised doubts the bank
will be able to raise rates this year, sending the dollar to its
lowest level since November.
"We're in a period right now where non-U. S. economic conditions
are weakening, where global financial conditions are tightening,
and I'm working with my team assessing the impact of those on the
U.S., " said Federal Reserve Bank of Dallas President Robert
Kaplan. "It's worth being patient, watchful, vigilant," he
said.
U.S. manufacturing data and earnings guidance has been weak this
year, but jobs data has continued to show signs of strength. The
Labor Department will report how many jobs U.S. employers added in
January, as well as the unemployment rate and a measure of wage
inflation.
The euro was up 0.1% against the dollar at $1.1205, while the
dollar was down 0.2% against the yen at ¥ 116.7540.
The yield on the 10-year Treasury note was steady at 1.838%.
Markets in Asia were mostly lower ahead of the jobs report and
the Lunar New Year holiday next week.
Japan's Nikkei Stock Average fell 1.3% as the yen hit its
highest level against the dollar in over a year. Japan's stock
market has now given back all of the gains it made after the Bank
of Japan's surprise interest rate cut last Friday.
China's Shanghai Composite Index fell 0.6% ahead of the release
of its foreign reserves data on Sunday, while Australia's S&P
ASX 200 edged down 0.1% as commodities traded mostly flat.
Brent crude oil was last down 0.6% at $34.24 a barrel. Spot gold
in London was up 0.1% at $1154.90 an ounce.
In corporate news, ArcelorMittal, the world's largest
steelmaker, said it would issue $3 billion worth of shares after
facing a near $7 billion fourth-quarter net loss. Shares fell
7.9%.
French bank BNP Paribas SA also reported a sharp fall in
fourth-quarter profit, but shares gained 3%.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
February 05, 2016 04:25 ET (09:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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