The global stocks are mixed on Friday ahead of US jobs data. The European equities declined, US futures were steady and bonds were mostly in a holding pattern as investors await the key American jobs report.
Investors have turned their attention to today’s US private sector employment data. The expectations are for growth of newly opened jobs in June to 153,000. Analysts predict the overall growth of all jobs in the past month, not including the agriculture sector, to 160,000.
Less than expected data may give the US Federal Reserve additional proves to cut key interest rates at its end-of-month meeting.
Markets continue to monitor the trade friction between China and the United States. The US government has filed a lawsuit for the Chinese technology company Huawei Technologies, which allegedly blames Washington for illegally banning the company. The company was at the center of the fierce US-China trade war that hit the capital markets. More recently, President Donald Trump has agreed to weaken the restrictions on Huawei after meeting with Chinese counterpart Xi Jinping at the G20 summit.
Asian markets recap
Most of the index in the Asia-Pacific region ended the last trading session of the week into the green with the investors expecting the release of data from the US labor market in June.
In China, the mainland index Shanghai Composite managed to recover slightly from the decline during the previous session, adding 0.19% to 3,011.06 points. Hong Kong’s benchmark Hang Seng dropped by 0.08% to 28,772.48.
In Japan, the blue-chip index on the Tokyo Stock Exchange, Nikkei 225, advanced by 43.93 points, or 0.20%, to 21,746.38 points. The best performers of the session were Familymart (+4.19%), Dainippon Screen Mfg (+3.88%) and Seven & i Holdings Co (+3.60%), while on the flip side were Rakuten Inc (-3.09%), Chubu Electric Power Co (-1.78%) and The Kansai Electric Power (-1.74%).
In South Korea, the local index Kospi rose by 0.09% to 2,110.59 points. Shares of Samsung Electronics fell by more than 1% after the company posted a 56% decline in the second-quarter earnings. The largest manufacturer of smartphones and memory chips in the world said its operating profit had reached 6.5 trillion KRW (5.5 billion USD), which is slightly better than expected by analysts 6 trillion KRW. Experts say the entire chip sector is going through a stock-adjusting period, which keeps demand low and leads to a drop in supply.
In Australia, the S&P ASX 200 local index grew by 33.30 points, or 0.50%, to 6751.30 points.
European markets mid-session recap
European stocks traded lower Friday with the pan-European Stoxx 600 declining by 0.4% midway through the morning session, with basic resources shedding 1.8% while telecoms led the resistance with a 0.6% rise. Dismal German industrial orders data on Friday morning, compounding a woeful week for Europe’s largest economy, provided further cause for investors to lock in.
German index DAX 30 is down by 33.64 points, or 0.27%, to 12,596.26 points at 10:00 GMT. Industrial stocks were down 1.5% following the release of the country’s industrial orders, which fell far more than expected in May, and likely to remain weak in the coming months. The stocks of Deutsche Bank are up by 0.3% after the financial institution announced plans to create a separate “corporate bank” unit which will include its transaction banking activities. The stocks of Commerzbank, which is the second largest financial institution in the country, are also marginally higher by 0.1%. Carmakers are into the red with Volkswagen and Daimler declining by 0.6% and 0.2% respectively, while chemical giant BASF is down by 0.9%.
French index CAC 40 is down by 0.37% to 5,599.65 points. Financial stocks are on the rise with the shares of Societe Generale adding 0.27%, while BNP Paribas gaining 0.01%. Carmakers are down with Renault and Peugeot, declining by 0.8% and 0.6%, respectively. The aircraft manufacturer Airbus is down by 0.5%.
Italian index FTSE MIB edged lower by 0.41% to 22,029.20 points. The shares of the largest local bank UniCredit is down by 1.5%.
British blue-chip index FTSE 100 is down by 0.17%, to 7,590.87 points. Britain’s main index inched lower on Friday as heavyweight miners fell due to weakness in China’s iron ore futures and homebuilder shares slipped following a weak trading update from building supplier SIG. SIG tumbled nearly 9% as it posted lower like-for-like sales for the first half of the year and flagged a “marked deterioration” in UK construction activity this year. Aviation servicing company John Menzies plummeted 16% to a more than 3-year low after it warned of lower annual profit, mainly due to weak cargo volumes and flight schedule reductions.
Wall Street pre-session recap
Wall Street stock index futures pointed to a slightly lower open on Friday as investors focused on the release of a key monthly jobs report.
Around 6:30 a.m. ET, Dow futures implied a negative open of more than 20 points. Futures on S&P 500 and Nasdaq were also slightly weak.