Global stocks extend gains on Friday, as the investors continue betting on deeper support from the world’s biggest central banks and anticipate a near-term breakthrough in immigration talks between the US and Mexico.
Asian stocks went into the green on the last trading session of the week, while the European equities book solid gains despite a sharp reduction in Germany’s GDP forecast following notably weak export and industrial production data, as investors bet on a faster response from the ECB.
At the same time, the Wall Street futures edge higher ahead of May employment data that is expected to show the US economy added 185,000 new jobs at 8:30 am ET.
Reports of a potential breakthrough in talks between U.S. and Mexican officials yesterday in Washington helped Wall Street edge higher in the final hours of trading, with Vice President Mike Pence calling the second day of meetings “encouraging” and describing “some movement on their part” from the Mexican side.
Asian markets recap
Asian indexes ended the week with gains after the positive news on talks between the US and Mexico last night, as well as the continuing assessment of the latest statements by the senior central bankers.
Japanese index Nikkei 225 rose by 0.53% and ended the session at 20,884.71 points as gains in the Communication, Transport and Real Estate sectors led shares higher. The stocks of the robots’ maker Fanuc added 0.90%. Topix also advanced 0.49% to a level of 1,532.39 points. The best performers during the session were Chiyoda Corp (+8.45%), Advantest Corp (+5.08%) and Credit Saison Co (+4.61%), while on the flipside were Chubu Electric Power and Concordia Financial Group, which dropped by 1.93% each.
In Australia, the index S&P ASX 200 added 0.95% to its value to a level of 6,443.90 points with most of the sectors being on the green territory.
In South Korea, the Kospi index rose by 0.16% and ended the session at 2,072.33 points. Tech shares were down. Market behemoth Samsung Electronics edged down by 0.68%, and major chipmaker SK Hynix declined by 0.46%. Telecoms and steel shares also traded bearish. LG Uplus, the nation’s third-largest carrier, sank by 3.47% on concerns over its using Huawei equipment for its 5G base stations, and leading steelmaker POSCO declined 1.05%.
Markets in China and Hong Kong were closed on Friday for a holiday.
European markets mid-session recap
European stocks were on course to notch their best weekly performance in two months on Friday as a jump in shares of French pharma giant Sanofi added to the positive mood created by expectations of more moves by central banks to stir growth.
German index DAX 30 edged higher by 99.58 points, or 0.83%, to 12,052.72 points at 10:00 GMT. The automakers, which are sensitive to trade headlines, gained after a report that US President Donald Trump could delay the tariffs he had threatened to put on Mexican goods as soon as this coming Monday. Volkswagen is up by 0.05%, while Daimler added 0.8%. The stocks of the car parts maker Hella fell by 4.3% after a downgrade by brokerage BHF kept gains in check for the sector. The shares of pharmaceutical giant Bayer are down by 0.5%, while chemical company BASF added 1.1%.
French index CAC 40 outperformed its peers with a 1.47% rise to 5,355.83 points as of 10:00 GMT, helped by a 4.5% jump in Sanofi after the company appointed Swiss rival Novartis’ executive Paul Hudson as its new boss. The stock was on track to post its best day in more than seven months, helping the healthcare sector rose by 0.5%. The recovery in oil prices, however, took a toll on airline stocks, with Air France down by 0.9%.
British index FTSE 100 is trading up by 0.7% to 7,311.01 points at mid-session trading. Sharp rises in Shell and BP shares helped Britain’s main stock index gain for the fifth consecutive session on Friday, as signs of a softening in the US-Mexico trade tensions lifted markets globally. Tobacco stocks and consumer giants, considered safer bets at times of macro-economic uncertainties, were still in demand, in a sign of the continuing nerves over global growth that have dominated markets since the start of May.
Wall Street pre-session recap
The US stock index futures were higher Friday as Wall Street looks set for a fifth straight day of gains, amid hopes of progress on trade talks between the US and Mexico.
At around 5:50 a.m. ET, Dow futures were up 73 points and indicated a positive open of around 90 points, while the S&P 500 and Nasdaq also gained.
Investors will also be keeping a close eye to the latest nonfarm payrolls out of the US, which is due out during Europe’s afternoon session. Economists polled by Reuters are forecasting that the US will add 180,000 jobs during the course of May, yet if the figure is dramatically different to this, then this could impact the US Federal Reserve’s current thinking surrounding interest rates.
The investors will focus on the May’s unemployment, nonfarm payroll and average hourly earnings figures are due to be released at 8.30 a.m. ET on Friday. Meanwhile, April’s wholesale trade data is due at 10 a.m. ET and consumer credit figures will be published at 3 p.m.