market wrap
be careful:
EU GDP. German industrial production index. Trading updates from Informa
Opening call:
European stock futures rose early Friday ahead of U.S. jobs data and European Union gross domestic product (GDP) data. Asian stock benchmarks rose. The dollar has fallen. Government bond yields generally fell. Meanwhile, oil futures rose and gold fell.
stock:
European stock futures rose slightly early Friday as investors focused on U.S. non-farm payrolls.
The European Central Bank kept interest rates on hold on Thursday, leaving the door open to a rate cut later in 2024. Across the Atlantic, U.S. stocks rose after Federal Reserve Chairman Jerome Powell told lawmakers that the central bank could soon change its policy stance. It won’t be long before interest rates can be cut.
Friday’s monthly U.S. jobs report will shed more light on the state of the economy. Traders are hopeful that the job market remains healthy, but not enough to dissuade the Fed from cutting interest rates.
However, analysts believe that many investors appear to expect the stock market’s recent gains to continue.
“There’s no fear in the market,” said Matthew Timm, head of equity derivatives trading at Cantor Fitzgerald. “People don’t seem worried about any downsides.”
Foreign exchange:
The US dollar subsequently fell in the face of the US employment report.
Westpac Strategy Group said the dollar weakness could continue into next week unless the US jobs report “pulls the bulk of the US dollar support out of the hat”.
Fed Chairman Jerome Powell on Thursday maintained the same position he took in Congressional testimony a day earlier, but added that the Fed is “not far” from gaining the confidence it needs to ease policy, but more data is needed, which could lead to a This led to a weakening of the US dollar.
Bonds:
US Treasury yields rise as investors await February jobs data.
The February report predicted 198,000 new jobs would be created, but average hourly wage growth fell to 0.2% last month from 0.6% in January.
Meanwhile, a BMO Capital Markets survey of U.S. Treasury traders found that 35% of respondents said they would sell if market prices rose after payroll, compared with 28% last month and an average of 27%. did.
energy:
Oil futures rose in Asia amid mixed signals of ample supply and slowing demand.
The global oil market is “relatively well-supplied this year,” Toril Bosoni, head of the IEA’s oil markets and industry division, told Reuters on the sidelines of an industry conference in Oslo.
Meanwhile, trade statistics from China, the world’s second-largest oil consumer, show weak demand, ING said.
metal:
Gold prices fell slightly, but may continue to be supported by expectations of a Fed rate cut, which makes the interest-free precious metal more attractive.
Fed Chairman Jerome Powell concluded two days of testimony to Congress, saying the Fed would consider “cautiously lifting” its restrictive monetary policy stance if the U.S. economy performs as expected, and investors should continue to hold onto precious metals. IG added that they are buying.
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Iron ore prices fell on the back of high inventories. Analysts at South China Futures said inventories were building up faster than in the same period last year due to a slow recovery in demand at iron ore terminals.
China’s steel mills have seen a slight recovery in profitability, but they are cautious about the pace of restarting production.
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Copper was flat, but increased demand could support prices. Analysts at ANZ Research pointed to recent trade statistics and said China’s imports of primary goods continued to defy economic growth concerns, with shipments of many primary goods increasing.
ANZ added that increased infrastructure spending on renewable energy should continue to support copper demand.
today’s top headlines
Powell: ‘It won’t be long’ until the Fed has the confidence it needs to cut rates
Federal Reserve Chairman Jerome Powell told lawmakers that the time when the central bank could cut interest rates is “not far off,” with interest rates far above what would be expected during a period of moderate inflation and modest growth. He said that
Chairman Powell reiterated his view Thursday that the central bank wants more confidence that inflation is returning to its 2% target, but a second day of testimony on Capitol Hill showed how quickly the Fed could reach its goal. We took it a step further by limiting what we could do.
Gold continues to set records, but “not everything goes well.” What is transfer price?
Gold prices continued to rise on Thursday, hitting record highs for the fifth straight day. It’s not just the U.S. economic backdrop and Federal Reserve policy expectations that are pushing the yellow metal higher.
On Thursday, front-month gold contracts traded in New York rose about 0.1% to trade at a record high of $2,153 per troy ounce. The most commonly cited reason for gold’s recent rally is confidence among traders that the Federal Reserve will cut interest rates in the coming months. This trend is weighing on U.S. Treasury yields and the dollar, and would typically also push gold higher, as lower short-term interest rates make non-yielding precious metals look more attractive.
Biden aims to boost emergency aid to Gaza with offshore pier
WASHINGTON – President Biden said during Thursday’s State of the Union address that the U.S. military will set up a temporary pier off the coast of the Gaza Strip for cargo ships to unload food, water and other emergency supplies, and that the U.S. military will continue to support the U.S. government’s efforts to address the Gaza Strip issue. He said that the government will strengthen its direct role. Humanitarian crisis in the enclave.
Biden announced plans for emergency projects aimed at alleviating food shortages and lack of shelter and medical services for Gaza’s 2.2 million residents, according to U.S. officials briefing reporters ahead of Biden’s speech Thursday night. The military was instructed to implement it. The president is under pressure to do more to alleviate civilian suffering in the Gaza Strip, where Israeli forces are battling the militant group Hamas.
Hamas leaves Gaza negotiations without ceasefire agreement
Cairo Hamas has announced a ceasefire in the Gaza Strip after its leaders broke days of silence and took a tough negotiating stance amid signs of escalating tensions between Israel and the United States. announced that it would temporarily suspend participation in discussions aimed at securing security.
Yahya Sinwar, who until recently took little part in the talks, has called for Israel to discuss a permanent cessation of fighting and joined other Hamas leaders, according to people familiar with the talks. It is said that it is in conflict with
Boeing ties employee incentives to more safety
Boeing, which has come under fire for production troubles, is overhauling the way it pays employee bonuses in a bid to prioritize quality and safety over meeting financial targets.
The move is one of many to address quality issues related to the Alaska Airlines flight door stopper explosion, according to a memo sent to employees and seen by Wall Street. It applies to employees, managers, and executives with 100,000 or more employees. journal.
TikTok backlash as Congress heads to vote on forced sale
TikTok called on its users to call on Congress and lawmakers to repeal a bill banning the popular video-sharing app in the U.S., and users listened.
However, the plan backfired. The House Energy and Commerce Committee approved the bill on a 50-0 vote Thursday afternoon, instead of killing it after it had been introduced just two days earlier. House Majority Leader Steve Scalise said he intends to bring it to a floor vote.
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Main events expected on Friday
05:30/NED: January manufacturing output
06:00/FIN: January industrial production
07:00/GER: January PPI
07:00/GER: January industrial production index
07:00/ROM: 4th quarter GDP
07:00/SWE: January New orders and deliveries in the industry
07:00/SWE: January industrial production index
07:30/Hun: February CPI
07:45/FRA: January Foreign Trade
07:45/FRA: Balance of payments for January
08:00/SPN: January industrial production
08:00/CZE: February unemployment data
08:00/CZE: January Foreign Trade
08:00/AUT: December foreign trade
08:00/SVK: January Industrial Production
08:00/AUT: January production index
08:00/SVK: January Foreign Trade
09:00/BUL: 4th Quarter GDP – Preliminary Data
09:00/BUL: January industrial production
09:00/ITA: January PPI
10:00/EU: Q4 GDP and major aggregate estimates
10:00/EU: Fourth quarter employment
10:00/CRO: January Retail
10:00/LUX: January industrial production
10:00/GRE: January foreign trade (provisional data)
10:00/GRE: January Industrial Production Index
10:00/CRO: January foreign trade
10:00/GRE: February CPI
10:00/LUX: 4th quarter GDP
11:00/IRL: February Irish Live Register latest monthly figures
11:00/IRL: January industrial production and sales.
All in GMT. Brought to you by Onclusive and Dow Jones.
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(Ended) Dow Jones News
March 8, 2024 00:15 ET (05:15 GMT)
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