Global Stocks Broadly Flat Ahead of U.S. Jobs Report
04 Março 2016 - 8:02AM
Dow Jones News
By Riva Gold
Global stocks were steady on Friday, as investors held off from
making big bets ahead of the release of U.S. labor market data that
should provide clues over the direction of U.S. monetary
policy.
The Stoxx Europe 600 was up 0.1% midmorning, following a
modestly higher finish on Wall Street.
Early gains in Europe were led by the basic resources sector,
which rallied as the price of industrial metals such as copper
rose. Shares in commodities giants Glencore PLC and Anglo American
PLC were both up 4.6%.
But falls in banks and insurance companies kept European gains
in check.
Futures pointed to a flat open for the S&P 500. Changes in
futures don't necessarily reflect market moves after the opening
bell.
The jobs report, due later Friday, is the last major data point
watched by officials ahead of their policy meeting on March 15-16.
A strong report could increase expectations of further action from
the Fed, pressuring U.S. Treasurys and boosting the dollar. Weeks
of financial market turmoil, uncertainty on the global economy and
falling commodities prices had eroded expectations for further U.S.
interest rate increases this year.
Federal Reserve
"The pace of rate rises will be slower than we thought, but
they'll still happen unless we see real signs of economic
weakness," said Robert Smithson, fund manager at THS Partners.
Earlier, stocks in Japan and Australia edged slightly higher.
The Shanghai Composite Index ended 0.5% higher, ahead of China's
annual legislative sessions this weekend, where officials will lay
out their plans for reform.
In commodities, Brent crude oil edged down 0.3% $36.97 a barrel,
but remained on track to gain roughly 6% this week.
Both stocks and commodities have bounced back since
mid-February, following steep losses earlier in the year. "I don't
think all the fear is gone, but there's hope we're at least
stabilizing," said George Zivic, portfolio manager at
OppenheimerFunds.
Still, much of the recent recovery has come from short-covering,
particularly in commodities, suggesting the gains might not last,
said Mr. Zivic. "We expect continued volatility," he added, as
investors reassess the global economy, central banks and the
strength of the U.S. dollar.
In currencies, the dollar was broadly steady ahead of the jobs
data, after falling on Thursday on a weak U.S. services sector
report. The dollar was up 0.1% against the yen at Yen113.6960,
while the euro was up 0.1% against the dollar at $1.0960.
Gold was up 1.1% at $1272 an ounce.
Chao Deng contributed to this article.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
March 04, 2016 05:47 ET (10:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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