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4 August 2017
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World stock markets were mixed Friday as investors parsed the latest
earnings reports while awaiting a key U.S. jobs report that threatens to dent
optimism over the Fed's rate hike schedule.
KEEPING SCORE: European shares were fairly flat in early trading.
Germany's DAX was nearly unchanged at 12,163.52 and France's CAC 40 was
unchanged at 5,132.39. Britain's FTSE 100 was up less than 0.1 percent to
7,477.21. Wall Street was poised to open higher. Dow futures rose 0.1 percent
to 21,996.00 and broader S&P 500 futures crept up less than 0.1 percent to
2,472.80.
JOBS REPORT: The week's big event is the U.S. government's July jobs
report due later Friday, which investors will be analyzing for its implications
for interest rates and the dollar. Analysts forecast that American employers
added 180,000 jobs last month and the unemployment rate ticked down to 4.3
percent. A strong figure would increase the likelihood of a December rate hike
by the Fed.
IN THE MONEY: The latest earnings from big companies added to the strong
run of corporate results in the current reporting season. Japanese auto making
giant Toyota Motor Corp. posted an 11 percent rise in quarterly profits on
improved sales around the globe, it said after the close of trading. In Europe,
the Royal Bank of Scotland swung to a 680 million pound ($894 million)
quarterly profit after losing more than 1 billion pounds a year ago. The Total Investment & Insurance
Solutions
ANALYST'S TAKE: "Friday's potential market-shaker will be the U.S.
jobs report for July, which should offer crucial insights into the health of
the US labor market," said Lukman Otunuga, an analyst at FXTM.
"Optimism over the Federal Reserve raising interest rates again this year
is waning and a soft U.S. jobs report that fails to plug the holes is likely to
expose the dollar to further losses."
U.S. PROBE: Special Counsel Robert Mueller's decision to use a grand
jury in an investigation into potential collusion between the Trump campaign
and Russia was the latest headline-grabbing news. The use of a grand jury
suggests that Mueller and his team will likely hear from witnesses and demand
documents in coming weeks. While the move doesn't suggest any criminal charges
are near or will necessarily be sought, the investigation is widely seen as a distraction
and is not good news for markets.
ASIA'S DAY: Japan's Nikkei 225 fell 0.4 percent to close at 19,952.33
while South Korea's Kospi added 0.4 percent to 2,395.45. Hong Kong's Hang Seng
index edged up 0.1 percent to 27,562.68 but the Shanghai Composite Index shed
0.3 percent to 3,262.08. Australia's S&P/ASX 200 slipped 0.3 percent to
5,720.60. Benchmarks in Singapore and Indonesia fell but markets in Taiwan and
other Southeast Asian countries advanced. The Total Investment & Insurance Solutions
CURRENCIES: The dollar edged up to 110.09 yen from 110.04 yen. The euro
strengthened to $1.1886 from $1.1870.
The Total Investment & Insurance Solutions
OIL: Benchmark U.S. crude lost 36 cents to $48.67 per barrel in
electronic trading on New York Mercantile Exchange. The contract dipped 56
cents, or 1.1 percent, to close at $49.03 a barrel on Thursday. Brent crude,
the international standard, dropped 28 cents to $51.73 per barrel in London. It
fell 35 cents to close at $52.01 a barrel on Thursday.The Total Investment & Insurance Solutions
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