The figures could affect the outlook for Federal Reserve policy tightening
Wall Street stocks extended the ascent overnight after the Senate approved legislation to temporarily raise the federal government’s debt limit and thus avoid the risk of default. The government’s borrowing ability was extended into December. Also, the number of people applying for unemployment fell last week, the Labor Department reported. As such, the S&P 500 index gained 0.83%, the Dow Jones added 0.98% and the Nasdaq Composite advanced 1.05%. Now, investors shift focus to the key employment data that could show U.S. employers hired more workers in September.
Asian markets followed US stocks higher Friday. The Shanghai Composite Index climbed 0.67% after the data showed that the Caixin China services PMI rose to 53.4 last month from 46.7 in August. The Nikkei 225 added 1.34% while the Hang Seng in Hong Kong advanced 0.55%. Bucking the trend, the Kospi in Seoul slipped 0.11%.
In Europe, equities opened mixed on Friday, with the pan-European STOXX 600 index slipping 0.2% in early trade. Meanwhile, oil and gas stocks jumped over 1% amid another rally in the oil market. Brent crude bounced from local lows below $80 to regain the $83 figure on Friday despite the overbought conditions. Elsewhere, market players are getting cautious ahead of the US jobs report as the figures could affect the outlook for Federal Reserve policy tightening.
Meanwhile, the dollar continues to enjoy demand, staying elevated around 2021 highs ahead of the weekend. The USD index is navigating the 94.75 area where the September 2020 high arrives. EURUSD is slightly off earlier lows seen around 1.1530 but still stays below the 1.1600 figure, struggling to overcome the 1.1570 intermediate barrier.
