The data is to show an increase in payrolls of 275,000 in September
Wall Street stocks finished lower overnight as Treasury yields extended the ascent as investors digested a batch of hawkish remarks from Federal Reserve officials. The benchmark 10-year rate exceeded the 3.8% figure while the 2-year yield topped 4.2%. The Dow Jones Industrial Average fell 1.15%, the S&P 500 lost 1.02%, while the Nasdaq Composite dropped 0.68%. Still, all of the major benchmarks are on pace to end the week with their best weekly gains since June.
In Asia, equities were mixed-to-lower on Friday as investors were nervous ahead of a crucial US jobs report due later in the day. After reaching a two-week high in the previous session, Japan’s Nikkei 225 fell 0.7% ahead of the weekend while Hong Kong’s Hang Seng gave up 1.4%. South Korea’s Kospi slipped 0.22%, weighed marginally by a decline in Samsung Electronics shares. The technology giant flagged a worse-than-expected 32% drop in quarterly operating earnings.
European markets opened slightly lower as risk sentiment stayed sour ahead of the weekend after the recent solid but short-lived gains. On the data front, German industrial production came in at -0.8% versus -0.5% expected and -0.3% previously while retail sales arrived at -1.3% versus -1.2% expected.
Meanwhile, the dollar has been advancing north for the third session in a row, with traders awaiting a key monthly jobs report out of the United States. The data is to show an increase in payrolls of 275,000 in September, with unemployment projected to remain steady at 3.7%. The figures will likely affect the Federal Reserve’s monetary policy decision in November, so the dollar’s reaction to the release could be fairly volatile. The USD index regained the 112.00 level, challenging the 112.50 zone that could cap further gains if the data disappoints later in the day.