The dollar stays pressured, trading on the defensive for the fourth session in a row
U.S. stocks rebounded from earlier losses Thursday to finish the day little changed. The Nasdaq and the S&P 500 both shed about 0.1%, while the Dow Jones Industrial Average finished just 0.03% lower. On the data front, new jobless claims came in at 207,000 for the last week of September, a slight increase from the previous week. Later today, nonfarm payrolls for September could show a 170,000 increase, down from a 187,000 jobs gain in August. The report could set the tone for the Federal Reserve’s next move for interest rates.
Asian equities traded mostly higher on Friday, shrugging off Wall Street losses ahead of key US jobs data. Japan’s benchmark Nikkei 225 lost less than 0.1%. Australia’s S&P/ASX 200 rose 0.4%, South Korea’s Kospi edged up 0.2%, Hong Kong’s Hang Seng jumped 1.4%, while troubled property developer China Evergrande’s shares were down more than 6%. Еру index was boosted by financials and technology stocks. Markets in China remained closed Friday for a holiday. Hong Kong-listed shares of Alibaba added more than 2% during the session.
In Europe, stocks opened higher on Friday, with the pan-European Stoxx 600 index trading up 0.5% in early trade after closing higher on Thursday, following three consecutive negative trading sessions. Among the biggest movers in the regional markets, Philips shares gave up 10% after the news out of the US. The Food and Drug Administration said it is not satisfied with the status of the Dutch company’s long-running product recall.
In currency markets, the US dollar stays pressured, trading on the defensive for the fourth session in a row as safe-haven demand has eased. Earlier in the week, the USD index peaked at 107.35 before retreating amid profit-taking after rallying to fresh multi-month highs. Now, the DXY has settled below 106.50, looking ready to challenge the 106.00 support zone if the pressure keeps building after the upcoming US jobs report. On the upside, the nearest resistance now arrives around 106.50, followed by the 106.70 zone.