The data is likely to show that the economy created 180,000 jobs last month, up from +150,000 reported in October
US stocks advanced on Thursday in anticipation of a crucial monthly US jobs report that could affect interest rate expectations ahead of Fed’s next week meeting. Fresh data showed that 220,000 jobless claims were filed last week, with the number coming in line with market expectations. The S&P 500 climbed 0.80%, while the Dow added 0.17%, and the Nasdaq Composite advanced 1.37% as tech stocks outperformed. In individual stocks, Alphabet rallied more than 5% as the market cheered the company’s launch of its Gemini artificial intelligence model.
Asian equities were mixed on Friday before key U.S. nonfarm payrolls data due later in the day. Leading losses, the Nikkei 225 fell 1.8% after BOJ Governor Ueda outlined the options the bank had to pivot away from ultra-low interest rates. Meanwhile, the data showed that Japan’s economy shrank by 2.9% year-on-year in the third quarter, worse than estimated earlier. Elsewhere, Hong Kong’s Hang Seng index erased early gains to finish 0.13% lower and the Shanghai Composite index was up 0.11%. The Kospi in Seoul gained 1%, while Australia’s S&P/ASX 200 edged up 0.3%.
In Europe, equities opened higher, with the overall mood more tentative as traders await the US jobs report. Regional equities are hoping to post a positive week with another round of gains. US futures are directionless and little changed, as traders are in wait-and-see mode. The US report is likely to show that the economy created 180,000 jobs last month, up from +150,000 reported in October. The unemployment rate is set to remain unchanged at 3.9%.
In currencies, the US dollar is back in positive territory after yesterday’s slide that was triggered by rising jobless claims in the US. The USD index failed to hold above the 104.00 figure after finding resistance in the 104.20-104.25 region. As a result, the greenback briefly fell below 103.30 before bouncing. Ahead of the weekend, the dollar is back on the offensive, with traders remain cautious ahead of a key jobs report that will set the direction for USD pairs in the near term. Should the figures disappoint, the greenback will resume the decline and could even threaten the 103.00 mark.