Slight gains in US market ahead of jobs data, earnings

New York Stock Exchange, Wednesday, August 3, 2022, in New York.  (AP photo/Julia Nikhinson)

New York Stock Exchange, Wednesday, August 3, 2022, in New York. (AP photo/Julia Nikhinson)

AP

Wall Street pointed to small gains on Thursday before a double dose of US jobs data rang the bell, while concerns eased over US House Speaker Nancy Pelosi’s visit to Taiwan, in response to military maneuvers carried out by China. Despite.

Futures for the Dow Jones Industrials were up less than 0.1%, while futures for the S&P 500 were up 0.1%.

Coming data on the US jobs market could help investors determine how the Federal Reserve will proceed with its interest rate policy, which has been aggressive in trying and attempting inflation. Last week’s US jobless claims numbers will be released on Thursday.

This week also focused on earnings as investors analyze the latest results and statements from companies to better understand how inflation is affecting businesses and consumers.

Analysts say geopolitical risks remain since Pelosi’s visit to Taiwan to protest Beijing. Taiwan canceled airline flights on Thursday as China fired missiles near the self-governing island in retaliation for Pelosi’s visit, raising the risk of disruption to the flow of Taiwanese-made processor chips needed for the global telecommunications and auto industries.

China ordered ships and planes to avoid military exercises besieging Taiwan, which the mainland’s ruling Communist Party claims as part of its territory. It previously banned imports of hundreds of foods from Taiwan, including fish, fruit and cookies.

Andersen Alves of ActiveTrades said, “Despite an easing of immediate concerns, investors will be looking for any potential escalation in US-China tensions, with any economic sanctions from China likely to negatively impact risk sentiment and the situation in Asian markets.” is likely to.”

But overall, Pelosi’s journey so far has had little impact on the markets. She goes to Seoul on Thursday and then goes to Japan.

Shares in Europe eased somewhat from big early gains by noon after the Bank of England launched the biggest rate hike in more than a quarter century, saying the United Kingdom’s economy was in recession in the last three months of the year. Estimated to enter.

The bank said on Thursday that inflation would exceed 13% in the fourth quarter and remain “very high” for 2023. The forecast shows a sharp increase from the 9.4% rate recorded in June.

Bank forecasters say inflation will hit its highest point in more than 42 years amid a doubling of wholesale gas prices triggered by Russia’s invasion of Ukraine. The bank said energy prices would push the economy into a five-quarter recession, with GDP shrinking each quarter in 2023.

France’s CAC 40 rose 1% in afternoon trade, while Germany’s DAX rose 1.1%. Britain’s FTSE 100 rose 0.5%.

In Asia, Japan’s benchmark Nikkei 225 closed 0.7% higher at 27,932.20. Australia’s S&P/ASX 200 lost just 1 point to 6,974.90, losing earlier gains. South Korea’s Kospi rose 0.5% to 2,473.11. Hong Kong’s Hang Seng rose 2.1% to 20,174.04, while the Shanghai Composite climbed 0.8% to 3,189.04.

India’s Sensex fell 0.6% and Taiwan’s Taiex also fell 0.5%.

Oil prices rose marginally in September after OPEC’s decision to boost production at a much slower pace than in previous months. Benchmark US crude rose 41 cents to $91.01 a barrel. On Wednesday, US crude fell 4% to $90.66 a barrel. International benchmark Brent crude rose 6 cents to $96.84 a barrel.

In currency trading, the US dollar rose from 133.85 yen to 134.24 Japanese yen. The euro is priced at $1.0166, a slight change from $1.0170.

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