Global stock markets, on Friday closed mixed as investors parsed the latest earnings reports while awaiting a key U.S. jobs report that threatens to dent optimism over the Fed’s rate hike schedule.
European shares were fairly flat in early trading. Germany’s DAX was nearly unchanged at 12,163.52 and France’s CAC 40 was unchanged at 5,132.39. Britain’s FTSE 100 was up less than 0.1 percent to 7,477.21. Wall Street was poised to open higher.
Dow futures rose 0.1 percent to 21,996.00 and broader S&P 500 futures crept up less than 0.1 percent to 2,472.80, Miami Herald reports.
The week’s big event is the U.S. government’s July jobs report due later Friday, which investors will be analyzing for its implications for interest rates and the dollar. Analysts forecast that American employers added 180,000 jobs last month and the unemployment rate ticked down to 4.3 percent. A strong figure would increase the likelihood of a December rate hike by the Fed.
IN THE MONEY: The latest earnings from big companies added to the strong run of corporate results in the current reporting season. Japanese auto making giant Toyota Motor Corp. posted an 11 percent rise in quarterly profits on improved sales around the globe, it said after the close of trading. In Europe, the Royal Bank of Scotland swung to a 680 million pound ($894 million) quarterly profit after losing more than 1 billion pounds a year ago.
“Friday’s potential market-shaker will be the U.S. jobs report for July, which should offer crucial insights into the health of the US labor market,” said Lukman Otunuga, an analyst at FXTM. “Optimism over the Federal Reserve raising interest rates again this year is waning and a soft U.S. jobs report that fails to plug the holes is likely to expose the dollar to further losses.”
Japan’s Nikkei 225 fell 0.4 percent to close at 19,952.33 while South Korea’s Kospi added 0.4 percent to 2,395.45. Hong Kong’s Hang Seng index edged up 0.1 percent to 27,562.68 but the Shanghai Composite Index shed 0.3 percent to 3,262.08.
Australia’s S&P/ASX 200 slipped 0.3 percent to 5,720.60. Benchmarks in Singapore and Indonesia fell but markets in Taiwan and other Southeast Asian countries advanced.
