GLOBAL MARKETS DJIA 31384.55 346.87 1.12% Nasdaq 11621.35 259.49 2.28% S&P 500 3902.62 57.54 1.50% FTSE 100 7189.08 81.31 1.14% Nikkei Stock 26852.46 361.93 1.37% Hang Seng 21732.16 88.58 0.41% Kospi 2362.93 28.66 1.23% SGX Nifty* 16262.00 129 0.80% *July contract USD/JPY 135.75-76 -0.18% Range 136.15 135.65 EUR/USD 1.0168-71 +0.08% Range 1.0193 1.0161 CBOT Wheat July $8.244 per bushel Spot Gold $1,743.22/oz 0.2% Nymex Crude (NY) $102.46 $3.93 U.S. STOCKS
U.S. stock futures were slightly down Thursday evening as investors awaited the release of Friday's June jobs report.
At 6:15 p.m. Eastern time, futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq were down 0.13%, 0.11%, and 0.16%, respectively.
U.S. stocks posted their fourth straight session of gains Thursday, lifted by shares of everything from banks to consumer-focused companies.
A report Thursday showed the number of new applications for U.S. unemployment benefits rose to a six-month high last week, a sign that growth in the labor market is slowing down.
The S&P 500 rose 57.54 points, or 1.5%, to 3902.62, notching its longest winning streak since March. The tech-heavy Nasdaq Composite Index gained 259.49 points, or 2.3%, to 11621.35 and also ended Thursday with its longest winning streak since March.
The Dow Jones Industrial Average climbed 346.87 points, or 1.1%, to 31384.55.
ASIAN STOCKS
Japanese stocks were higher, led by gains in auto and energy stocks, thanks partly to the yen's recent weakening despite uncertainty over business operating costs. Auto parts maker Denso gained 4.5% and oil explorer Inpex was 3.1% higher. Meanwhile, mayonnaise maker Kewpie was down 6.1% after first-half net profit dropped 7.6% on year. Any policy-related developments were in focus ahead of Japan's upper-house election on Sunday. USD/JPY is at 135.99, compared with 135.92 as of Thursday's Tokyo stock market close. The Nikkei Stock Average was 0.4% higher at 26597.51.
South Korea's benchmark Kospi rose 0.9% to 2355.41 in early trade, led by gains in auto, shipbuilding and tech stocks. Gains in U.S. and European stocks overnight helped boost investor sentiment. Foreign and retail investors were net buyers. USD/KRW was 0.2% lower at 1,297.50 amid growing risk appetite. Korea Shipbuilding & Offshore Engineering rose 2.5% after new contract wins. Car-parts supplier Hyundai Mobis added 2.0% as parent Hyundai Motor advanced 1.7%. LG Chem climbed 4.0% as its battery-making subsidiary LG Energy Solution rose 1.7%. Memory-chip maker SK Hynix was up 1.5%. Index heavyweight Samsung Electronics was 1.0% higher.
Hong Kong stocks were higher in morning trade, following strong gains in the U.S. overnight. The benchmark Hang Seng Index was up 1.5% at 21961.75. KGI Securities analysts pointed out that Chinese tech giants may help sustain the market today, as these internet blue chips performed well on Wall Street and could continue the momentum in Asia trading. However, the analysts warned of continued uncertainties for Hong Kong equities in the near term, as investor sentiment appears to be weakening, with shrinking daily turnover in recent sessions in the Asian financial hub. The brokerage puts the HSI's key resistance at 22000.
Chinese shares were higher in early trade, helped by gains in infrastructure-related stocks. The Shanghai Composite Index added 0.5% to 3382.52, the Shenzhen Composite Index rose 0.6% to 2240.37 while the ChiNext Price Index advanced 1.1% to 2881.40. News that the government was planning to allow local authorities to sell CNY1.5 trillion of special bonds in 2H to support infrastructure funding is helping to support market sentiment, UOB analysts said in a note. Investors will also be watching for China's June inflation data which are due to be released over the weekend, they added. China Railway Group gained 0.5%, China Communications Construction rose 0.8% and Shanghai Construction Group added 0.3%.
FOREX
On Thursday, the WSJ Dollar Index fell 0.1% and the dollar strengthened 0.3% against the euro and slightly against the yen. "We forecast a further 2% appreciation of the trade-weighted US dollar over the rest of this year. But we continue to think that the risks are skewed towards even greater dollar strength," Capital Economics' Jonas Goltermann said in a note. CapEcon's view the dollar will strengthen more is based on a belief the U.S. economy will hold up better than others, the Fed will remain aggressive and that risky assets will remain under pressure, boosting safe-haven demand for dollars. Interest-rate differentials, already in the dollar's favor, could widen further still, Goltermann said, and a major risk-off event could drive the dollar even higher.
METALS
Gold prices were higher in early Asian trade, as a steadier USD helps ease some of the downward pressure on the precious metal. Gold will likely continue to find support from current geopolitical risks as well as from inflationary pressures in global markets, Axis Securities analysts said in a note. "Gold will continue to be a preferred asset class until uncertainties over the Russia-Ukraine conflict fades and will continue to attract investments as a proven hedge against other asset classes," they added. Spot gold rose 0.2% to $1,743.22/oz.
OIL SUMMARY
Oil prices were lower in early Asian trade, weighed by bearish data that showed a hefty weekly increase in U.S. domestic crude-oil inventories. The markets's focus will likely be on China, following news that the government plans to allow local authorities to sell CNY 1.5 trillion of special bonds in 2H to support infrastructure funding, SPI Asset Management's managing partner Stephen Innes said in a market commentary. "While negative Covid headlines in China do not help, thoughts of a delayed China reopening suggest a demand surge yet to come and, against the backdrop of a tight physical market, it should support the medium-term outlook for oil," he said. Front-month WTI crude oil futures and Brent each fell 0.2%, to $102.53/bbl and $104.41/bbl, respectively.
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(END) Dow Jones Newswires
07-07-22 2316ET
