Futures for US stock indices fluctuate between growth and decline in trading on Thursday after the publication of data from the Ministry of Labor, which showed the maximum increase since June this year in the number of applications for unemployment benefits in the US.
The number of Americans who applied for unemployment benefits for the first time increased by 29 thousand last week and amounted to 219 thousand people.
According to revised data, a week earlier the number of applications was 190 thousand, and not 193 thousand, as previously reported. Analysts polled by Bloomberg expected the figure to rise to 204,000, on average.
Traders take a cautious stance ahead of the publication of September data on the number of jobs and unemployment in the US. The Department of Labor will release them on Friday at 3:30 pm ET.
The consensus forecast of experts polled by Market Watch suggests that the number of jobs in the US last month increased by 275 thousand (315 thousand in August), while maintaining unemployment at 3.7%.
The situation in the US labor market is a key factor influencing the policy of the Federal Reserve System (Fed), and the upcoming publication of unemployment data makes traders take a wait-and-see attitude, experts say.
Another report from the Department of Labor, published earlier this week, showed a sharp decline in the number of open vacancies in the States in August. The indicator fell by 10% – the fastest pace since the start of the pandemic in 2020, to 10.1 million vacancies.
These data were perceived by investors as a signal of “cooling” of the US labor market, which may hold back further tightening of the Fed’s policy.
However, industry organization ADP said on Wednesday that the number of jobs in the US private sector in September rose by 208 thousand compared to August – more than expected. Analysts polled by Dow Jones had forecast a 200,000 increase after rising 185,000 in August.
Shares of Peloton Interactive Inc. adding 0.2% in price during preliminary trading on Thursday. The US fitness equipment manufacturer plans a fourth round of layoffs that will affect 500 jobs.
Conagra Brands rose 0.4%. The prepared food manufacturer ended the first quarter of fiscal 2023 with a loss, but the company’s adjusted figure and revenue exceeded experts’ expectations.
Share price of International Business Machines fell 0.4%. The company has announced plans to invest $20 billion in business development in the Hudson River Valley over the next decade.
The value of the December E-mini futures on the S&P 500 fell by 0.01% to 3793.75 points by 15:55 Moscow time on Thursday. The quotation of the December E-mini futures on the Dow Jones index decreased by this time by 0.06%, to 30293 points. Futures on the Nasdaq 100 for December rose 0.19% to 11646.25 points.
The stock indexes of the largest countries in the Asia-Pacific region (APR) mostly rose in trading on Thursday, with the exception of the Hong Kong indicator.
Optimistic statistics on the increase in the number of jobs in the United States, published yesterday, dampened hopes that the US Federal Reserve may slow down the pace of tightening interest rates, writes MarketWatch. This put some pressure on stock markets.
The number of jobs in the US private sector in September increased by 208 thousand compared to August, according to the ADP Research Institute. Analysts polled by Dow Jones estimated an increase of 200,000. In August, the number of jobs increased by 185,000, and not by 132,000, as previously reported.
Traders are now waiting for the US Department of Labor September labor market report, which will be released on Friday at 3:30 pm. Experts estimate the unemployment rate in the country last month at 3.7%, the same as in August, and the increase in the number of new jobs in the economy as a whole at 250,000, writes Trading Economics.
Market participants also evaluated the OPEC + decision.
Ministers of the OPEC+ countries at a meeting on Wednesday decided to reduce the alliance’s total oil production quota in November by 2 million bpd.
The Japanese Nikkei 225 rose 0.7% by the close of trading.
The Bank of Japan confirmed its view that most regions of the country are showing moderate economic growth. The regulator left unchanged the assessment of eight out of nine regions and improved the assessment for one region.
The growth leaders among the components of the index are the shares of the IT company Rakuten Group Inc. (+4.6%), Credit Saison Co. Ltd. (+3.3%), a credit card company, and pharmaceutical company Eisai Co. Ltd. (+2.9%).
Hong Kong’s Hang Seng fell 0.4%.
The drop leaders in the index are the shares of the pharmaceutical company Hansoh Pharmaceutical Group Co. Ltd. (-7.6%), automaker Geely Automobile Holdings Ltd. (-3.8%) and developer Country Garden Holdings Co. Ltd. (-3.6%).
Shares of Chinese lithium battery manufacturer CALB Co. completed the debut auction in Hong Kong, practically unchanged in price. The papers started trading at the level of the placement price, and then went into the red, where they were for the main part of the session, but by the close of trading they again returned to the level of 38 Hong Kong dollars ($4.84) per share.
Exchanges in mainland China are closed due to the National Day holidays.
The South Korean Kospi index rose by 1%.
The market value of one of the world’s largest chip manufacturers Samsung Electronics Co. increased by 0.5%, automaker Hyundai Motor – by 0.6%.
The Australian S&P/ASX 200 added 0.03%.
Shares of the world’s largest mining companies BHP and Rio Tinto increased by 0.6% and 0.2%, respectively.
The stock indexes of the largest countries in the Asia-Pacific region (APR) are mainly strengthening at the auction on Thursday, with the exception of the Hong Kong indicator.
Optimistic statistics on the increase in the number of jobs in the United States, published yesterday, dampened hopes that the US Federal Reserve may slow down the pace of tightening interest rates, writes MarketWatch. This put some pressure on stock markets.
The number of jobs in the US private sector in September increased by 208 thousand compared to August, according to the ADP Research Institute. Analysts polled by Dow Jones estimated an increase of 200,000. In August, the number of jobs increased by 185,000, and not by 132,000, as previously reported.
Traders are now waiting for the US Labor Department’s September unemployment report, which will be released on Friday at 3:30 p.m. Experts estimate the unemployment rate in the country last month at 3.7%, the same as in August, and the increase in the number of new jobs in the economy as a whole at 250,000, writes Trading Economics.
Market participants also evaluated the OPEC + decision.
Ministers of the OPEC+ countries at a meeting on Wednesday decided to reduce oil production quotas in November by 2 million bpd.
The value of the Japanese index Nikkei 225 to 8:24 qoq increased by 0.9%.
The growth leaders among the components of the index are the shares of the IT company Rakuten Group Inc. (+4.7%), which issues credit cards Credit Saison Co. Ltd. (+3.9%) and retailer Isetan Mitsukoshi Holdings Ltd. (+3%).
The Hong Kong indicator Hang Seng fell by 0.17% by 8:27 qoq.
The drop leaders in the index are the shares of the pharmaceutical company Hansoh Pharmaceutical Group Co. Ltd. (-7.3%), automaker Geely Automobile Holdings Ltd. (-4.9%) and solar panel manufacturer Xinyi Solar Holdings Ltd. (-3.5%).
Shares of Chinese lithium battery manufacturer CALB Co. depreciated in debut trading in Hong Kong, dropping 1.6% below the placement price of 38 Hong Kong dollars ($4.84) per paper.
Exchanges in mainland China are closed due to the National Day holidays.
The South Korean index Kospi by 8:22 quarter is growing by 1.5%.
The market value of one of the world’s largest chip manufacturers Samsung Electronics Co. increased by 1.8%, automaker Hyundai Motor – by 1.1%.
The Australian S&P/ASX 200 added 0.03%.
Shares of the world’s largest mining companies BHP and Rio Tinto increased by 0.6% and 0.2%, respectively.
Stock indices of the largest countries in the Asia-Pacific region (APR) show a significant rise on Wednesday morning amid speculation that the world’s central banks may abandon the overly aggressive tightening of monetary policy.
A positive impetus to Asian markets was given by the increase in US indices by 2.8-3.3% on Tuesday. Wall Street had the best start to the quarter since 1938.
Investors evaluate the incoming statistical data, which often turn out to be worse than forecasts, and regard them as signals of a slowdown in the global economy. As a result, the world’s central banks may moderate the pace of interest rate hikes, Trading Economics notes.
Yesterday, the Reserve Bank of Australia (RBA) surprised the markets by raising its key rate by 25 basis points (bp) instead of the expected increase by 50 bp. The Australian Central Bank raised the rate by 50 bp. in June, July, August and September, in an effort to slow inflation, which the Central Bank expects to peak by the end of 2022 at around 8%.
On Wednesday it became known that retail sales in Australia rose by 0.6% in August compared to July after rising by 1.3% a month earlier. The index has been growing on a monthly basis for eight months in a row.
Meanwhile, New Zealand’s central bank on Wednesday again increased the rate by 50 bp, to the highest since April 2015 3.5% per annum. As the minutes of the meeting showed, the Central Bank management also discussed the possibility of raising the rate by 75 bp.
In South Korea, consumer prices (CPI index) in September rose by 5.6% in annual terms after rising by 5.7% in August, although analysts did not expect a change.
“We expect inflation to accelerate again in October. Gasoline prices may continue to decline, but gas and electricity tariffs were raised in early October, and the cost of fresh food is likely to increase ahead of winter,” said ING analyst Robert Carnell.
The value of the Japanese Nikkei 225 index rose by 0.6%.
The growth leaders among the components of the index are the shares of Nippon Yusen (+2.6%), Fast Retailing (+1.5%) and Keyence (+1.1%).
On Tuesday, Japanese Prime Minister Fumio Kishida urged Japanese companies to continue raising employee salaries at a rate in line with the country’s inflation rate.
The Hong Kong Hang Seng indicator soared 6.1%. On the eve of the Hong Kong stock exchange did not work, and the day before the index fell to a minimum in 11 years.
Pork producer WH Group jumped 7.8% in Hong Kong trading on news of the sale of its US and Canadian spice business to Saratoga Food.
Market value of Shenzhou Intl. Group climbs 12.4%, BYD Co. – by 9.3%, JD.Com – by 9.2%, Ping An Insurance – by 8.8%.
Exchanges in mainland China are closed due to the National Day holidays.
The South Korean Kospi index is growing by 0.4%.
The market value of one of the world’s largest chip manufacturers Samsung Electronics Co. increased by 1.1%, automaker Hyundai Motor – decreased by 2%.
The Australian S&P/ASX 200 added 1.7%.
The growth leader is the IT sector. Block Inc rose 7.3%, Seek Ltd – 5.9%, Xero Ltd. – by 3.5%. Shares of leading Australian banks are rising by more than 2%.
Fortescue Metals gained 2% after the mining company promised to double its planned investment in its green energy division.
The main stock indexes of the Asia-Pacific region (APR) are steadily rising during trading on Tuesday following the US stock market.
American stock indices finished the first trading session of the fourth quarter with a steady growth, the rise of the Dow Jones Industrial Average was the highest since February, amounting to 2.7%.
Mainland China’s stock exchanges are closed for the Founding Day of the People’s Republic of China holidays, Hong Kong’s stock exchanges for the Double Ninth Festival.
The value of the Japanese index Nikkei 225 to 8:27 CSK increased by 2.8%.
Among the components of the index, the growth leaders are Nippon Sheet Glass Co. Ltd. (+8.4%), Itochu Corp. (+7.9%) and Marubeni Corp. (+6.8%).
In addition, the price of securities of investment and technology SoftBank Group (+5.1%), consumer electronics manufacturer Sony (+2.3%), automotive Nissan Motor (+2%) and Toyota Motor (+2.7%) is rising.
The South Korean Kospi index increased by 2.4% by 8:30 am KSK.
Purchasing Managers Index (PMI) in the processing industry of South Korea, calculated by S&P Global, fell to 47.3 points in September from 47.6 points a month earlier. A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening. Thus, activity in the sector has been declining for the third month in a row.
Quotes of securities of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. grew by 4%, while automaker Hyundai Motor – by 1.4%.
The Australian S&P/ASX 200 added 3.75%.
Shares of the world’s largest mining companies BHP and Rio Tinto increased by 3.8% and 3.1%, respectively.
The Reserve Bank of Australia (RBA) unexpectedly slowed down the pace of key interest rate hikes, noting the deterioration of the global economic outlook.
The rate was raised on Tuesday by 25 basis points (bp) to 2.6%. The vast majority of economists expected it to increase by 50 bp, writes The Wall Street Journal.
The RBA raised the bet by 50 bp. in June, July, August and September, in an effort to slow inflation, which the Central Bank expects to peak by the end of 2022 at around 8%.
Quotes of futures for US stock indices are declining due to the general decline in interest in risk in world markets.
Statistical data, published on Thursday, confirmed the contraction of US GDP in the second quarter. The country’s economy in April-June 2022 decreased by 0.6% on an annualized basis, according to the final data of the US Department of Commerce, which coincided with the previous estimate and forecasts of analysts surveyed by Trading Economics.
The number of new jobless claims in the US, meanwhile, reached its lowest level since May. The indicator decreased last week by 16,000 to 193,000 from 209,000 a week earlier, the country’s Ministry of Labor reported. Analysts, on average, expected an increase in the number of applications to 215K compared to the previously announced level of the previous week (213K), according to Trading Economics.
The price of shares of CarMax Inc., engaged in the sale of used cars, collapsed during preliminary trading by 15% due to weak reporting of the company. Last quarter, CarMax’s net income more than halved to $0.79 per share from $1.72 per share a year earlier, worse than the average forecast of experts surveyed by FactSet at $1.39 per share. Quarterly revenue increased 2% to $8.14 billion, also falling short of market expectations ($8.54 billion).
Alibaba Group Holding shares lost 3.1% after JPMorgan Chase analyst Alex Yao lowered the company’s target price to $135 from $145. The expert retained an overweight recommendation for Alibaba shares, but noted that he is cautious about the company’s outlook given the weakening consumer spending in China.
The price of Kraft Heinz Co. stable in pre-trading despite UBS’s upgraded recommendation for US food maker shares to Neutral/Sell.
The share price of Occidental Petroleum rose 0.1%. On the eve it became known that the investment company of the American billionaire Warren Buffett Berkshire Hathaway bought another 6 million shares of Occidental, increasing its share to 20.9%.
Berkshire fell 0.95%.
The share price of the American pharmacy chain Rite Aid Corp. fell by 12%. The company’s net loss in the second financial quarter ended August 27 more than tripled year-on-year to $331.3 million, or $6.07 per share, from $100.3 million, or $1.86 per share. Rite Aid wrote off $252.2 million last quarter due to a business reorganization.
The value of the December E-mini futures contract for the S&P 500 fell by 1.2% by 15:55 CST on Thursday and amounted to 3686.5 points. The quote of the December E-mini futures on the Dow Jones index decreased by this time by 0.99%, to 29456 points. Futures on the Nasdaq 100 for December fell 1.5% to 11381.25 points.
