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Mixed PMI data ahead of US jobs report

Manufacturing PMIs showed continued expansion in the US and the euro area on Thursday, but slower growth in Canada and Switzerland. Asian stocks were mixed on Friday as Tokyo inflation accelerated, while US shares had closed higher on Thursday as Treasury yields eased. Gold and bitcoin rose in early Friday trading, while oil slipped. Company results offered a mixed picture: Nike shares fell after disappointing sales, while Accenture rallied on strong results. Investors now await Friday’s euro-area inflation figures and US employment report, including nonfarm payrolls and the unemployment rate.

  • Date
  • Author Amira Scherz, Junior Investment Writer
  • Reading time 5 minutes

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Asian stocks traded unevenly on Friday ahead of the US employment report, with Hong Kong’s Hang Seng falling 2.8% to 23,916.00 points as higher bond yields and oil prices weighed on sentiment. Japan’s Nikkei 225 slipped 1% to 68,252.50 points, while South Korea’s KOSPI gained 0.3% and Australia’s S&P/ASX 200 rose 0.7%. Tokyo core inflation accelerated to 2.7% year-on-year in September from 1.8% in August, strengthening the case for further Bank of Japan rate increases. In early Friday trading, gold rose 0.2% to around USD 4180 per ounce and bitcoin gained 2.5% to around USD 86,400. Brent crude oil futures fell 0.2% to USD 102.08 per barrel, while West Texas Intermediate (WTI) futures declined 0.5% to USD 92.41 per barrel.

US and Canadian manufacturing diverge

US jobless claims fell to 197,000 from a revised 198,000 last week, Thursday’s data showed. The ISM manufacturing PMI slipped to 54.5 in September from 54.6 but signalled a ninth month of growth, as stronger new orders accompanied a rise in the prices index to 77.9 from 71.1. Canada’s manufacturing PMI fell to 51.5 from 53, its lowest since March, as new orders contracted amid US trade frictions and high energy costs.

US stocks rise as bond yields ease

US stocks edged higher on Thursday as bond yields retreated: the S&P 500 gained 0.2% to 7666.45 points, the Nasdaq-100 rose 0.3% to 30,501.56 and the Dow Jones Industrial Average reached 50,926.56. Two-year Treasury yields fell about ten basis points to below 4.8%, while Federal Reserve (Fed) Vice Chair Philip Jefferson said more data were needed before deciding whether to raise rates again. Friday’s US employment report will test expectations of further Fed rate increases. However, the US Dollar Index nevertheless climbed 0.6% to 102.03, its highest since April 2025, while the euro fell 0.7% to USD 1.1243 after France proposed a 2027 budget targeting a deficit of 5% of GDP. 

Nike slides while Accenture rallies

Nike shares hit a 52-week low of USD 35.02 on Thursday as the US sportswear group reported a 4% decline in fiscal first-quarter revenue to USD 11.21 billion, with China sales down 26%. Nike expects a further revenue decline in fiscal 2027 and announced job cuts; its shares fell about 3% in after-hours trading. Shares of Irish consultancy group Accenture gained 15.8% on Thursday after fiscal fourth-quarter revenue of USD 18.68 billion and earnings of USD 3.29 per share beat forecasts. It reported record bookings for large contracts and expects revenue and adjusted earnings per share to grow by 3% to 6% in fiscal 2027.

Inflation in Switzerland steady

The Swiss consumer price index remained unchanged from August at 101.5 points in September and prices rose 1% year-on-year, according to figures released on Thursday. Higher fuel costs were offset by cheaper travel and accommodation. Retail sales growth accelerated to 3.2% year-on-year in August from 2.6% in July, while the manufacturing purchasing managers’ index eased to 55.3 in September from 57.1 but remained in expansionary territory.

Euro-area manufacturing improves as unemployment steadies

The euro-area manufacturing purchasing managers’ index rose to 52.9 in September from 52.7 in August, its highest level since May 2022, supported by demand for investment goods. Germany’s and France’s readings eased, while Italy’s and the UK’s improved; input costs rose more quickly across the euro area and the UK. Euro-area unemployment held at 6.4% in August, up from 6.3% a year earlier, while Italy’s rate rose to 6.2% from 6% in July and 5.7% a year earlier.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Italian retail sales (10:00), euro-area Consumer Price Index (11:00), US nonfarm payrolls (14:30), US unemployment rate (14:30), US durable goods orders (16:00).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.