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Markets await US jobs report as oil fears mount

Investor caution prevailed on Friday as a renewed threat to shipping through the Strait of Hormuz pushed oil prices higher, while traders awaited US labour-market data that could influence Federal Reserve policy expectations. Wall Street ended Thursday lower after returning rate concerns prompted profit-taking following record highs. Asian trading was uneven on Friday, with chip-related losses weighing on Japanese and South Korean shares but Chinese equities advancing after stronger-than-expected export data.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

US labor market report
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Asian equity markets were mixed on Friday as renewed selling of semiconductor shares weighed on South Korean and Japanese stocks ahead of the US July employment report. South Korea’s Kospi fell about 0.8%, putting it more than 6% lower for the week, as SK Hynix lost over 4%, while Japan’s Nikkei 225 declined around 0.4%. China outperformed, with mainland China’s CSI 300 rising 1.1%, supported by gains in technology companies, while Hong Kong’s Hang Seng Index edged up 0.1%. Chinese stocks were supported by trade data showing China’s exports increased 23.9% year-on-year in July, exceeding expectations but slowing from June’s 27% expansion, according to customs data released on Friday.

Oil rises on Hormuz restrictions

Oil prices rose on Friday as Iran’s draft plan to regulate shipping through the Strait of Hormuz heightened concerns about supply disruptions. Brent crude oil futures gained 1.5% to USD 83.72 per barrel, while West Texas Intermediate (WTI) futures rose 1.2% to USD 78.22. The proposal would bar US and Israeli vessels from the strait and restrict other countries deemed to have harmed Iran until compensation is paid, while a reported transit agreement with Oman has yet to be confirmed. Supply concerns were compounded by Ukrainian strikes on two Russian refineries, although US President Donald Trump said he expected the war in Iran to end “pretty soon”.

US shares retreat as rate concerns return

US equity markets declined on Thursday after the Dow Jones Industrial Average and S&P 500 had reached new record highs the previous day, as renewed concerns about interest rates encouraged investors to take profits. The Dow fell 0.9% to 53,885.10 points, while the S&P 500 lost 0.2% to 7709.96 and the Nasdaq 100 declined 0.4% to 29,373.33.

Euro-area retail sales decline

Retail trade volumes in the eurozone fell 0.3% in June from May, reversing a revised 0.4% increase in the previous month, Eurostat reported on Thursday. Food, drink and tobacco sales declined by 0.5%, while non-food sales fell 0.4%, partly offset by a 1.5% rise in automotive-fuel purchases. Retail volumes were 0.7% higher than a year earlier, slowing from 1.9% growth in May, as non-food sales rose but fuel sales dropped 6.6%. The EuroStoxx 50 rose 0.5% to a record 6512.25 points on Thursday, supported by hopes that Iran and Oman could agree on a new shipping route through the Strait of Hormuz.

Swiss unemployment rate rises

Switzerland’s unemployment rate increased to 3% in July, up 0.1 percentage points from June, as the number of registered unemployed rose by 1.1% to 139,276 individuals, SECO reported on Thursday. Unemployment was 7.8% higher than a year earlier, while the seasonally adjusted jobless rate remained at 3.1%. Youth unemployment climbed 4.7% from June, and the number of registered jobseekers increased by 0.6%. The Swiss Market Index fell 0.2% to 14,518.75 points on Thursday. 

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Allianz, Munich Re, and Take-Two.

Economic data in focus: French unemployment rate (07:30), German trade balance (08:00), German manufacturing production (08:00), French trade balance (08:45), SECO Swiss consumer sentiment (09:00), US nonfarm payrolls (14:30), US unemployment rate (14:30), Canadian unemployment rate (14:30) and Canadian Purchasing Managers’ Index (16:00).

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Editor: Alessandro Fezzi
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