By Geoffrey Smith
GossipMantri.com – Global markets are stabilizing after Thursday’s sell-off, but foam continues to emerge from overheated tech names. The United States is expected to have added 1.4 million jobs in August, but many of them are one-time hires for the 2020 census. The US government will not close in October and oil prices will rebound after a brief panic about the global oversupply. Here’s what you need to know about the financial markets on Friday, September 4th.
1. World markets stabilize after the rout
Global markets stabilized after the worst sell-off in months on Wall Street on Thursday, as participants felt the incident was more specific to overheated tech stocks than global developments.
While Asia-Pacific markets all finished lower, the losses of around 1% were nowhere near as severe as those seen in the United States on Thursday. The European stock markets, which had already participated in Thursday’s decline, rebounded strongly, banking stocks in particular raised by the announcement of negotiations to create the largest lender in Spain.
The dollar and other traditional havens, meanwhile, failed to gain much ground, falling in a range well below 93 and up just 0.4% to $ 1,945 per year. troy ounce.
2. The work report highlights the recovery
The United States will release its official labor market report for the month through mid-August, after a barrage of mixed signals from other high-frequency labor market data this week.
Expectations for key growth range from less than 750,000 to over 2 million, indicating the high degree of uncertainty among analysts. The average forecast, according to analysts polled by GossipMantri.com, is around 1.40 million, which would represent a slowdown from July’s 1.76 million, but still solid progress, given that the base period coincided with an increase in Covid-19 cases in the South and West which put the brakes on economic reopening.
However, the number will likely be inflated by government hiring for the 2020 census. Private hires, as measured by ADP, were well below expectations on Wednesday. Data on job applications released Thursday, meanwhile, showed more than 29 million Americans were still claiming benefits as of mid-August.
3. Stocks should open mostly to the upside, but tech foam stocks are still under pressure
US equity markets are expected to open slightly higher, stabilizing after Thursday’s steep sell-off.
At 6.30am ET (10.30am GMT), the contract was up 130 points or 0.5% while the contract was up 0.3%.
however, were down 0.4%, reflecting the extent to which yesterday’s rout was essentially a correction of a rally in a handful of tech stocks rather than an overall change in sentiment on the economic outlook.
Apple (NASDAQ 🙂 stock, whose 8% drop yesterday broke records for the biggest one-day loss in market capitalization on record, was down 0.1% pre-market, while the Tesla (NASDAQ 🙂 stock fell 1.2%, extending its 9% on Thursday. Zoom Video (NASDAQ 🙂 stock was down 1.4%, while Amazon (NASDAQ 🙂 was down 0.2%.
Elsewhere, a survey by consultancy firm Smart Insider, cited by the Financial Times, showed that executives of large-cap U.S. companies sold $ 6.7 billion of their own shares last month, while the number of sellers exceeded 1,000, reaching its highest level since August 2018.
4. No government shutdown in October
US Treasury Secretary Steven Mnuchin and House of Commons Speaker Nancy Pelosi agreed not to shut down the government in October, at the start of the new fiscal year, according to the Associated Press.
The news again indicates at least a minimum of cooperation between the two sides as they continue to argue over the extent and form of a new round of stimulus measures (the need for which will be outlined in the report on the labor market today).
Senate Republicans are due to hold a vote on their $ 500 billion package proposal next week, according to Bloomberg. That’s still a long way from Pelosi’s latest $ 2.2 billion package.
5. Oil bounces back from fear of oversupply; number of rigging eyes
Crude oil prices rebounded intelligently as a brief panic attack over impending oversupply subsided.
At 6:35 a.m. ET, futures were up 1.0% to $ 41.75 a barrel, rebounding from what was just a tentative test of the $ 40 level that was the low of. its range over the past three months. futures, the international benchmark, rose 0.7% to $ 44.38 a barrel, while gasoline futures were back above $ 1.20 a gallon.
Baker Hughes’ weekly data will round the week to 1 p.m. ET.