By IFCMarkets

US stocks ended flat on Thursday as investors were cautious about the anticipated payrolls report on Friday. The gains in tech sector were offset by falling oil prices and weak factory activity data. The US factory activity fell in August for the first time in 6 months because of lower new orders and production, according to the ISM report. Energy stocks lost 0.3% following oil prices that slumped on supply glut worries. On the other hand, tech companies advanced with Hewlett Packard Enterprise 3.2% up, Apple 0.6% up and Charter Communications 4.5% up. US dollar index, a measure of a greenback’s value against a basket of six major currencies, slid from its 3-week high of 96.255 hit on Wednesday and lost 0.42% to 95.620. S&P 500 index edged 0.09% lower to 2,170.86. Dow Jones industrial average added 0.1% to 18,419.3 while Nasdaq composite rose 0.27% to 5,227.21. Today at 14:30 CEST the US payrolls for August will come out which are key data for Fed rate decision. They are expected to have risen 180 thousand in August, according to Reuter’s poll. Yesterday on Thursday another Fed voting member said the US labour market is sound which gives ground for gradual interest rate hikes. At the moment traders price in a 27% chance of Fed rate hike in September up from 24% a day earlier. The December hike is 54.4% probable.

European stocks were on the rise on Friday anticipating the US payrolls data later on the day. STOXX EUROPE 600 rose 0.2% after flat Thursday session but remained in a tight range. The index was driven up by such defensive stocks as healthcare and utilities. Bank shares were edging lower on expectations of US rate hike with Banco Santander, Barclays and Deutsche Bank losing 0.8-1.2%.

Asian stocks were mainly advancing on Friday. Nikkei closed flat on Friday as weak US factory activity data weighed on investors sentiment and investors awaited US payrolls data. The Nikkei index fell 0.01% to 16,925.68 having previously hit a 3-month high on Thursday. The benchmark closed this week 3.45% higher. Topix index advanced 0.25% to 1,340,76. USDJPY was traded at 103.60 yen, 0.3% up on Friday. Chinese stocks were advancing on Friday as property stocks rebounded but investors remain cautious. The CSI 300 index rose 0.4% to 3,314.11 while Shanghai Composite index added 0.1% to 3,067.35. Hong Kong’s Hang Seng index added 0.5% to 23,266.70 points.

Oil futures prices were looking up Friday. Brent crude oil rose 0.1% to $45.73 while WTI oil rose 0.2% to $43.22 a barrel.

As US dollar was declining, gold bounced up late on Thursday from 2-month low of $1,301.91 an ounce. Today on Friday spot gold is neutral in a range of $1,303-$1,318 an ounce. US gold futures were traded at $1,317.50 today in the morning. Silver and platinum are also flat at $18.84 and $1,041.70 an ounce respectively.

Market Analysis provided by IFCMarkets

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