By IFCMarkets

US stocks were mixed on Thursday. S&P 500 and Dow Jones retreated while Nasdaq advanced on strong performance of Costco and tech stocks. US dollar index, a measure of a greenback’s value against a basket of six major currencies, rose 0.27%. Dow Jones industrial average fell 0.13% to 17,894.98. S&P 500 index dived 0.09% to 2,097.86 with its utilities sector closing down almost 1.8% after previous strong increase on Brexit as investors preferred less risky sectors of economy. The telecom services stocks fell 1.6%. Nasdaq composite added 0.36% to 4,876.81 as Costco stocks advanced 4.9% to a 7-month high of $163.70. US bond prices dipped on profit-taking as 10-year yields set a fresh low of 1.321% this week. Analysts are positive about US bonds prices as investors continue escaping Europe. The trading volume was lower with 6.70bn shares against the daily average of 7.78bn shares.

US data were mostly positive on Thursday. The ADP payrolls rose in June more than expected while the unemployment claims fell. Today at 14:30 CEST much US data are awaited. The US nonfarm payrolls for June are expected to have risen 180 thousand. The outlook for private and manufacturing payrolls is positive as well. The May unemployment is to rise to 4.8% from 4.7%. The outlook for average hourly earnings is positive. At 19:00 CEST the Baker Hughes US rig count data will come out.

European stocks advanced on Thursday following three days of losses on strong performance of major consumer stocks. Danone shares edged 4.4% higher as company is planning an acquisition of US food group for $12.5bn. Another company, Associated British Foods, rose 6% on plans to expand its retail chains across Europe and US regardless of Brexit. STOXX EUROPE 600 index added 1.2% while FTSEurofirst index gained 1.1%. On the other hand, STOXX EUROPE 600 is still 7% down after Brexit. The pound is traded at $1.2945 after its fresh low of $1.2798 hit on Wednesday. The British pound is losing ground for the 3rd straight week. EURUSD edged 0.3% lower on Thursday and is currently traded at $1.10775. Today in the morning the data showed that the German trade surplus contracted in June with May exports showing the steepest decline in 9 months. In Britain the trade deficit contracted in May. NO other significant economic data are expected today in Europe.

Asian stocks retreated on Friday as investors preferred low-risk assets awaiting US nonfarm payrolls and after four policemen were killed in US. Japanese Nikkei index lost 1.1% on Friday and 3.7% this week while yen strengthened. USDJPY is traded at 100.51 per dollar. Bond yields retreated to fresh lows in Japan. MSCI index of Asia-Pacific shares outside Japan lost 0.6% on Friday and 1% this week. The Hong Kong stocks fell 1%.

Oil futures prices slumped 5% on Thursday as markets were disappointed with US government data that oil stocks fell in line with forecasts while their more severe contraction was expected by the bulls. Brent crude futures fell to a 2-month low of $46.15 a barrel while WTI futures fell to $45.31 a barrel. For now, the US production has contracted 12.3% since 2015 peaks which contributes to the tightening of the global supply.

Gold is looking down on Friday but is rising for sixth straight week already.
Market Analysis provided by IFCMarkets

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