European equities are expected to open firm yet cautious ahead of the decisive Non- farm Payrolls data due from the U.S during market hours. The resilience of the labor market as indicated by the headline addition to non-farm payrolls is perceived as a key parameter tracked by the Fed for deciding the pace and timeline for post-pandemic normalization. The data assumes significance in the context of increasingly hawkish stances on tapering and tightening by Fed officials of late.
Overnight the Nasdaq 100 had closed at 14560.05, up by 0.04 percent whereas the Dow Jones Industrial Average’s final reading for Thursday was 34633.53, higher by 0.38 percent over previous close in the backdrop of strong manufacturing PMI numbers.
On Thursday the European bourses had staged a smart recovery after a broad sell off on the previous day as dovish comments from central bank officials helped shed anxiety over any premature tightening to reign in soaring inflation. Markets also took cognizance of the surge in oil prices as being reflective of the potentially strong economic recovery. The FTSE 100 had surged 1.25 percent, the CAC 40 had rallied 0.71 percent, the pan-European Stoxx 600 had gained 0.62 percent. the DAX 30 had advanced 0.34 percent whereas the SMI 20 had added 0.29 percent.
In morning trade, Asian Stock markets are trading mixed with advances noticed in Japan’s Nikkei 225, Australia’s ASX 200, and New Zealand’s NZX 50 indexes and declines recorded in China’s Shanghai Composite, Hong Kong’s Hang Seng, India’s Sensex and South Korea’s Kospi indexes. In addition to the crucial jobs data from the U.S, Asian stocks appear to be preoccupied with the domestic coronavirus situation too.
Brent crude is staying close to the $75.70 per barrel mark, slightly lower than Thursday’s close of $75.84. The black liquid has been staying firm after it was apparent that OPEC+ failed to reach an agreement on output hike in August.
Gold found safe haven in the delta variant concerns and remained strong at $1777.9, edging up 0.06 percent over previous close, despite the greenback’s recent strength.
The dollar index is currently trading at 92.56 a tad lower than the previous close of 92.59 as hawkish undertones in recent Fed commentary reinforced faith in the strength of the dollar and attracted safe haven flows. Pound Sterling has moved 0.04 percent to trade at $1.3773 and Euro has moved 0.01 percent to trade at $1.1845 in morning trade, hovering close to the near three-month lows.
France’s Budget numbers will be released in early hours of trade. Producer Prices of Euro Area as well as France’s new car registration numbers will also be known later in the day. The decisive non-Farm payroll numbers from the U.S. Bureau of Labor Statistics will also be known before close of trading.
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