Close attention to the economic data releases
The weekly data showed a continued recovery in the labour market leading to a fall in US stocks as investors closely watched any potential policy shifts from the Fed. The Friday data on non-farm payrolls and unemployment rate will offer fresh insights into recovery in the labour market, which Fed officials have said they remain concerned about.
The S&P 500 fell 0.36%, to 4192.85, while the Dow Jones Industrial Average slipped 0.07%, to 34577.04. The Nasdaq Composite lost 1.03% to 13614.51, dragged down by the tech stocks that propelled the market higher during the pandemic.
In the bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.624% from 1.591% on Wednesday and has risen in four of the past six trading days.
European stocks pared losses on Thursday as upbeat eurozone business growth data and strong U.S. jobs data lifted sentiment on a dull day of trading. The session ended on a mixed note. DAX gained 0.19%, while CAC 40 lost 0.21% and FTSE 100 dropped by 0.61%.
Euro zone bond yields edged up but stayed near recent lows as markets sought direction ahead of next week’s ECB policy meeting, while long-dated debt auctions from Spain and France attracted decent demand.
Germany’s 10-year yield, the benchmark for the euro area, was up 0.01% at -0.186% by 1518 GMT. The Spanish, French and Italian 10-year bond yields all rose between 0.013% and 0.017% each, staying within recent ranges.
The data on Construction PMI and Retails Sales will be released later today.
Most emerging Asian equities declined on Friday, with Malaysian shares falling the most as domestic coronavirus cases rise, while currencies weakened after upbeat economic data from the United States boosted the dollar. NIKKEI 225 lost 0.40% while HSI was down 0.28% at 8:20 GMT.
Oil prices continued their positive momentum for the third day on Thursday on expectations of a rebound in demand recovery, although the two key benchmarks both ended the day slightly lower. International benchmark Brent crude ended the day at $71.31 per barrel for a 0.05% decrease. American benchmark West Texas Intermediate (WTI) was at $68.81 per barrel at the end of the day for a 0.03% fall.