OPENING CALL: The Australian share market is expected to open lower. The SPI200 futures contract expected to open down 52 points.
Ebbing recession fears and calming geopolitical tensions have driven the Dow’s climb toward 29000. Investors were closely assessing the U.S. Labor Department’s December jobs report for any signs of a slowing economy.
Treasury yields slipped on haven buying, following a tepid December jobs report and the announcement by the U.S. of new sanctions against Iran.
Overnight Summary
Each Market in Focus
Australia’s S&P/ASX 200 index gained 0.8% to close at a record high of 6929.0. The benchmark index pushed past its five-week-old intraday high of 6893.7 in early trade and touched a fresh all-time high of 6933.2 shortly before the close.
Health stocks led the advance with a 2.1% gain that included sector giant CSL gaining 2.8% to an all-time high of A$299.30. JPMorgan this week said the vaccine maker would benefit from the early onset of the U.S. flu season. Every sector gained other than materials, which dropped 0.36% following a fall in metal prices.
The blue-chip index crossed the threshold in morning trading before paring some of its gains. It closed down 133 points, or 0.5%, at 28824, after earlier rising as high as 29009.
Shares of Boeing, which slipped roughly 1.9%, pulled the index lower. The planemaker released internal communications late Thursday that showed employees displayed a cavalier attitude toward safety.
The S&P 500 and Nasdaq Composite rose in early trading before also edging lower, losing about 0.3% apiece. Despite their declines Friday, all three major indexes notched weekly gains.
The gold futures price rose by US$5.80 or 0.4% to US$1,557.50 an ounce. Spot gold was trading near US$1,562 an ounce in late US trade. Over the week gold also rose by 0.4%. Iron ore fell by US15 cents or 0.2% to US$93.25 a tonne. Over the week iron ore fell by US65 cents or 0.7%.
Oil prices finished their largest weekly drop in nearly six months despite recent tensions between the U.S. and Iran, underscoring bets that geopolitics in the Middle East won’t disrupt the world’s crude supplies and threaten the world economy.
The WSJ Dollar Index fell 0.1% as the December jobs report arrived near expectations, showing hiring slowing at the end of the year.
Olivier Konzeoue at Saxo Markets said the unemployment rate of 3.5% shows the U.S. economy is essentially at full employment, making it hard to create jobs.
European stocks fell as investors digested disappointing U.S. jobs data and worse-than-expected trading updates from retailers.
Retail shares dropped with B&M European Value Retail the biggest faller, down 6.1%, after the budget retailer reported slower-than-expected sales growth over the Christmas period. Ryanair shares rose 5.6%, sending airline shares higher, after raising its full-year profit guidance.
The Stoxx Europe 600 fell 0.1% to 419.14 points, the FTSE 100 shed 0.1% to 7,587.85, the DAX declined 0.1% to 13,483.31 and the CAC-40 slipped 0.1% to 6,037.11.
The Hang Seng Index rose 0.3% to 28638.20. Technology firms led the gains, with Tencent Holdings up 2.2% and Meituan Dianping advancing 1.1%. Alibaba increased 1.1% to HK$218, reaching a new closing record since its Hong Kong listing in November.
The Nikkei Stock Average finished 0.5% higher at 23850.57, shrugging off the latest data on household spending in Japan showing a steeper-than-expected decline in consumption.
Indian shares rose after an easing of U.S.-Iran tensions helped U.S. equities hit records overnight. The benchmark Sensex added 0.4% to 41599.72, its highest close since Jan. 2. Tech companies led the advance, followed by automakers and some financial firms.
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