U.S. equity futures edged lower as investors weighed a better-than-forecast payrolls report with growing concern that lawmakers won’t be able to agree on a new round of economic stimulus.
All three major gauges looked likely to open in the red after payrolls increased by 1.76 million and the unemployment rate fell to 10.2% last month. Futures had been down about half a percentage point before the report after President Donald Trump’s latest attack on Chinese tech companies stoked tensions with Beijing.
The dollar strengthened, while gold retreated for the first time in six days. Turkey’s lira slumped to a record against the dollar even after the central bank spent billions to to prop it up. Europe’s benchmark stock gauge edged higher after trading lower for most of the day.
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The encouraging jobs data comes as investors are also focused on the outlook for lawmakers to resolve differences over a new U.S. relief package. With negotiations said to be on the brink of collapse after a meeting Thursday between White House officials and top congressional Democrats, there’s now concern that the fairly positive payrolls number could ease pressure on lawmakers to come to an agreement.
“If this had been a bad number, it would have forced the negotiators to get a deal done,” said Matt Maley, chief market strategist at Miller Tabak & Co. “So in a perverse way, the better-than-expected data raises the odds that nothing will get done soon on the fiscal front.”
WeChat operator Tencent Holdings Ltd. slumped 5% in Hong Kong after Trump signed executive orders prohibiting U.S. residents from doing any business with WeChat, TikTok or the apps’ Chinese owners.
Elsewhere, oil slumped along with copper.
“The economy fell off a cliff at the end of the first quarter of 2020 and we have been slowly climbing back ever since,” said Tony Bedikian, head of global markets at Citizens Bank. “We continue to be cautiously optimistic that the overall U.S. economy has turned a corner, and that the solid job gains announced today will be sustained.”
These are some of the main moves in markets:
Stocks
- Futures on the S&P 500 Index dipped 0.3% as of 9:03 a.m. New York time.
- The Stoxx Europe 600 Index rose 0.1%.
- The MSCI Asia Pacific Index declined 0.7%.
- The MSCI Emerging Market Index decli6ed 0.8%.
Currencies
- The Bloomberg Dollar Spot Index gained 0.3%.
- The euro sank 0.4% to $1.1829.
- The Japanese yen weakened 0.1% to 105.60 per dollar.
Bonds
- The yield on 10-year Treasuries was little changed at 0.54%.
- Germany’s 10-year yield wa little changed at -0.53%.
- Britain’s 10-year yield rose one basis point to 0.12%.
Commodities
- West Texas Intermediate crude fell 0.1% to $41.77 a barrel.
- Gold weakened 0.1% to $2,060.61 an ounce.
- Copper fell 1.1% to $2.878 per pound.
— With assistance by Jeanny Yu, Adam Haigh, Robert Brand, and Yakob Peterseil
"Market" - Google News
August 07, 2020 at 04:48AM
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Stock Futures Slip as Traders Weigh Jobs, Stimulus: Markets Wrap - Bloomberg
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