Wall Street flat at open as layoffs continue to rise modestly
THIS IS A BREAKING NEWS UPDATE. AP’s earlier history appears below.
Wall Street reported small gains before the bell on Thursday ahead of a double dose of US jobs data as anxiety eased over the US House Speaker’s visit , Nancy Pelosi, in Taiwan, despite military maneuvers undertaken by China in response.
Dow Jones Industrials futures rose less than 0.1% while S&P 500 futures rose 0.1%.
Upcoming US labor market data could help investors determine how the Federal Reserve will pursue its aggressive interest rate policy in an effort to keep inflation in check. US jobless claims figures for the past week will be released on Thursday.
Earnings also remain in focus this week as investors analyze the latest earnings and corporate statements to better understand how inflation is affecting businesses and consumers.
Analysts say geopolitical risks remain after Pelosi’s visit to Taiwan in defiance of Beijing. Taiwan on Thursday canceled air flights as China fired missiles near the self-governing island in retaliation for Pelosi’s visit, adding to the risk of disruptions in the flow of Taiwan-made processor chips needed by global telecommunications and telecommunications industries. of the automobile.
China has ordered ships and planes to avoid military exercises that encircled Taiwan, which the mainland’s ruling Communist Party claims as its territory. It had previously banned imports of hundreds of Taiwanese food items, including fish, fruits and cookies.
“Despite the easing of immediate concerns, investors will be alert to any potential escalation in US-China tensions, as any economic sanctions from China are likely to negatively affect risk sentiment and positioning in Asian markets,” said Anderson Alves of ActivTrades.
But overall, Pelosi’s journey so far has had little impact on the markets. She travels to Seoul on Thursday and then travels to Japan.
Stocks in Europe fell somewhat at midday after bigger early gains after the Bank of England launched its biggest rate hike in more than a quarter century, the UK economy said is expected to enter recession in the last three months of the year.
The bank said on Thursday that inflation would accelerate to more than 13% in the fourth quarter and remain “very high” for much of 2023. The forecast reflects a sharp increase from the 9.4% rate recorded. in June.
Bank forecasters say inflation will hit its highest level in more than 42 years amid the doubling of wholesale gas prices resulting from Russia’s invasion of Ukraine. Energy prices will push the economy into a five-quarter recession, with gross domestic product shrinking every quarter in 2023, the bank said.
The French CAC 40 gained 1% at noon, while the German DAX gained 1.1%. Britain’s FTSE 100 rose 0.5%.
In Asia, the Japanese benchmark Nikkei 225 ended up 0.7% to end at 27,932.20. Australia’s S&P/ASX 200 shed earlier gains, shedding just 1 point to 6,974.90. South Korea’s Kospi added 0.5% to 2,473.11. Hong Kong’s Hang Seng rose 2.1% to 20,174.04, while the Shanghai Composite climbed 0.8% to 3,189.04.
India’s Sensex lost 0.6% and Taiwan’s Taiex also fell 0.5%.
Oil prices rose slightly following OPEC’s decision to increase production in September at a much slower pace than in previous months. Benchmark U.S. crude added 41 cents to $91.01 a barrel. On Wednesday, U.S. crude oil fell 4% to settle at $90.66 a barrel. Brent, the international standard, gained 6 cents to $96.84 a barrel.
In currency trading, the US dollar rose slightly to 134.24 Japanese yen from 133.85 yen. The euro traded at $1.0166, little changed from $1.0170.