Stock markets around the globe were awaiting the release of the nonfarm payrolls this afternoon from the US for direction, with sentiment mixed with Wall Street closing unchanged on Thursday, while Tokyo headed lower.
The CSE General Index remained in the red during the whole of Thursday’s trading
session, with banking stocks, dipping lower. HB, CPB and BOCY slide by 4.2%, 2.8% and 2.5% respectively, absorbing 60% of total trading volumes. LOG was the only gainer of the Main Index advancing by 2.5%.
The CSE General Index ended at 4751.01 points, down 2.66%. At the European front, equity markets ended in a mixed picture. European stock-index futures were little changed before a U.S. employment report that will give investors evidence as to the pace of the slowdown in the world’s largest economy.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 1, or less than 0.1 percent, to 4,369 at 7:40 a.m. in London. The U.K.’s FTSE 100 Index may increase 12, according to CMC Markets.
Stocks retreated in the first two trading days of this year on concern record oil prices will cool profit growth. Today’s report will probably show hiring in the U.S. slowed in December and unemployment rose to a 17-month high.
US markets were broadly flat Thursday helped by a better than expected ADP Employment change last month (40k vs 33k expected). November factory orders rose 1.5% compared to 0.5% expected and 0.7% in October. Watch today’s key December employment and ISM non manufacturing data.
The 10yr yield fell 1.1bp to 3.892% (below its 20D MA). The 2yr-10yr spread fell 7.3bps to -82.1bps (below its 20D MA), a new 52w low.
Market attention is fixed on the nonfarm payroll figures due at 3.30pm Cyprus time with economists forecasting 70k gains. The Dec Unemployment Rate, exp. 4.8%, Change in Manufact. Payrolls, exp.: -15K, Average Hourly Earnings MoM, exp.: 0.3%, Average Weekly Hours, exp.: 33.8 and Dec ISM Non-Manufacturing, exp.: 53.7.
Japanese stocks fell, sending the Topix index to its worst-ever New Year start on concern demand will slow in the U.S. and after Toyota Motor Corp. lowered its 2008 sales forecast for Asia’s largest export market.
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