24th Aug 2018 13:54
WASHINGTON (Alliance News) - The major US index futures are pointing to a higher opening on Friday, with stocks likely to move to the upside after ending the previous session modestly lower.
The upward momentum on Wall Street comes after US-China trade talks ended without a breakthrough, as widely expected.
Trading activity may be somewhat subdued, however, as traders look ahead to Federal Reserve Chairman Jerome remarks about monetary policy in a changing economy at the Kansas City Fed's economic policy symposium in Jackson Hole, Wyoming.
Following the lackluster performance seen on Wednesday, stocks continued to experience choppy trading on Thursday. The major averages spent the day bouncing back and forth across the unchanged line before closing modestly lower.
The Dow fell 76.62 points or 0.3% to 25,656.98, the Nasdaq edged down 10.64 points or 0.1% to 7,878.46 and the S&P 500 dipped 4.84 points or 0.2% to 2,856.98.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves amid renewed concerns after the US imposed tariffs on USD16 billion worth of Chinese goods, leading to a tit-for-tat retaliation by the Asian nation.
After the US imposed an additional 25% in duties on Chinese imports ranging from motorcycles to steam turbines and railway cars, China's Ministry of Commerce said it would lodge a complaint against the measure under the World Trade Organization's dispute settlement mechanism.
In US economic news, a report released by the Labor Department showed a modest decrease in first-time claims for US unemployment benefits in the week ended August 18th.
The report said initial jobless claims edged down to 210,000, a decrease of 2,000 from the previous week's unrevised level of 212,000. Economists had expected jobless claims to inch up to 215,000.
Meanwhile, the Commerce Department released a separate report showing an unexpected decrease in new home sales in the month of July.
The report said new home sales dropped by 1.7% to an annual rate of 627,000 in July after tumbling by 2.4% to a revised rate of 638,000 in June. Economists had expected new home sales to climb by 2.2%.
Most of the major sectors ended the day showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Gold stocks saw considerable weakness, however, with the NYSE Arca Gold Bugs Index tumbling by 3% on the day.
The weakness among gold stocks came amid a decrease by the price of the precious metal, as gold for December delivery slumped USD9.30 to USD1,194 an ounce.
Commodity, Currency Markets
Crude oil futures are climbing USD0.83 to USD68.66 a barrel after edging down USD0.03 to USD67.83 a barrel on Thursday. Meanwhile, after sliding USD9.30 to USD1,194 an ounce in the previous session, gold futures are rising USD5.60 to USD1,199.60 an ounce.
On the currency front, the US dollar is trading at 111.35 yen compared to the 111.29 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at USD1.1589 compared to yesterday's USD1.1540.
Asia
Asian stocks turned in a mixed performance on Friday as trade war tensions and the prospects of a no-deal Brexit threatened to deepen the risks to global growth.
The oil markets held steady, while the dollar remained buoyant after US-China trade talks ended without any tangible results.
Investors looked ahead to US Federal Reserve Chairman Jerome Powell's big Jackson Hole speech later today for the Fed's views on Turkey's currency crisis and the US-Chinese trade spat.
Chinese stocks fluctuated before closing higher, led by banks. The benchmark Shanghai Composite Index rose 4.81 points or 0.2% to 2,729.43, while Hong Kong's Hang Seng Index shed 118.59 points or 0.4% to end at 27,671.87.
Japanese shares rose for a fourth straight session as the yen remained weak and a government report showed the country's annual inflation stalled in July, raising speculation the Bank of Japan may delay its exit from ultra-loose policy.
The Nikkei 225 Index climbed 190.95 points or 0.9% to 22,601.77, a more than two-week high. For the week, the index jumped 1.5% to snap a three-week losing streak. The broader Topix Index closed 0.7% higher at 1,709.20.
Drugmaker Eisai rallied 2.7% on receiving European Commission approval for the oral receptor tyrosine kinase (RTK) inhibitor Lenvima (lenvatinib). Chugai Pharmaceutical advanced 2.4% and Daiichi Sankyo gained 2.8%.
Australian shares reversed earlier losses to finish little changed after government lawmakers elected Treasurer Scott Morrison as the next prime minister, ending a week of political uncertainty.
The benchmark S&P/ASX 200 Index ended up by 2.90 points at 6,247.30, snapping a three session losing streak. The broader All Ordinaries Index dipped 2.40 points to close at 6,357.90.
Healthcare stocks benefited from the recent softening of the Aussie dollar, with CSL climbing 2.9% and Cochlear adding 1%.
Lender Westpac fell 2.4% after reporting a steep drop in quarterly margins, while the other three banks ended on a mixed note. Mining stocks also ended mixed, with Fortescue Metals Group losing 1.5%.
Europe
European stocks were flat to slightly higher on Friday after US-China trade talks ended without a breakthrough, as widely expected.
Investors are looking ahead to US Federal Reserve Chairman Jerome Powell's big Jackson Hole speech later today for Fed views on Turkey's currency crisis and the US-Chinese trade spat.
While the French CAC 40 Index has risen by 0.3%, the German DAX Index and the UK's FTSE 100 Index are both up by 0.1%.
In economic news, fresh data from Destatis showed the German economy expanded at a faster pace as initially estimated in the second quarter on domestic demand.
The largest euro area economy grew 0.5% sequentially following the 0.4% increase in the first quarter. The rate came in line with the estimate released on August 14th.
Shire PLC shares have jumped. The US Food and Drug Administration has approved a first of its kind drug from the company used to treat patients suffering from a rare swelling disorder.
Oilfield services provider Petrofac has also risen after it announced an agreement to sell Petrofac GSA Holdings to Ithaca Energy (UK) Limited for a total consideration of up to USD292 million.
Irish building materials group Kingspan has soared after its first half sales rose 15% to top 2 billion euros for the first time.
Meanwhile, Swiss semiconductor maker U-Blox has slumped after cutting its full-year revenue, EBITDA and EBIT guidance.
US Economic Reports
New orders for US manufactured durable goods slumped by much more than expected in the month of July, according to a report released by the Commerce Department.
The Commerce Department said durable goods orders tumbled by 1.7% in July after climbing by 0.7% in June. Economists had expected durable goods orders to drop by 0.5%.
Excluding a significant decrease in orders for transportation equipment, durable goods orders rose by 0.2% in July after inching up by 0.1% in June. Ex-transportation orders had been expected to rise by 0.5%.
At 10 am ET, Federal Reserve Chairman Jerome Powell is scheduled to speak about monetary policy in a changing economy at the Kansas City Fed's economic policy symposium in Jackson Hole, Wyoming.
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