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Global stock markets: End of week overview

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Stock markets across Europe awaited the official employment figures in the United States, whose publication should influence Wall Street’s trend. On the New York Stock Exchange, the opening was quiet after new highs on the Nasdaq and the S&P 500. The futures of the three main indices were all around 0.15 percent.

At 11:25 GMT, London’s price recovered 0.25 points, Frankfurt’s 0.16 points, while Milan (+0.02 points) was almost balance. Paris (-0.39%) fell slightly more than the others.

However, the trend could well change with the release of the monthly report on employment in the United States by the Department of Labor at 12:30 GMT, the highlight of the session.

On the other hand, the Tokyo Stock Exchange ended strongly up, after the announcement of the withdrawal of the Japanese Prime Minister Yoshihide Suga.

Meanwhile, Chinese stock markets have declined, led by technology stocks following the decline of Alibaba.

According to Michael Hewson, an analyst at CMC Markets UK, “the labor market remains the main reference point for most U.S. policymakers.”

The Fed is poised to announce the start date for reducing its support measures taken to deal with Covid-19 crisis if the labor market is deemed strong enough.

The Fed currently buys $120 billion worth of debt securities each month, liquidity that has helped financial markets reach record highs.

Richard Hunter, analyst at Interactive Investor, says “investors are keeping calm” while “there is consensus that 750,000 jobs were created in August”, a figure “that would probably be enough to keep fears of overheating at bay.”

According to the IHS Markit PMI, China’s service sector activity plunged in August, a decline not seen since last year, in part due to the surge in Covid cases last month.

Mining stocks continue to rise

The London Metal Exchange (LME) hit a record high for aluminum on Thursday, lifting mining stocks.

BHP gained 1.33% to 2,135 pence, Rio Tinto gained 0.96% to 5,458 pence, and Antofagasta gained 0.56% to 1,440 pence in London.

Oil and Bitcoin

At 11:20 GMT, the barrel of North Sea Brent crude for delivery in November was up 0.48% from the previous day’s close, trading at $ 73.38 in London.

The U.S. barrel of WTI for the same month was up 0.13% to 70.08 dollars in New York.

Bitcoin rose 0.61% to $49,865.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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