Friday 08.10 GMT
What you need to know
- Europe adds to global stock momentum after rally holds in Asia and US
- FTSE 100 touches fresh record high above 7,700 points
- US jobs data and implications for pace of Fed policy tightening to test sentiment
- Brent crude slips back but continues to trade around $ 68 a barrel
- Gold falls and bond yields tick higher as rising risk appetite hits safer assets
“We expect wage data to once again be the key potential market driver in this month’s non-farm payrolls report,” says Matthew Luzzetti, senior economist at Deutsche Bank.
“The report should point to solid momentum for employment and economic growth entering the new year, perhaps enough to raise Fed worries at the margin that the labour market is at risk of overheating in 2018.”
Global equities are maintaining their record-breaking start to the year, as optimism over the prospects for the world economy shows little sign of abating.
European stocks are rising after further gains in Asia and fresh records overnight on Wall Street. The strong sentiment faces a test from US jobs and wages data due later in the session, which will play into expectations for inflation and the pace of monetary policy tightening at the Federal Reserve.
It is expected to show the creation of 190,000 jobs outside the agricultural sector in December, with year-on-year average earnings growth of 2.5 per cent, in line with the rise seen in November.
In the run-up to the numbers, the dollar index is up 0.1 per cent ahead of the data at 91.957, leaving it trading around four-month lows.
The yield on 10-year US Treasuries is flat at 2.46 per cent.
The Europe-wide Stoxx 600 is up 0.3 per cent in opening trade, with the Xetra Dax 30 rising 0.5 per cent in Frankfurt. London’s FTSE 100 touched a fresh record high at 7,705.61, a rise of 0.2 per cent.
Japan’s Topix index is up 0.9 per cent after rising 2.6 per cent on its first trading day of the year on Thursday to mark its highest close since late-1991.
Mining companies in Australia jumped after commodity prices rose to a three-year high. The ASX All Ordinaries Gold index and the ASX 300 Metals & Mining index added 1 per cent and 1.2 per cent, respectively, underpinning a 0.7 per cent gain for the broader S&P/ASX 200 in Sydney.
The Kospi Composite index in Seoul is 1.3 per cent higher, led by technology stocks.
The gains are softer in China. Hong Kong’s Hang Seng index is up 0.1 per cent and the CSI 300 index of major Shanghai and Shenzhen stocks is 0.3 per cent higher.
The three main US equity indices again set record closing highs overnight and the Dow Jones Industrial Average broke above 25,000 for the first time.
Brent crude, the international benchmark, is off 0.4 per cent at $ 67.81 a barrel having settled above $ 68 a barrel for the first time since 2015 on Thursday.
Gold is down 0.3 per cent to $ 1,318 an ounce, pulling back from a 3½-month high of $ 1,325 an ounce touched on Thursday.
The Bloomberg Commodity Spot Index, which tracks the price of 22 raw materials, on Thursday reached its highest since 2014 when the oil market crash started.
The euro is slipping back after its bright start to the new year, and its strong run over 2017, leaves it looking tired. The shared currency is down 0.1 per cent at $ 1.2060.
The pound is flat at $ 1.3551.
The Australian dollar is down 0.1 per cent at $ 0.7856 against its US counterpart after Australia’s trade balance recorded a deficit in November, below market expectations.
The Japanese yen is 0.4 per cent weaker at ¥113.13 per dollar after a survey showed Japan’s services sector weakened to a three-month low in December.
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