Global Stocks Declined, Crude Oil Picks Up
London: 5 January 2024 (TraderMade): Global markets turned skittish Friday, with most stocks feeling the heat. The S&P 500 and Dow Jones Industrial Average slipped in the US. Similarly, popular European indices, like FTSE 100, CAC 40, and DAX, plummeted.
While whispers of a slowing US job market sent chills down market participants' spines, a silver lining glinted in Tokyo as export-driven companies basked in the dollar's newfound strength against the yen.
Breakdown of the day's market movements:
US stocks: S&P 500 (SPX500) declined by 0.29% to 4679.25, and the Dow Jones Industrial Average (USA30) dipped by 0.31% to 37385. Market participants are awaiting the release of a comprehensive report on the jobs market from the US Labor Department later Friday.
European stocks: Britain's FTSE 100 (UK100) dropped 0.57% to 7670.1, France's CAC 40 (FRA40) declined nearly 0.75% to 7371.8, and Germany's DAX (GER30) slipped 0.42% to 16499.2.
Asian stocks: Japan's benchmark Nikkei 225 (JPN225) slightly declined by 0.097% to 33322.5 as major manufacturers like Toyota Motor Corp. advanced- as the Japanese Yen weakens against the US Dollar, Japanese exporters get better value for their goods and services. Hong Kong's Hang Seng (HKG33) shed 0.021% to 16507.5, while the Shanghai Composite skidded 0.9%. Australia's S&P (ASX200) fell 0.74% to 7472.2, and South Korea's Kospi lost 0.4%.
Oil prices: Benchmark US crude (OIL) added 70 cents to $73.159 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude (UKOIL)- the international standard, rose 63 cents to $78.233 a barrel.
(Please note that prices of various instruments are taken at around 12:48 PM GMT, and percentage change has been calculated considering yesterday's close.)
Market participants are looking for signs of whether the US economy is strong enough to avoid a recession- but not so strong that it reignites inflation. The Federal Reserve keeps close watch to determine if current trends prevail as it weighs the possibility of cutting interest rates.
Some reasons why markets may have been down today
Concerns about the US economy: The upcoming jobs report could give market participants more clues about the health of the US economy.
Geopolitical tensions: The ongoing war in Ukraine and rising tensions between the US and China could also weigh on investor sentiment.
Rising interest rates: The Federal Reserve has been raising interest rates to combat inflation, and this could make it more expensive for businesses and consumers to borrow money.
Overall, it was a mixed day for markets, with some stocks moving higher and others falling. Market participants will watch the upcoming jobs report to see if it provides clues about the future economic direction.
