Global Stocks Mixed ahead of US Jobs Data

Highlights:

• • USA
    The Dow Jones rose by 0.98% or 337.95 points, to 34,754.94. The selective S&P 500 increased by 0.83% or 36.21 units, to 4,399.76. The Nasdaq gained 1.05% or 152.11 points, to 14,654.02. 
  • ASIA
    The Nikkei advanced by 1.3% or 370.7 points and ended at 28,048.94.
    The Kospi closed with a fall of 0.11%, or 3.16 points, at 2,956.30.
    The Hang Seng grew by 0.55% 136.12 points, to 24,837.85.
  • EUROPE
    The EuroStoxx 50 index slipped by 0.26%, the FTSEurofirst 300 lost 0.26% and the Stoxx 600 yielded 0.24%.

Wall Street finishes higher

The New York Stock Exchange finished higher Thursday, relieved by a suspension of the deadline on the debt ceiling and confident in the employment report expected Friday. 

The Dow Jones rose by 0.98% or 337.95 points, to 34,754.94. The selective S&P 500 increased by 0.83% or 36.21 units, to 4,399.76. The Nasdaq gained 1.05% or 152.11 points, to 14,654.02. 

Senators agreed to extend the deadline to raise the debt ceiling

Marc Zabicki, research director at LPL Financial, stated that the surge in equities has everything to do with the tactic between parties in Congress about the debt ceiling. Democratic and Republican lawmakers agreed to extend the short-term debt ceiling to prevent the country from defaulting. 

The political tension around the debt ceiling is linked to the two massive investment plans that the Biden administration wants to push through. Tax increases would partly finance it.

The market is also looking forward to hearing the September job creation report. The Labor Department will release it on Friday.

As for the employment figure, it came up to be close to expectations. 

Around 450,000 new jobs had a positive effect on investors because it confirmed the good health of the US economy. And it happened despite a slight slowdown in the third quarter of the year.

Most sectors advanced, and non-essential goods companies led the rise by adding 1.5%. Meanwhile, basic materials increased by 1.35%, health gained 1.23%, and technology hiked by 0.91%.

The only losers were the public service companies which slid by 0.53%.

Among the companies listed on the Dow Jones, UnitedHealth advanced by 2.60%. Besides, Dow Inc gained 2.29%, Home Depot climbed by 2.08%, and Nike added 2.02%.

As for the companies with the most significant losses, Amgen and IBM suffered a loss of 0.41%, both.

 

Nikkei average continues to grow

The Nikkei kept rising on the Tokyo Stock Exchange. 

The Nikkei advanced by 1.3% or 370.7 points and ended at 28,048.94. 

The rise followed the US stock market. Also, the Chinese stock market ended the National Day holiday and was trading strong. 

TOPIX is 1.15% higher, and the trading value of the first section of the Tokyo Stock Exchange was 3,198,481 million yen. 

Among the 33 industries, mining, transportation equipment, service industry rose noticeably. Meanwhile, only five industries experienced a fall. 

The new chief executive referred to his concept of reformed capitalism again. It includes measures such as a greater tax burden on companies and high incomes that have disappointed investors. 

The multinational technology company Softbank, the benchmark value for Tokyo’s stock market, advanced by 2.84%. Meanwhile, the Japanese automobile leader, Toyota Motor, climbed by 2.88%.

Increases of Lasertec, the manufacturer of components for semiconductors, were also noteworthy. It added 2.02%. Meanwhile, Tokyo Electron climbed by 3.24%. The multinational textile company Fast Retailing, owner of the chain of clothing stores Uniqlo, expanded by 1.41 %.

 

Kospi was unable to hold on to a gaining streak

The Kospi closed with a fall of 0.11% 3.16 points, at 2,956.30. The index started with a rise of 18.36 points. However, the uptrend was reversed, and the trade closed on a bearish trend, failing to keep the winning streak after yesterday’s gain.

Individuals net bought 464.1 billion won. Institutions that had net bought more than 600 billion won the day before sold 453.3 billion won. 

The Seoul foreign exchange market’s won/dollar exchange rate finished trading with a rise of 4.2 won, at 1,194.6 won per dollar. It has been the highest increase in one year and five months.

Among the top stocks by market capitalization, Celltrion surged by 5.16%. Meanwhile, Samsung Biologics advanced by 1.84%, LG Chem gained 3.66%, and Hyundai Motor added 1.99%.

On the other hand, Samsung Electronics closed the week with a loss of 0.14% despite announcing the highest quarterly sales. Meanwhile, SK Hynix shed 1.78% and broke the annual low again. Naver and Kakao slid by about 1%, both.

By sector, textiles and apparel rose sharply, extending by 3.23%. Meanwhile, pharmaceuticals added 1.43%, transportation equipment gained 1.46%, and steel and metals progressed by 0.82%. 

Banks plunged by 4.09%, transport warehouses shed 3.09%, telecoms yielded 2.70%, and non-metallic minerals dipped by 2.41%.

At the same time, the Kosdaq index fell slightly by 0.03% or 0.32 points to 953.11.  

Among the highest market capitalization stocks, Celltrion Healthcare, EcoProBM, and L&F rose sharply. Pearl Abyss and Kakao Games fell by nearly 3%.

 

Technology stocks boosted Hang Seng

The Hang Seng grew by 0.55% 136.12 points, to 24,837.85. Meanwhile, the Hang Seng China Enterprises expanded by 0.72%.

Chinese technology and insurance companies posted significant gains and pushed the index up. 

The sub-indices suffered closed in mixed territory. Commerce and Industry gained 0.78%, and Finance increased by 0.4%. Meanwhile, Real Estate slipped by 0.06%, and Services lost 0.09%. 

Chinese technology giant Alibaba, Ali Health, and insurer China Life posted the biggest increases of the day. Other tech companies such as Tencent and Meituan also performed well, growing more than 2%.

Apart from China Life, the insurance company Ping An added a solid 2.75%. Meanwhile, Hang Seng Bank stood out with a rise of 2.01% in the Financial sub-index.

Aac Tech was the biggest loser of the session, dipping by 12.58%.

Pharmaceutical company Wuxi Bio and sportswear firm Li Ning also suffered significant falls of 5.88% and 5.81%, respectively.

Chinese oil companies closed mixed. Sinopec declined by 2.20%, and Petrochina and Cnooc advanced by 0.49% and 0.56%, respectively.

Mobile operators settled with increases. China Unicom added 1%, and China Mobile climbed by 1.89%.

 

Caution prevents European stocks from rising

The main European stock markets dropped slightly, except London. 

The session on Friday started with a sharp rise but reversed its trend soon. Investors turned cautious due to the expectations of monthly employment figures in the US. 

The EuroStoxx 50 index slipped by 0.26%, the FTSEurofirst 300 lost 0.26%, and the Stoxx 600 yielded 0.24%.