x
Breaking News
0

Top 5 Things to Know In the Market on Thursday

EconomyJul 06, 2017 06:31
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 5 key factors for the markets on Thursday

Investing.com - Here are the top five things you need to know in financial markets on Thursday, July 6:

1. Jobs data and service sector activity in focus

Ahead of the jobs report out on Friday, investors will focus on labor market data as they try to adjust for the upcoming government data.

Private payroll processor ADP will release its own report on employment change for June at 8:15AM ET (12:15GMT), amid expectations for the creation of 185,000 jobs.

While the ADP report often shows wide divergences with the government data, it is still considered an important indicator for the U.S. labor market.

Also on the labor front, market players will also digest weekly jobless claims at 8:30AM ET (12:30GMT).

At 10:00AM ET (14:00GMT), the service sector will be on watch as the Institute of Supply Management (ISM) releases its non-manufacturing purchasing managers’ index (PMI) for June.

2. Oil jumps 1% on inventory draw, official data ahead

Oil prices regained ground on Thursday, jumping more than 1%, after an industry report late in the prior session showed a far larger-than-expected crude inventory drawdown.

Data from industry group The American Petroleum Institute late Wednesday showed that U.S. crude inventories fell by 5.8 million barrels, compared to expectations for a draw of just 1.6 million.

The Energy Information Administration was to release its inventory report at 11:00AM (15:00GMT) on Thursday, with analysts expecting a drawdown of 2.28 million barrels.

Both reports come one day later than usual because of this week’s Independence Day holiday.

U.S. crude oil futures jumped 1.51% to $45.81 at 6:05AM ET (10:05GMT), while Brent oil rose 1.38% to $48.45.

3. Geopolitical issues under watch

Market players were keeping an eye on international issues as China's foreign ministry called on Thursday for all sides to remain calm and exercise restraint after the United States said it was ready to use force, if need be, to halt North Korea's nuclear missile program.

Market players kept on eye on developments even as U.S. President Donald Trump visited Poland to meet up with NATO allies.

This was ahead of the G20 summit in Hamburg, Germany on Friday and Saturday. German Chancellor Angela Merkel said she expects there to be “difficult discussions” even as her country’s Foreign Minister said he’s worried that Trump could “start a trade war with Europe”.

4. Global stocks mostly lower after Fed minutes with North Korea, G20 on radar

Global stocks traded mostly lower on Thursday as markets digested the minutes from the last policy meeting of the Federal Reserve (Fed) and kept an eye on geopolitical issues.

Minutes released on Wednesday after the European market close showed that Fed policymakers were increasingly split on the outlook for inflation and how it might affect the future pace of interest rate rises.

Market participants kept a close watch on political developments surrounding North Korea’s launch earlier this week of an intercontinental ballistic missile with the U.S. declaring that it was prepared to respond with force.

Markets also looked ahead to the kickoff of the 2-day G20 meeting with a particular eye on whether U.S. President Donald Trump will follow a protectionist path in world trade agreements.

In this context, European shares traded mostly lower on Wednesday. At 6:06AM ET (10:06GMT), the European benchmark Euro Stoxx 50 lost 1.02%, Germany’s DAX fell 0.74%, France’s CAC 40 shed 0.95% while London's FTSE 100 traded down 0.69%.

Earlier, Asian stocks ended mixed with China’s Shanghai Composite up around 0.2% but Japan’s Nikkei closed down 0.5%.

U.S. stock futures pointed to a lower open on Wall Street in a session ahead of economic data. At 6:09AM ET (10:09GMT), the blue-chip Dow futures lost 0.29%, S&P 500 futures fell 0.40% and the Nasdaq 100 futures traded down 0.78%.

5. German bund yield hits 17-month high with ECB minutes on tap

The yield on the 10-year German bund jumped 15%, or 7 basis points, to 0.544% on Thursday, its highest level since January 2016.

Markets looked ahead to the minutes from the latest meeting of the European Central Bank (ECB) which will be released at 7:30AM ET (11:30GMT).

Last week, comments from ECB president Mario Draghi rocked markets on the back of their interpretation that the leader of the euro area monetary authority had become more hawkish.

ECB “sources” had to leak the opinion that markets had misinterpreted the message.

In that light, investors will likely pay close attention to the minutes which tend to go unnoticed as they search for clues on any discussions of further tweaks to the ECB’s forward guidance or possible hints at a plan for tapering asset purchases.

Top 5 Things to Know In the Market on Thursday
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email