Global stocks focused on their first weekly gain of three amid a jump in commodity prices as traders prepared for a key report on US jobs later Friday, which could give clues as to when the Federal Reserve will cut monetary stimulus. .
Its broadest Asia-Pacific stock index outside Japan (.MIAPJ0000PUS) rose about 0.4 percent on Friday, with Chinese blue chips (.CSI300) and Japan’s Nikkei (.N225) gaining about 0.3 percent.
Aluminum prices have approached the levels last seen in 2018, and copper is flirting with 10-year highs as investors rely on a rapid global recovery from the US-led pandemic.
Overnight, Wall Street investors amassed in economically sensitive shares of the reflation trade, leading to a record high close on Thursday at the Dow Jones Industrial Average.
The Dow (.DJI) was up 0.9%, the S&P 500 (.SPX) was up 0.8% and the Nasdaq Composite (.IXIC) was up 0.4%.
S&P futures reported further gains, up 0.2% on Friday.
U.S. stocks came together, led by financial and industrial companies, after a report showed that the number of Americans filing new claims for unemployment benefits fell below 500,000 last week for the first time since the COVID-19 pandemic began, signals the recovery of the labor market against the background of a prosperous economy. Read more
The Russell 1000 value index (.RLV) rose 0.8%, outpacing the Russell 1000 growth index (.RLG), which rose 0.5%.
The focus is now shifting to the non-profit wage report on Friday, with between 700,000 and more than 2 million jobs created in April.
“Prepare for payrolls, they could be huge,” wrote Chris Weston, head of research at Pepperstone Broker in Melbourne, in a note to clients.
“The commodity space is the conversation,” and finance is the “bull game,” which enters the payroll, he said.
The secure dollar sank to its lowest level this week against a basket of key counterparts on Friday ahead of the job report as global stock market firmness boosted risk appetite.
The dollar index fell to 90,837 and was on the verge of falling 0.4% this week.
Treasury yields are moving close to their lowest level this month on Friday, further removing support for greenbacks after bond traders largely abandoned better-than-expected initial data on unemployment claims and waited for the report on defaults to give guidance to the market.
The 10-year treasure trove yielded 1.5714% at the start of the Asian session.
Gold moved to a 2.5% weekly gain, the most since December, as the weaker dollar and easing the Treasury’s yield yielded strengthened the precious metal, an inflation hedge, above the key psychological level of $ 1,800 an ounce to continued its last trading at the level of 1813.54 dollars.
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