Markets drift ahead of payrolls test

The major US equity indices struggled again Thursday, as investors refocused on quarterly earnings and today’s jobs report. Energy was among the strongest sectors yesterday as crude oil future surged nearly 3%. Consumer Discretionary shares and bank equities recovered some of their losses from the day before. By the end of the session, the S&P 500 was down 0.3%, the Dow Jones Industrial fell 0.2%, while the Nasdaq shed around 0.1%. Meantime, major equity bourses in Europe closed sharply lower yesterday, with the Euro Stoxx 50 Index sinking 0.7% amid further pressure from a deteriorating external background. 

Summary for 04.08.2023 

• Most Asian shares moved in a tight range on Friday as traders hunkered down before key labour data due later in the day, while Chinese shares rose on more promise oof stimulus from the government. 
• Futures indicate European and US equities are set for a higher open as traders sifted through the latest corporate earnings reports, while looking ahead to the key monthly jobs report that could influence the interest rate outlook. 
• Oil prices were trading higher this morning and were set for a sixth straight positive week as major producers Saudi Arabia and Russia extended recent supply cuts, although gains were limited ahead of key US payrolls data. 
• The Bank of England raised its policy interest rate by 25 basis points to 5.25% yesterday, marking a 14^th consecutive increase, and bringing borrowing costs to fresh 2008 highs, as the central bank continues to battle high inflation. In a new development, the bank warned that the borrowing conditions may remain tight for a prolonged period. 
• After the market close on Thursday, Apple posted its third straight quarter of declining sales and predicted a similar performance in the current period, hurt by an industrywide slump that has sapped demand for phones, computers and tables. The shares were down 2.0% in extended hour after falling by another 0.7% in the regular session. 
• Amazon.com reported sales growth and profit that beat Wall Street’s expectations as the company delivered goods faster and more cheaply while recent cloud-computing headwinds began to subside. Shares jumped more than 9% in after hours trading. 
• Booking Holdings on Thursday raised its forecast for third-quarter gross bookings as pent-up demand for travel outweighed rising costs and concerns around an uncertain econom, sending its shares up 11.7% in extended trading. 
• Qualcomm shares dropped nearly 9% yesterday after the chipmaker’s quarterly results and forecast both disappointed.