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What’s happening: US stocks settled higher on Thursday, with the Dow Jones index and the S&P 500 surging to their highest levels in a week.
What happened: The US issued weekly jobless claims data, which showed an unexpected decline in claims last week, signalling a recovery in job growth.
However, a decline in Alphabet’s shares weighed on the tech sector, limiting the overall gains for the Nasdaq.
Why it matters: Data released by the US on Thursday showed that the number of persons filing for jobless benefits in the US had declined by 6,000 to a reading of 213,000 in the latest week. This took the jobless claims to the lowest level since April and was better than market estimates of 220,000.
The recent reading signalled strength in the US labour market, despite the policy tightening measures by the Federal Reserve in recent quarters.
Other data released on Thursday showed the Philadelphia Fed Manufacturing Index fell to a reading of -5.5 in November, from 10.3 in the previous month, versus market expectations of 8. Also, US existing home sales climbed by 3.5% to an annualised rate of 3.96 million in October.
After remaining highly volatile during the trading day, shares of AI chipmaker Nvidia closed higher by 0.5% on Thursday, following the release of higher-than-expected quarterly results. Earlier this month, Nvidia overtook Apple to become the world’s largest company. The broader Philadelphia SE Semiconductor index gained 1.6% on Thursday.
Alphabet’s stock fell to a four-week low on Thursday, after the US Department of Justice argued to a judge that Google must divest its Chrome browser. Shares of Amazon declined 2.2% during the session on reports saying that the company is likely to face an EU investigation next year.
Shares of Deere rose around 8% after the machinery manufacturer reported better-than-expected fourth-quarter profits, while Snowflake’s stock climbed around 33% after management raised their product revenue outlook for the year.
The blue-chip Dow Jones index jumped 461.88 points, or 1.06%, to close at 43,870.35 on Thursday, while the S&P 500 added 0.53% to settle at 5,948.71. The Nasdaq 100 inched up 0.36% to 20,740.78.
What to watch: Investors await the release of economic data on S&P Global manufacturing PMI (1845 UAE Time), S&P Global services PMI (1845 UAE Time) and Michigan consumer sentiment (1900 UAE Time) from the US today. The S&P Global US manufacturing PMI, which was revised higher to 48.5 in October versus a flash reading of 47.8, is expected to increase further to 48.8 in November. Analysts expect the S&P Global services PMI to improve to 55.2 in November, from 55 in October, while the University of Michigan consumer sentiment index is expected to rise to 73 in November, from 70.5 in October.
Investors will also closely monitor remarks from Fed members before the central bank’s next meeting in December, with expectations of an interest rate cut of 25 basis points.
Context: The EUR/USD forex pair edged higher on Friday, as investors monitored corporate earnings reports and economic data releases.
Details: Investors assessed the much-awaited results from leading AI chipmaker Nvidia, which reported better-than-expected earnings for the third quarter.
Shares of JD Sports declined more than 15% on Thursday, after the British sports retailer warned that profits would come in at the lower end of its forecast range for the year.
On the economic data front, the Eurozone’s consumer confidence declined by 1.2 points to a reading of -13.7 in November. The figure also came in worse than market expectations of -12.4.
Rising geopolitical concerns provided a boost to the safe-haven US dollar, which limited the overall gains for the EUR/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.05% to 107.03 this morning.
The EUR/USD forex pair added just 0.01% to reach 1.0475 this morning, while the EUR/GBP fell 0.02% to 0.8318. The STOXX Europe 600 Index gained 0.41% to close at 502.54 on Thursday.
What to watch: Investors await the release of economic data on Eurozone’s HCOB composite PMI flash (1230 UAE Time), HCOB manufacturing PMI flash (1230 UAE Time) and HCOB services PMI flash (1230 UAE Time) today. Analysts expect the Eurozone manufacturing and services PMI for November to remain flat at 46 and 51.6, respectively.
Other Markets: Asian indices traded mostly higher today, with the Nikkei 225 and Hang Seng up by 0.76% and 0.53%, respectively, and China’s Shanghai Composite Index down by 0.05%.
UN secretary general António Guterres’s spokesperson said the use of a new ballistic missile by Russia against Ukraine was “concerning.” The news sent the safe-haven US dollar index higher in forex trading this morning.
Singapore’s current account surplus widened to S$34.14 billion in the third quarter, from S$33.96 billion in the year-ago period, lending support to the SGD/USD forex pair.
Japan’s au Jibun Bank services PMI climbed to 50.2 in November, from 49.7 in the previous month. The country’s services activity going into the expansion zone sent the JPY/USD pair higher in forex trading this morning.
UK’s GfK consumer confidence index rose by 3 points to a reading of -18 in November. This being the first improvement in consumer confidence in three months lent support to the GBP/USD forex pair.
Australia’s Judo Bank manufacturing PMI rose to 49.4 in November, from 47.3 in the previous month, which sent the AUD/USD pair higher in forex trading this morning.
France’s HCOB composite PMI Flash (1215 UAE Time), HCOB manufacturing PMI flash (1215 UAE Time) and HCOB services PMI flash (1215 UAE Time), Germany’s HCOB composite PMI flash (1230 UAE Time), HCOB manufacturing PMI flash (1230 UAE Time) and HCOB services PMI flash (1230 UAE Time), UK’s S&P Global composite PMI flash (1330 UAE Time), S&P Global manufacturing PMI flash (1330 UAE Time) and S&P Global services PMI flash (1330 UAE Time), India’s foreign exchange reserves (1530 UAE Time), Mexico’s GDP growth rate (1600 UAE Time) and inflation rate (1600 UAE Time), Canada’s new housing price index (1730 UAE Time) and retail sales (1730 UAE Time), US Baker Hughes oil rig count (2200 UAE Time) and Baker Hughes total rig count (2200 UAE Time), as well as Argentina’s economic activity (2300 UAE Time).
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