Global Stocks Flat as Investors Await Job Report--Update
October 06 2016 - 6:05AM
Dow Jones News
By Riva Gold
Stock markets were near break-even on Thursday, as investors
bought bank shares and sold bond-proxies ahead of Friday's jobs
report.
Futures pointed to a small opening gain for the S&P 500,
while the Stoxx Europe 600 was flat late morning after swinging
between small gains and losses.
European bank shares advanced, with shares of Germany's Deutsche
Bank up 1.2% and Royal Bank of Scotland Group up 2.1%.
Meanwhile, the real estate and utilities sectors--which as
dividend-payers tend to perform best in an ultralow-interest rate
environment--declined. U.S. utilities shares fell for a
ninth-straight day on Wednesday, in their longest losing streak
since 2002, ahead of Friday's employment report.
Gold also pulled back 0.3% to $1,264 an ounce after posting its
biggest daily loss since 2013 earlier in the week.
A strong jobs report could bolster the case for the Federal
Reserve to raise interest rates in December. Current economic
conditions provide a "strong case" to raise short-term interest
rates "more rapidly," Federal Reserve Bank of Richmond President
Jeffrey Lacker said on Wednesday.
Minutes from the European Central Bank's last meeting are also
expected to be closely watched later Thursday following recent
concerns among investors about the end of its program of
quantitative easing.
Bonds sold off earlier in the week following a media report that
the ECB might begin tapering, which the central bank subsequently
denied. The yield on the 10-year German government bond fell
slightly to minus 0.042% on Thursday, while yields on 10 year U.S.
Treasurys also retreated slightly to 1.699% from 1.718% following
four consecutive days of gains. Yields move inversely to
prices.
Wall Street shares ended higher on Wednesday, bolstered by a
climb in oil prices and upbeat data on the U.S. services sector.
Oil prices reached their highest settlement value since June on
Wednesday after data showed that U.S. stockpiles fell for a fifth
consecutive week, but that rally cooled on Thursday, with Brent
crude oil last flat at $51.86 a barrel.
In currencies, the British pound fell 0.3% against the dollar to
$1.2726. The WSJ Dollar Index, which measures the dollar against a
basket of 16 currencies, inched up 0.1%, with the dollar slightly
firmer against the euro and yen.
Harriet Torry contributed to this article.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
October 06, 2016 05:50 ET (09:50 GMT)
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