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U.S. Index Futures Slightly Rise in Pre-Market Trading, Set for Weekly Gains

Fernanda T
Latest News
July 05 2024 8:14AM

U.S. index futures show a slight increase in pre-market trading this Friday, with indices on track to end the week with gains as investors eagerly await payroll data.

At 06:21 AM, Dow Jones futures (DOWI:DJI) rose 10 points, or 0.03%. S&P 500 futures advanced 0.04%, and Nasdaq-100 futures gained 0.13%. The 10-year Treasury yield stood at 4.337%.

In the commodities market, West Texas Intermediate crude oil for August rose 0.02% to $83.90 per barrel. Brent crude for September fell 0.13%, near $87.32 per barrel. Oil prices are trading close to a two-month high. Hurricane Beryl signals a potentially severe storm season, while reduced U.S. crude oil inventories suggest improved demand.

The most traded iron ore contract on the Dalian Commodity Exchange (DCE) fell 2.03% to $116.35 per metric ton. Benchmark iron ore for August SZZFQ4 on the Singapore Exchange fell 3.3% to $110.2 per ton.

On the economic calendar for Friday, the number of jobs created or lost in the economy (payroll) and the unemployment rate for June will be published at 8:30 AM by the Department of Labor. LSEG estimates point to a slowdown to 180,000 job positions. Additionally, New York Fed President John Williams speaks during today’s session.

Asia-Pacific markets mostly closed lower on Friday. Japan’s Nikkei 225 index ended the day flat after a volatile session, while the Topix fell 0.49%. Japanese household spending unexpectedly fell 1.8% in real terms in May. Average monthly earnings rose 6.4% in nominal terms.

Hong Kong’s Hang Seng fell 1.13%. In China, the CSI 300 dropped 0.43%, and the Shanghai Composite fell 0.26%. Australia’s S&P/ASX 200 fell 0.12%. Conversely, South Korea’s Kospi index rose 1.32%. Among individual stocks, Samsung Electronics (KOSPI:005930) rose 2.96% after estimating that its operating profit in the second quarter would increase nearly 15 times, mainly due to the recovery in semiconductor prices driven by the AI boom.

European markets are trading higher, with a highlight on London-listed stocks, boosted by the Labour Party’s landslide victory in the UK elections. Among individual stocks, Persimmon (LSE:PSN) stands out in the home construction sector with a 4.1% rise. Taylor Wimpey (LSE:TW.) and Barratt Developments (LSE:BDEV) rose more than 3%, while Bellway (LSE:BWY) rose about 2.2%. The market is also digesting Bloomberg news that BNP Paribas (EU:BNP) and UBS are showing interest in acquiring HSBC’s (TG:HBC1) wealth management unit in Germany.

On Wednesday, U.S. stocks rose, with the Nasdaq jumping 0.88% and the S&P 500 rising 0.51%, reaching new records. The Dow Jones fell 0.06%. Wednesday’s economic data showed a contraction in the U.S. services sector, with ISM’s PMI falling to 48.8. The price index slowed to 56.3. Unemployment claims increased to 238,000, and private sector employment rose by 150,000 jobs, below expectations.

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