US Jobs Data, Tariffs Hurt Chinese Stocks

Equities

On Thursday, the FTSE 100 concluded the trading day with a 0.5% gain, buoyed by positive performance in the commodities sector as precious metal miners led the way due to an uptick in gold prices. This rise, however, was tempered by losses among companies trading ex-dividend in London markets, which limited overall gains.

John Wood Group stood out with an 8% increase following news that the board had decided to engage with Sidara on a sweetened takeover proposal.

Across the Atlantic, US indices had a mixed day ahead of the highly anticipated US nonfarm payrolls data release scheduled for Friday. The S&P 500 edged down slightly by 0.02% to close at 5,352.96, while the Nasdaq Composite fell by 0.09% to 17,173.12. In contrast, the Dow Jones Industrial Average managed a modest rise, gaining 0.20% to finish at 38,886.17.

Nvidia saw a decrease of 1.1%, relinquishing its brief status as the second most valuable company globally to Apple. Elsewhere, Lululemon Athletica reported a substantial increase of 4.8% after surpassing quarterly profit and revenue estimates, fuelled by strong demand in China. NIO's US-listed shares dropped by 6.8% following the electric vehicle maker's reported net loss for the quarter. Five Below also experienced a significant decline, tumbling 10.6% after the discount store operator revised its annual net sales forecast downward.

Forex & Commodities

The US dollar remained steady as traders awaited the release of crucial US employment data scheduled for Friday. Meanwhile, the euro saw modest gains, increasing by 0.17% to $1.0887, after a rate cut by the European Central Bank (ECB). The ECB's action, which brought rates down by 25 basis points, comes as inflation in the eurozone shows signs of persisting, complicating the anticipated easing cycle.

In contrast, the British pound was nearly unchanged against the dollar, trading at $1.2790. The yen strengthened against the dollar, rising to 155.65 per dollar, as the Bank of Japan indicated a move towards reducing its massive monetary stimulus, a statement that added some upward pressure on the yen.

Spot gold prices saw a minor reduction, decreasing by 0.2% to $2,371.04 per ounce in early trading, although they are set to achieve a 2% gain this week, marking the first weekly rise in the last three weeks. The movement in gold prices coincides with the US dollar hovering near an eight-week low and the 10-year US Spot silver also faced a downturn, dropping by 0.5% to $31.16 per ounce but still holding over the crucial $30 level and sitting just under an 11-year high.

Oil prices saw a slight increase, with Brent crude rising 2 cents to $79.89 per barrel, and US West Texas Intermediate crude climbing 4 cents to $75.59 per barrel. This uptick comes despite oil being set for a third consecutive weekly loss, influenced by OPEC+ assurances on supply control and potential output adjustments in response to market conditions.