U.S. Futures, Dollar Weaken Before Jobs Data as Oil Falls

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U.S. stocks rose after a two-day slide, while a slump in the dollar sent emerging-market equities to a one-month high. Oil fell after Iran and world powers said they reached an outline accord over nuclear arms.

The Standard & Poor’s 500 Index rose 0.3 percent, while the Stoxx Europe 600 Index slipped 0.2 percent in the final session of the week. The MSCI Emerging Markets Index added 1.4 percent, while the Bloomberg Dollar Spot Index declined 0.6 percent. The euro was little changed at $1.0882 at 5:08 p.m. in New York after rising 1.1 percent in the regular session. The yield on 10-year Treasuries added five basis points to 1.91 percent. Brent crude tumbled 3.8 percent.

Investors are scrutinizing labor-market reports as the Federal Reserve considers raising interest rates. Data Thursday showed jobless claims unexpectedly fell, a day after a private payrolls report missed estimates. U.S. employers probably hired fewer workers in March, economists said before Friday’s report. Iranian President Hassan Rouhani said on Twitter that solutions to the nuclear issue had been found. A deal may lead to the easing of sanctions on Iranian crude exports.

“We probably got a bit too sold off as people read into the recent more negative data, and traders are getting back in,” Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania, said by phone. “Investors are thinking maybe they shouldn’t leave such a short position out there over the weekend in case the jobs data ends up being better than expected.”

Data Watch

While U.S. stock exchanges will be shut for a holiday on Friday, investors will have 45 minutes to react in futures trading after the Labor Department releases its employment report at 8:30 a.m. New York time.

The S&P 500 has fluctuated in the holiday-shortened week around a 15-point range framed by the index’s 50-day and 100-day moving averages. It has gained 0.3 percent in the period and is down 2.4 percent from its latest high on March 2. The gauge on Tuesday capped its ninth straight quarterly gain, the longest streak since 1998.

Data Thursday showed factory orders topped estimates. A day earlier, reports indicated U.S. factories expanded in March at the slowest pace since May 2013, while ADP Research Institute data showed companies added fewer workers last month than economists forecast.

Dollar Decline

The dollar fell for a second day, weakening against all of its 16 major counterparts. The U.S. currency fell 1.1 percent to $1.0883 per euro, and traded at 119.74 yen. The euro rose 1.2 percent to 130.41 yen.

The Stoxx 600’s decline Thursday pared its weekly gain to 0.4 percent. The equity gauge has jumped 16 percent this year amid optimism European Central Bank stimulus will revive the region’s economy, while a weakening euro will boost profits. The rally propelled valuations to the highest in at least a decade last month.

European markets will be closed for holidays on Friday and Monday.

West Texas Intermediate Crude traded lower on speculation a global supply glut will linger. Oil rose the most in two months on Wednesday on data that showed the first drop in U.S. oil production since January.

WTI for May delivery fell to $49.14 a barrel in New York. Brent for May settlement declined 3.8 percent to $54.95 a barrel in London.

Iran Deal

Iran, a member of OPEC, could boost shipments by 1 million barrels a day if penalties are lifted, Oil Minister Bijan Namdar Zanganeh said March 16. Extra supplies would add to a worldwide glut that’s sent oil prices 50 percent lower since last year.

The European Union’s foreign policy chief Federica Mogherini hailed a “decisive step” in the 18-month process of negotiating with Iran. The accord allows for three more months to nail down difference and reach a final settlement.

Gold futures fell for the fourth time in five sessions, sliding 0.6 percent to $1,200.90 an ounce. Silver, platinum and palladium also declined.

Emerging-market stocks rose for a fourth day. The ruble advanced 1 percent, extending a 1 percent rally on Wednesday.

The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong advanced 1 percent. The Shanghai Composite Index added 0.4 percent to the highest close since March 2008. Shanghai traders now have more than 1 trillion yuan ($161 billion) of borrowed cash riding on the world’s highest-flying stock market.

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