Gold prices hover over the $2k threshold as stocks worldwide tumble
ALBAWABA – Stocks worldwide dipped on Thursday as Wall Street fell ahead of the crucial non-farm US jobs data report this Friday, while gold prices were more or less stable.
Asian and European stocks sank Thursday, extending a rollercoaster week for stocks worldwide, as reports this week reaffirmed the US jobs market was cooling, Agence France-Presse (AFP) reported.
Data released by payroll firm ADP showed a smaller-than-forecast rise in private sector jobs, reinforcing views that the economy was slowing as inflation came down.
Gold prices hover over the $2k threshold as stocks worldwide tumble - Shutterstock
Also, figures published Tuesday also showed job openings were falling, which combined has fuelled bets on the Federal Reserve (Fed) slashing borrowing costs as soon as early next year. Even though bank officials said they were keeping the option of another hike on the table.
The Fed will convene for its upcoming policy meeting next week, and that will be examined over for clues about their plans for 2024.
However the sharp slowdown in job creation is causing some concern.
"The US labour market is showing signs of contracting much faster than expected,” SPI Asset Management's Stephen Innes told AFP.
"This is not necessarily a 'risk-on' panacea,” he warned. That is to say that this may not solve the problems, especially if job losses pick up significantly, Innes explained.
Stocks worldwide fell as oil prices extended gains from Wednesday's rally - Shutterstock
Meanwhile, gold prices rose $6.75 on the ounce, to 2,033.66, up more than 0.33 percent. Gold prices hit an interday high of just over $2,034 earlier on Thursday, according to GoldPrice.com.
Silver was also up 0.13 percent, at $23.96 per ounce.
Stocks worldwide follow Wall Street losses, as gold prices hover
All three main indexes on Wall Street ended in the red, and Innes added that the pullback from November may be down to a fear that rate cut expectations might have been overdone.
Traders are pricing a rate cut of more than one percent next year, he said.
With all eyes on Friday's crucial non-farm payroll figures, Asian traders were pulling out on Thursday.
Tokyo and Manila fell more than one percent each, while Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Mumbai, Bangkok and Jakarta were also in the red.
London, Paris and Frankfurt all fell at the open.
Traders were unimpressed with data showing a better-than-forecast rise in Chinese exports, according to AFP, with the data also showing imports fell unexpectedly. Weaker imports highlighted the continued demand weakness in the struggling economy.
The yen rose more than one percent to 145.60 per dollar – from well above 147 earlier – on hopes the Bank of Japan could shift away from its ultra-loose monetary policy at its next meeting this month.
Stocks worldwide: Markets summary by AFP and Bloomberg
Tokyo - Nikkei 225: DOWN 1.8 percent at 32,858.31 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 16,345.89 (close)
Shanghai - Composite: DOWN 0.1 percent at 2,966.21 (close)
London - FTSE 100: DOWN 0.3 percent at 7,489.85
Dollar/yen: DOWN at 145.60 yen from 147.35 yen on Wednesday
Euro/dollar: UP at $1.0779 from $1.0768
Pound/dollar: UP at $1.2585 from $1.2559
Euro/pound: DOWN at 85.65 pence from 85.71 pence
New York - Dow: DOWN 0.2 percent at 36,054.43 (close)
The Stoxx Europe 600 fell 0.2 percent as of 8:03 a.m. London time
S&P 500 futures were little changed
Nasdaq 100 futures were little changed
Futures on the Dow Jones Industrial Average were little changed
The MSCI Asia Pacific Index fell 0.4 percent
The MSCI Emerging Markets Index fell 0.5 percent
