While Europe's stock markets were still dominated yesterday by uncertainties surrounding the pandemic development – the EuroStoxx 50 closed -1.7% lower on Thursday – bargain hunters took to the floor on the New York Stock Exchange. The Dow Jones Industrial gained +1.82% to 34,639.79 points, more than making up for the previous day's loss. The S&P 500 gained +1.42% to close at 4,577.10 points, while on the Nasdaq the gains were more moderate at around +0.7%. On the political stage, the US Congress once again averted a feared government shutdown shortly before deadline. The House of Representatives and the Senate approved on Thursday evening an interim regulation that prevents a partial shutdown of government operations, which ensures the funding of the state apparatus until February 18.
In Asia, the announcement by Chinese ride-hailing company Didi that it would delist from the New York Stock Exchange caused a stir. The Chinese group had tangled with Chinese regulators over its USD 4.4 billion US IPO in July and has now said it will move its stock listing to Hong Kong.
This afternoon (2:30 p.m.), the official US labor market report is eagerly awaited, which covers the overall economy apart from the agricultural sector. If the recovery in the labor market continues, this could increase the pressure on the Federal Reserve to possibly accelerate the announced curbing of bond purchases. After strong job growth in October of 531,000 newly filled jobs, analysts expect an increase of 546,000 jobs in November. Meanwhile, short-term labor market data from the US deteriorated again somewhat, but not quite as much as analysts had forecast. The number of initial jobless claims rose last week by 28,000 to 222,000 claims. On average, a stronger increase to 240,000 claims had been expected. Weekly initial claims are considered a leading indicator of labor market developments.
In the euro area, producer prices rose more strongly than expected in October. On an annual basis, the price level increased by just under +22% (consensus +20%) and by +5.4% month-on-month (consensus +3.8%). Producer prices continue to be driven primarily by the energy sector - +62.5% on an annual basis. Producer prices tend to set the direction for consumer prices with a time lag.
|08:45||FR||Industrial Production (October, m/m)||-1.3%|
|09:15||ESP||IHS Markit PMI Services (November)||56.6|
|09:30||EZ||ECB President Lagarde Speech|
|09:45||IT||IHS Markit PMI Composite (November)||54.2|
|09:50||FR||IHS Markit PMI Composite (November)||56.3|
|09:55||GE||IHS Markit PMI Composite (November)||52.8|
|10:00||EZ||IHS Markit PMI Composite (November)||55.8|
|10:30||UK||IHS Markit PMI Composite (November)||57.7|
|11:00||EZ||Retail Sales (October, y/y)||+2.5%|
|14:30||US||Unemployment Rate (Novermber)||4.6%|
|14:30||US||Non-Farm Payrolls (November)||+531,000|
|15:45||US||IHS Markit PMI Composite (November)||56.5|
|16:00||US||ISM PMI Non-Manufacturing (November)||66.7|
|16:00||US||Durable Goods Orders (October)||+0.2%|
|GE||Allianz||Capital Markets Day|
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Source: LGT Bank (Switzerland) Ltd.
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