Daily Outlook

Stocks Slide Before Jobs Report; Gold Advances

U.S. futures turned lower alongside European stocks before jobs data and word on the latest American stimulus package.

Gold pushed further above $2,000 an ounce for a third day before news on whether the U.S. will approve another trillion-dollar aid package to counter the coronavirus. A dollar index halted its slide near a two-year closing low. The pound rose against the euro after the Bank of England said it won’t tighten policy soon despite signals that the U.K. economy’s rebound is faster than foreseen.

U.S. economic has been mixed. Data showed payroll gains slowing sharply in July, suggesting the pickup in coronavirus cases is putting the brakes on the job market, while service industries expanded at the fastest pace since February 2019. Initial and continuing jobless claims are due later on Thursday.

Goldman Sachs Group Inc. warned investors that a successful coronavirus vaccine might unsettle markets by sparking a sell-off in bonds and rotation out of technology into cyclical stocks.

Reports on initial and continuing jobless claims in the U.S. is due Thursday.Dallas Fed President Robert Kaplan discusses the U.S. economy at a Thursday event.Germany’s June industrial production figures are scheduled for Friday.July U.S. jobs reports expected Friday.

Stocks

Futures on the S&P 500 Index declined 0.3% as of 12:08 p.m. London time.The Stoxx Europe 600 Index fell 1%.The MSCI Asia Pacific Index climbed 0.1%.The MSCI Emerging Market Index increased 0.2%.

Currencies

The Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.2% to $1.184.The British pound jumped 0.4% to $1.3165.The Japanese yen strengthened 0.1% to 105.48 per dollar.The offshore yuan weakened 0.1% to 6.9514 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 0.52%.The yield on two-year Treasuries decreased one basis point to 0.11%.Germany’s 10-year yield sank three basis points to -0.54%.Britain’s 10-year yield declined three basis points to 0.101%.Japan’s 10-year yield increased one basis point to 0.02%.

Commodities

West Texas Intermediate crude declined 1% to $41.80 a barrel.Brent crude dipped 0.7% to $45.01 a barrel.Gold strengthened 0.6% to $2,049.74 an ounce.

Stocks Slide Before Jobs Report; Gold Advances: Markets Wrap, Bloomberg, Aug 6

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