A preview of the day ahead in the European and global markets of Ankur Banerjee
Investors were looking for just about any positive sign to pick up the battered stocks from Hong Kong and China. And on Friday, they also had a new reason.
Fresh speculation about an imminent easing of China’s COVID-19 restrictions, along with reports that the initial US inspection of Chinese company audits was completed ahead of schedule, boosted investor sentiment, after comments Warmongers from Federal Reserve Chairman Jerome Powell have previously rattled markets.
Earlier this week, rumors based on an unverified social media note that China was planning to reopen in March led to a strong rally. The rumor was dismissed almost immediately, but investors seem to remain hopeful even as COVID cases in China rise.
Asian stocks are up, the dollar is down and the yuan has rebounded. And in the background lurks the Fed and its hawkish policy, with the US wage report due Friday. Economists polled by Reuters expect nonfarm payrolls to have risen by 200,000 jobs in October and any upside surprises will bolster the central bank’s position.
Meanwhile, the pound rose 0.54%, recouping some of its losses after falling 2% after the Bank of England said rates could rise less than markets had expected.
In the corporate world, Twitter, now owned by Elon Musk, will notify employees by email on Friday if they have been laid off, after temporarily closing its offices and barring staff access, according to a memo seen by Reuters.
Key developments that could influence markets on Friday:
Economic Events: October US Nonfarm Payrolls Report; Jobs in October in Canada
Speaker: Luis de Guindos, Vice-President of the ECB
Gains on deck: Hershey, Duke Energy, Telefonica as well as SocGen
Reporting by Ankur Banerjee Editing by Jacqueline Wong
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