© Reuters. File image: A passerby wears a protective mask that is shaded in front of the blank price screen on the stock price board after the Tokyo Stock Exchange temporarily suspended all trades due to system problems, amid the Coronavirus Disease (COVID-19) year-on-year.
Written by Kevin Buckland
TOKYO (Reuters) – Global stocks headed for their first weekly gains out of three companies amid a rise in commodity prices, while traders prepared for a major US jobs report later on Friday that could provide clues as to when the Fed will backtrack. For monetary stimulus.
The MSCI Global Equity Markets Index, which tracks stocks in 50 countries, rose 0.1%, on track for a 0.4% gain this week.
Its broader index of Asia-Pacific stocks outside of Japan rose 0.4% on Friday, with leading China stocks higher and around 0.3% each.
Aluminum prices approached levels last seen in 2018 and correlated with their highest levels in 10 years as investors bet on a rapid global recovery from the pandemic, led by the United States.
Overnight, Wall Street investors piled into economically sensitive stocks in the deflationary deal, pushing the stock to a record high on Thursday’s close.
The Dow rose 0.9%, added 0.8%, and added 0.4%.
It indicated further gains, rising 0.2% on Friday.
US stocks, led by financial and industrial firms, rose after a report showed that the number of Americans filing new claims for unemployment benefits fell to less than 500,000 last week for the first time since the start of the COVID-19 pandemic, indicating that the labor market recovery has entered a new phase. Amidst a thriving economy.
The Russell 1000 Value Index rose 0.8%, beating the Russell 1000 Growth Index, which rose 0.5%.
Focus now turns to the nonfarm payrolls report released on Friday, with estimates ranging widely from 700,000 to more than 2 million jobs created in April.
“Get ready for payroll, it can be huge,” wrote Chris Weston, head of research at Pepperstone broker in Melbourne, in a note to clients.
“Commodity space is the talk,” he said, and finance is the “bullish game” in the payroll report.
The safe-haven dollar fell to its lowest level this week against a basket of major currencies on Friday ahead of the jobs report, as the stability in global equity markets boosted risk appetite.
It fell to 90.837, and was on the way to a 0.4% drop this week.
Treasury yields hovered near this month’s low on Friday, removing further support for the dollar, after bond traders largely ignored better-than-expected initial jobless claims data and waited for the nonfarm payrolls report to provide market direction.
The 10-year Treasury yielded a return of 1.5714% early in the Asian session.
Gold is heading for a weekly gain of 2.5%, the largest number since December, as a weaker dollar and declining Treasury yields pushed the precious metal, a hedge of inflation, above the key psychological level of $ 1,800 an ounce to close recent trading at $ 1,813.54.