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A
key jobs report due later in the day is expected to deliver
further signs of growth in the United States, soothing some of
those concerns about the global economy and further boosting the
rising dollar.
The benchmark STOXX index of European shares opened down 0.1%,
following earlier falls in MSCI's broadest index of Asia-Pacific
shares outside Japan as Chinese blue chips suffered from
uncertainty over government policy.
By 1100 GMT, European shares had picked up slightly, with the
STOXX 600 flat, but Germany's DAX, France's CAC 40 and MSCI's
Europe index all up around 0.2% on the day.
Wall Street futures were mixed, with the Nasdaq set to open 0.1%
lower, while Dow Jones and S&P 500 futures were up less than
0.1%.
The Thai baht led losses among emerging markets currencies,
emblematic of how a surge in coronavirus infections and deaths
in some countries around the world is hitting confidence in
their currencies and economies.(Graphic:https://tmsnrt.rs/2PmYOcE)
Turkey's lira was down 0.8% in its fourth straight day of
losses.
China on Friday reported 124 confirmed new coronavirus cases for
Aug. 5, its highest daily count in the current outbreak, fuelled
by a spike in locally transmitted infections. Authorities have
imposed travel restrictions in some cities.
Thailand and Malaysia both reported record daily cases on
Thursday.
"The Delta variants exposed the vulnerability of Asian economies
as the overall vaccination rate is low in Asia," Bank of America
analysts said.
That was weighing on shares in Asia and while the MSCI Asian
benchmark is up 1.6% this week, it is just over 10% below all
time highs hit in February.
In contrast, the MSCI world shares index is just shy of a record
high, which it hit on Wednesday.
EYES ON JOBS REPORT
The S&P 500 closed at record levels the day before after a spate
of strong corporate earnings and a further decline in U.S.
unemployment claims.
Investors were looking for another shot of confidence from U.S.
July employment data due 1230 GMT, expected to show robust gains
albeit both due to seasonal technical factors and underlying
growth. [.N]
Treasury yields extended their gains, having earlier been helped
by the drop in jobless claims.
Benchmark 10-year Treasury yields rose to 1.2583%, approaching a
week high after their U.S. close at 1.217% on Thursday, and
helping the dollar, which rose against the yen to a week high.
Oil prices rose on Friday but were still set for their biggest
weekly loss since October after falls earlier in the week
triggered by rising COVID-19 cases and a surprise build in U.S.
crude stockpiles. [O/R]
U.S. crude was $69.99 a barrel, up 0.47%. Brent crude traded at
$72.22 per barrel, up 1.29%.
The stronger dollar and potential for higher yields hurt gold
with the spot price down 0.41% at $1,796.52. [GOL/]
Ether , the world's second largest cryptocurrency dropped 3% a
day after a major software upgrade to its underlying ethereum
blockchain, which is expected to stabilise transaction fees and
reduce supply of the token.
(Editing by Sam Holmes and Tomasz Janowski)
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