The U.S. Futures Are Up In Early Friday Trading
The U.S. markets are indicated to open higher on Friday extending the week’s gains. The move is driven by the August NFP data which shows U.S. labor markets and consumer health remains strong. The headline figure of 130,000 is less than expected and compounded by downward revisions to the previous two months. That data is offset by the fact job gains are positive, unemployment remains low, and wages continue to rise. Average hourly earnings rose a strong 0.4% in the month and are up 3.2% YOY.
The Dow Jones Industrial Average is in the lead in early trading with a gain near 0.50%. The S&P 500 is close behind with an indicated open of 0.45%. The NASDAQ Composite is lagging with a gain of only 0.35%. In other news, the NY Federal Reserve issued a statement today putting the odds of U.S. recession at 39% within the next 12 months.
In stock news, shares of Lululemon shot to the top of the charts after the company reported earnings. The maker of iconic yoga-wear reported a substantial top and bottom-line beat driven by strength of menswear. The company says comps are up 15% and are expected to remain strong as the menswear line matures. Zoom Video also beat on the top and bottom lines sending its shares higher in early trading.
Brexit Drama, It Might Be Entertaining If Not For Being Real
European markets are mixed at midday on Friday after another twist in the Brexit saga. On Thursday, PM Boris Johnson’s brother Jo Johnson resigned his seat on the cabinet. Jo Johnson says family loyalty and national interest had caused unresolvable tension. The move further undermines Boris Johnson’s position and paves the way for his resignation or ousting. Unfortunately, the fate of Britain and the Brexit are cloudier than ever.
The German DAX is up about 0.60% in early trading while the CAC is trailing with a gain of only 0.10%. The UK FTSE 100 is down about -0.10% while traders try to figure out what to do. In stock news, shares of Pandora are up more than 2.25% after the company announced a complete rebranding.
Asia Up, ZTE In The Lead
Asian market are broadly higher at the end of the day on Friday. The average gain is near 0.55% and led by the Hong Kong Hang Seng. Hong Kong markets are in turn led by shares of ZTE which saw gains near 8.75%. The strength is due to a vote of confidence from Italy. Italy says it will promote purchases of ZTE equipment alongside that of Huawei.
This article was originally posted on FX Empire
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