Stocks Edge Higher Ahead of Jobs Report; Markets Weigh North Korea, Trade Moves
New York (Mar 9) Wall Street futures edged higher Friday as investors extended cautious market gains ahead of today's February employment report amid a global sentiment boost that followed news of a potential summit between the U.S. and North Korea that could significantly reduced tensions in the Asia region.
Although much will change when the jobs report is released at 8:30 am Eastern Time, and caution continues to hang over markets following last night's move by President Donald Trump to formalise import tariffs on steel and aluminium, contracts tied to the Dow Jones Industrial Average were marked 1 points higher from its Thursday close and those linked to the broader S&P 500 trading 1.5 points, or 0.05%, to the downside.
Trump's unprecedented meeting with Kim Jong Un, brokered by South Korean President Moon Jae-in, could accelerate North Korea's intention to give up its nuclear weapons in face of harsh economic sanctions and remove the region's key geo-political risk if the summit proves successful.
The detente helped lift the MSCI Asia ex-Japan index 0.63% into the close of trading, while Japan's Nikkei 225 advanced 0.47%, as investors balanced the prospects of the meeting against Trump's decision last night to formalise stiff tariffs on steel and aluminium imports from most of it trading partners.
However, Trump's move on trade increased investor concern of reciprocation from officials in Europe and Asia, both of which have warned they would react in kind if Trump were to stick to his plans for a 25% tariff on imported steel and a 10% levy on non-American aluminium.
That's kept European markets in a cautious mood this morning, with the Stoxx 600 benchmark rising just 0.01% to 376.66 points ahead of today's February non-farm payroll report from the United States, which is expected to show employers created 200,000 jobs in the world's biggest economy and boosted hourly wages by 0.2%.
The figures could prove crucial to the Federal Reserve's plans to raise interest rates this year, with a faster-than-expected reading wages potentially changing the market's anticipation from three increases to four between now and the end of the year.
Global oil prices were also supported by news of the talks, with Brent crude futures for May delivery marked 36 cents higher from their Thursday close in New York to $63.97 per barrel while WTI contracts for April gained 26 cents a barrel to $60.38.
TheStreet
