Futures edge higher.
U.S. stock futures edge up prior to the last session of a topsy-turvy trading week. Tesla shareholders approve a massive pay package for CEO Elon Musk worth about $1 trillion, as the billionaire targets a new era for the electric car giant. The U.S. is set to see a reduction in flight traffic in 40 airports across the country because of a prolonged government shutdown, while a media report says the White House will not allow Nvidia to sell its scaled-back artificial intelligence chip to China.
- Futures higher
U.S. stock futures pointed higher on Friday, suggesting yet another bout of volatility could be facing markets ahead of the final session of a roller-coaster week fueled by concerns over elevated valuations.
By 02:16 ET (07:16 GMT), the Dow futures contract had increased by 100 points, or 0.2%, S&P 500 futures had gained 18 points, or 0.3%, and Nasdaq 100 futures had climbed by 89 points, or 0.4%.
The main averages on Wall Street sank on Thursday, weighed down by a decline in technology shares, resuming a sell-off on Tuesday which had been driven in particular by fears around the sustainability of the tech sector’s sky-high valuations.
European stocks edge mostly higher.
European stocks mostly edged higher Friday as investors digested more quarterly earnings, but weekly losses look likely amid concerns over overheated valuations.
Sentiment boosted by healthy earnings
Sentiment has generally been supported by a healthy earnings season, with European firms expected to report growth of 4.3% in third-quarter earnings, on average, data from LSEG showed earlier this week, above the 0.4% increase analysts expected a week ago.
Daimler Truck (ETR:DTGGe) reported a bigger-than-expected 40% drop in third-quarter operating profit on Friday, but the German auto giant stuck to its annual forecasts on the back of a positive momentum in Europe and a recovery in North America.
The Group of Seven nations’ finance ministers said on Wednesday they will take steps to increase pressure on Russia by targeting those who are continuing to increase their purchases of Russian oil and those that are facilitating circumvention.
Gold prices rise on weaker dollar.
Gold prices nudged higher in Asian trading on Friday, supported by a softer U.S. dollar and growing bets on another Federal Reserve rate cut, even as the metal remained set for a weekly loss.
Spot gold was last up 0.5% at $3,996.07 an ounce by 23:29 ET (04:29 GMT), while U.S. Gold Futures edged 0.3% higher to $4,003.85.
Still, the yellow metal was on track to tick lower for the week, heading for its third consecutive weekly loss.
Softer dollar, Fed easing bets support gold prices
The US Dollar Index fell 0.5% on Thursday and stayed subdued on Friday, making bullion cheaper for holders of other currencies.
The prolonged U.S. government shutdown — which has now entered its second month — has delayed the release of key economic reports, including employment and inflation data, leaving markets with limited official guidance.
The data vacuum has heightened uncertainty and prompted investors to rely on private-sector surveys for economic signals.
A private jobs report on Thursday showed signs of weakness in the labor market, adding to expectations that the Fed could ease policy rates again sooner than previously thought.
“The absence of official data is clouding the situation, but business surveys suggest the Federal Reserve will likely cut rates further despite recent hawkish messaging,” ING analysts said in a note.
Futures pricing now indicates about a 70% chance of a rate cut in December, up from roughly 60% a day ago. Lower interest rates tend to support gold, which yields no interest.
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