DStv Channel 403 Tuesday, 26 November 2024

Markets largely rise as traders prepare for US jobs data

WASHINGTON - Markets mostly rose on Friday ahead of a crucial US jobs report later in the day and following data showing inflation in the world's largest economy had ticked up slightly.

The labour report comes at the end of a week that has seen traders cheered by figures indicating the world's top economy is showing signs of softening, easing pressure on the Federal Reserve to lift interest rates further.

Investors were also assessing China's latest moves to help the country's battered property sector as authorities face growing calls to introduce a big-bang economic growth stimulus.

Wall Street's three main indexes ended a volatile August on a tepid note Thursday after data showed the Fed's preferred gauge of inflation -- the personal consumption expenditures index -- ticked a little higher in July.

While the reading was in line with expectations, traders were little moved as they focused on the non-farm jobs figures due later Friday, with hopes they will show the labour market continued to soften in August.

Other data this week on job openings, factory activity and economic growth, among other things, have fuelled optimism that the US central bank will not need to tighten monetary policy any more.

Analysts said, however, that there was an acceptance that rates will likely stay elevated for some time as more than a year of increases is allowed to work through the system, with no cuts seen for some time.

Asian investors traded cautiously Friday, with Tokyo, Seoul, Shanghai, Mumbai, Taipei, Manila, Bangkok and Jakarta up but Sydney and Wellington in the red.

Hong Kong was closed because of a typhoon warning in the city.

London rose at the open, while Paris and Frankfurt dipped.

Chinese markets were lifted after the central bank cut the amount of foreign cash lenders must keep in reserve, in a bid to support the yuan.

Dealers also cheered the latest measures to help the property sector, which allow cities to cut down-payments for home buyers and encourage lenders to lower rates on existing mortgages.

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