Oil Prices Hit 14-Month Lows Amid Mixed U.S. Jobs Data and Demand Concerns – APM Capital Market Report – APM Capital

Commodities

Gold prices eased on Friday, retreating from near-record levels reached earlier, after mixed U.S. jobs data cast doubts on the scale of interest-rate cut from the Federal Reserve this month.

Spot gold sold off quite heavily in afternoon trading to fall from a high of $2,529 per ounce, to finish the session at $2,496. 

Oil markets also saw a sell-off on Friday afternoon with West Texas Intermediate (WTI) continuing its downward weekly momentum to finish 2.14% lower at $67.67. Brent futures mirrored this move, falling 2.24% to close at $71.06. Oil Prices appear to be holding at 14-month lows as worries about demand in the US and China and a likely rise in supplies out of Libya offset a big withdrawal from US inventories and a delay to output increases by OPEC+ producers.

Forex

The foreign exchange market showed significant fluctuations on Friday, with major currency pairs experiencing both gains and losses. The US Dollar Index saw a slight increase of 0.09 percent, gaining 0.09 points to close at 101.20.

The Euro/US Dollar (EURUSD) pair saw a slight decline, closing at 1.1084, down by 0.23 percent. The Euro’s performance reflected ongoing pressures as market participants continued to assess the economic outlook in the Eurozone.

Meanwhile, the US Dollar/Japanese Yen (USDJPY) pair also experienced a notable drop, falling by 0.71 percent to 142.41. The weakening of the US dollar against the yen comes amid a broader shift in investor sentiment towards safer assets.

The US Dollar/Canadian Dollar (USDCAD) pair moved in the opposite direction, gaining 0.44 percent to close at 1.3563. The rise in the US dollar versus the Canadian dollar was supported by positive economic data from the US, which bolstered the greenback.

In the British Pound/US Dollar (GBPUSD) pair, the British pound fell by 0.34 percent to 1.3132 against the US dollar. The pound’s slide reflects investor concern.

US market

U.S. stocks fell sharply Friday following the release of a weak employment report for August.

The U.S. stock market closed significantly lower on Friday, weighed down by a jobs report that suggested a continuing slowdown in the labor market but left traders uncertain about the Federal Reserve’s approach to future interest rate cuts.

The latest data from the Labor Department showed that U.S. employers added only 142,000 jobs in August, falling short of analysts’ expectations, and the job growth figures for July were revised downward to 89,000, further missing forecasts. This employment data pointed to a cooling labor market, but it also raised questions about how aggressively the Federal Reserve might move to reduce interest rates in the coming months.

The Standard and Poor’s 500 led the declines, dropping by 94.99 points, or 1.73%, to close at 5,408.42. With a trading volume of 2.747 billion shares, this broad market index saw a steep fall as tech and energy stocks faced heavy selling pressure.

The Dow Jones Industrial Average (DJI) also finished in negative territory, losing 410.34 points, or 1.01%, to end at 40,345.41. Trading volume reached 362.82 million shares as concerns over rising interest rates and economic slowdown weighed on the index’s performance.

The NASDAQ Composite suffered the sharpest decline among the major indices, falling by 436.83 points, or 2.55%, to close at 16,690.83. This technology-heavy index was hit hard by losses in large-cap tech stocks, with a total of 4.558 billion shares traded.

European market

European stock exchanges ended the week on a negative note, with major indices recording significant losses on Friday.

UNITED KINGDOM: The FTSE 100 experienced a drop of 60 points, or 0.73%, settling at 8,181. This decline indicates a weakening in market performance amid broader regional trends. 

EUROPE: Similarly, France’s CAC 40 closed down by 79 points, or 1.07%, ending the session at 7,352, underscoring the challenging market conditions faced by major European economies.

Germany’s DAX index was the most affected, however, plummeting 274 points, or 1.48%, to close at 18,301. 

Asian market

Asian markets drifted Friday as traders positioned themselves ahead of a highly anticipated US jobs report later in the day and following a mixed bag of economic data on the world’s top economy.

Japan’s Nikkei 225 fell by 265.62 points, or 0.72%, to end at 36,391.47, while China’s SSE Composite Index dropped 22.51 points, or 0.81%, closing at 2,765.81

Last Updated on 5 months by News Desk 1