The American stock markets ended last week’s final trading day sharply down. On Friday, statistics were released showing that the number of employed people increased by 114,000 in July, which was lower than estimates. Analysts had expected employment to rise by 175,000 people. Unemployment stood at 4.3 percent, higher than the consensus of 4.3 percent. The S&P 500 dropped 1.8 percent, and the Nasdaq Composite fell 2.4 percent. The Dow Jones Industrial Average traded down 1.5 percent.
Commodities traded mostly negative on Friday. Oil prices fell broadly after reports that China’s diesel demand is weak due to a weak trucking sector. China’s oil demand growth is expected to be only 3.0 percent this year, significantly lower than previous years. OPEC produced 27.0 million barrels per day in July, an increase of 60,000 barrels per day compared to June. The number of active oil rigs in the US remained unchanged last week at 482. WTI crude oil decreased by 2.6 dollars to a price of 73.8 dollars per barrel. Brent crude oil fell by 2.5 dollars to a price of 77.0 dollars per barrel.
Among base metals, there was mixed development. Tin saw the most significant increase, climbing by 2.0 percent. Nickel increased by 1.0 percent, while copper added 0.9 percent. Aluminum and zinc retreated by 0.5 and 0.7 percent, respectively. Lead fell by 0.8 percent. The price of gold decreased by 12.3 dollars to a price of 2,432.3 dollars per ounce.
On the individual companies on the American stock markets, semiconductor manufacturer Intel was the big loser on Friday. The stock plummeted by 26.1 percent after releasing a quarterly report that did not impress investors. Both revenue and earnings were lower than analyst estimates. The company is also cutting dividends and laying off 15,000 employees. E-commerce giant Amazon was down 8.8 percent after reporting a slowdown in online sales growth.
The ten-year US Treasury bond yield fell 18 basis points to 3.80 percent.
The Asian markets are starting Monday morning on a downward trend. Japan is plummeting as investors fear the consequences of a stronger yen. The Bank of Japan has stated that there may be more interest rate hikes, which would strengthen the yen and weaken many Japanese companies. At 07:30, the Japanese Nikkei 225 is down 9.0 percent, the Hang Seng is trading 0.8 percent lower, and the Shanghai Composite Index is down 0.1 percent.
On the home front, new target prices have been announced this morning. Jefferies raised the target price for Securitas to 88 kronor (85) and reiterated underperform. Cantor Fitzgerald lowered the target price for Kinnevik to 108 kronor (131) and reiterated overweight.
It’s a quiet day on the macro front. The day starts at 08:00 with Denmark releasing industrial production data. An hour later, Spain does the same. At 12:00, the Employment Service presents its weekly statistics.
Analysis:
The American stock markets experienced a significant drop at the end of last week due to disappointing jobs data. This led to declines in major indices such as the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. Commodities also saw negative movements, with oil prices falling on weak demand from China. Base metals had mixed performances, while gold prices declined. Individual companies like Intel and Amazon faced challenges, impacting their stock prices.
Asian markets followed suit, with Japan’s Nikkei 225 taking a significant hit. On the home front, target prices were adjusted for companies like Securitas and Kinnevik. Overall, the global market sentiment is cautious, with investors closely monitoring economic indicators and central bank actions for future trends.