Oil rose as prospects for a lasting agreement to reopen the Strait of Hormuz remained elusive. Bonds fell on inflation concerns as traders awaited the US jobs report for clues on the path of interest rates. Global benchmark Brent rose 1.1% to $83.40 a barrel amid tensions in the Middle East and a lack of clarity on a deal to reopen the crucial waterway. Even so, oil is down about 5% for the week, having declined earlier on expectations for an agreement between the US and Iran. Treasury futures edged lower as higher energy prices revived concerns that the Federal Reserve may need to keep interest rates elevated. The Treasury 10-year yield held at 4.68% after climbing seven basis points during the US session. Government bonds of similar tenor in Japan, Australia and New Zealand all fell. Asian stocks slipped 0.2%, led by a 1.5% drop in South Korea. The lack of a deal in the Middle East risks keeping energy prices higher, further weighing on a market already volatile on the artificial intelligence trade. Attention now turns to Friday’s US employment report for fresh clues on the Fed’s policy path. A stronger-than-expected non-farm payrolls reading would reinforce the case for higher-for-longer interest rates. Elsewhere, the dollar strengthened against nearly all of its Group-of-10 peers as expectations of higher interest rates pushed Treasury yields higher. A Bloomberg gauge of the currency’s strength steadied after posting its biggest gain in two weeks during the New York session. Meanwhile, the yen is heading into the end of the week having surrendered nearly half of its intervention-driven gains. Iran will seek to restrict US and Israeli ships from the Strait of Hormuz and require compensation from countries it considers hostile before allowing passage, according to local media reports on a proposed Iran-Oman agreement to manage the strategic waterway. The reports come as officials in both Washington and Tehran have signaled that an accord may be close. President Donald Trump, who recently stepped back from threats to resume military strikes on Iran, said things are “moving along good” when asked for an update. US economic data released Thursday highlighted the resilience of the US labor market, leaving inflation as the key variable for the Fed’s September meeting. Initial jobless claims remained below 200,000 for a third consecutive week, while a separate report showed labor productivity accelerated by more than expected in the second quarter as companies worked to offset higher costs. Traders now turn their attention to Friday’s payrolls report. Economists surveyed by Bloomberg expect employers added 80,000 jobs in July, following a weaker-than-expected gain of 57,000 in June. The report is expected to provide the clearest signal yet on whether the labor market is cooling enough to support expectations for Fed easing later this year. US After Hours TEAM +32.7%, QNST +24.9%, PUBM +21.6%, INDI +20.7%, TWLO +16.5%, FROG +16% higher on earnings; SEZL -28.3%, TTD -24.9%, QDEL -21.6%, SG -15% lower on earnings
Nikkei -0.53% Hang Seng +0.15% CSI +0.83% Kospi -1.02% Shanghai +0.49% Shenzen +1.03%
Eur$ 1.1524 CNH 6.7467 CNY 6.7474 JPY 158.39 GBP 1.3454 CHF 0.8126 RUB 81.6684 TRY 47.7025 WTI$ 78.44 +1.45% Gold 4,266 +0.56% BTC 64,195 -0.30% ETH 1,895 -0.50%
S&P -0.02% Nasdaq +0.15% EuroStoxx -0.17% FTSE -0.13% Dax -0.02% SMI -0.20%
Macro :
- Jane Street in talks to shift its $11bn in debt to investors including Pimco
Keep an eye on :
- ALV GY : Allianz 2Q Operating Profit Beats Estimates
- POST AV : Austrian Post 2Q Revenue Meets Estimates
- AVOL SW : Avolta Acquires 51% Stake in Penha Duty Free; No Deal Terms
- BITTI FH : Bittium 2Q Operating Profit Beats Estimates
- BA US : FAA Asks Airlines to Check Some 737 Maxes for Component Cracking
- CSG NA : CSG NV 1H Adjusted Oper Ebitda Beats Estimates
- CYTK US : Cytokinetics 2Q Total Revenue Beats Estimates
- DTG GY : Daimler Truck 2Q Revenue Misses Estimates
- DV US : Nielsen Reaches $2.15 Billion Deal to Acquire DoubleVerify
- DOCS US : Doximity Shares Jump After 2027 Revenue Forecast Boosted
- DBX US : Dropbox 3Q Revenue Forecast Meets Estimates
- EQL SS : EQL Pharma 1Q Sales Under Estimates
- ENI IM : Exxon Links New $80 Billion Kazakh Oil Venture to Ending Dispute
- ENX FP : Euronext July Total Cash Market Transaction Value M/M -12%
- ENX FP : Euronext July Total Cash Market Transaction Value M/M -12%
- ETL FP : Eutelsat FY Ebitda Meets Estimates
- ETL FP : India plans safe space for local satellite communications players
- G IM : Generali Second-Quarter Profit Rises on Higher Operating Income
- G IM : Generali Second-Quarter Profit Rises on Higher Operating Income
- GDWN LN : Goodwin in Talks to Sell Defense Business, FT Reports
- LXS GY : Lanxess 2Q Sales Match Estimates
- LOTB BB : Lotus Bakeries 1H Revenue Beats Estimates
- MB IM : Mediobanca 2Q Revenue EU1.01B
- MOBN SW : Mobimo 1H Profit CHF126.8M Vs. CHF109.7M Y/y
- BMPS IM : Paschi Beats on Profit as CEO Weighs Options After BPM Setback
- MUV2 GY : Munich Re Cuts FY Insurance Revenue Forecast, Beats Estimates
- RHM GY : Rheinmetall CEO Expects €12 Billion Boxer Contract in December
- ROKU US : Roku Q2 Revenue Up 22% and Net Income Zooms to $164 Million in Huge Beat, Abstains From Providing Outlook Amid Pending Fox Corp.
- SPCX US : SpaceX Shares Climb After $100 Billion Insider Lockup Expires
- TMUS US : Starlink Mobile Threat Exaggerated, T-Mobile CEO Says: FT
- UNI IM : Unipol 1H Direct Insurance Income EU9.02B