By Pete Schroeder
WASHINGTON, Oct 2 (Reuters) – Asian markets were set for a mixed opening on Friday, as a U.S. stimulus deal remained out of reach and investors await fresh U.S. employment data for a read on the economic toll from the coronavirus pandemic.
U.S. markets kicked off the fourth quarter closing higher on Thursday while the dollar sank, as investors tracked stimulus talk updates throughout the day. The September employment report from the Labor Department looms large, following new layoff announcements from the likes of Disney DIS.N and Goldman Sachs GS.N.
Australian S&P/ASX 200 futures YAPcm1 were down 0.46% in early trading, while Japan’s Nikkei 225 futures NKc1 were down 0.09%.
In the United States, an additional economic stimulus package remained elusive despite renewed efforts from Washington negotiators.
After a day of negotiations, House Speaker Nancy Pelosi told reporters she did not expect an imminent agreement with the Trump administration. It remains unclear if policymakers can get something done before the Nov. 3 election.
New data showed U.S. consumer spending was still up in August, but its momentum was slowing as increased unemployment benefits began to dry up. If policymakers cannot agree on more support, the economic toll could worsen.
“The risk is that if disposable incomes continue to fall, the recovery in personal spending will slow or even reverse. The fiscal stimulus stalemate suggests additional government support payments to households are unlikely soon,” said Commonwealth Bank of Australia currency analyst Kim Mundy in a note.
The Dow Jones Industrial Average .DJI rose 0.13%. The S&P 500 .SPX gained 0.53% and the Nasdaq Composite .IXIC added 1.42%.
MSCI’s benchmark for global equity markets .MIWD00000PUS rose 0.55%.
Stimulus talks pushed the dollar to a more than one-week low against a basket of major currencies, with the Chinese yuan, Australian, New Zealand and Canadian dollars all gaining against the greenback. The dollar index was down 0.1% at 93.722 =USD.
Gold rose after its worst month since November 2016 while oil prices continued to fall, adding to a 10% September drop.
Spot gold prices XAU= rose 1.04% to $1,904.97 an ounce. U.S. gold futures GCv1 settled up 1.1%.
Oil prices fell more than 3% as rising coronavirus cases around the world dampened the demand outlook, while a rise last month in member output from the Organization of the Petroleum Exporting Countries also pressured prices.
Brent crude futures LCOc1 settled down $1.37 at $40.93 a barrel. U.S. crude futures CLc1 fell $1.50 to settle at $38.72 a barrel.
China’s stock and bond markets, foreign exchange and commodity futures markets are closed Oct. 1-8 for the Golden Week holiday. South Korea and Hong Kong markets are also closed on Friday for holidays.
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Caphttp://tmsnrt.rs/2EmTD6j
(Reporting by Pete Schroeder; editing by Richard Pullin)
(([email protected]; 202-310-5485;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.