Equities
Following the West’s lead on Wednesday, Asian markets rallied on Thursday. The Nikkei gained .8% to 8877, as financial stocks led the gains. Sharp tumbled 16% to a 31-year low after warning of a record loss for the upcoming year. The Kospi climbed 1.3%, as LG Electronics advanced 7.4%, posing its 9th straight gain. In China, the Hang Seng and the Shanghai Composite both soared 2%, while Australia’s ASX 200 advanced 1%.
European markets posted modest gains, led by materials stocks, which posted a gain of 2.7%. The DAX rose .6%, the CAC40 edged up .3%, and the FTSE ticked up .1%
Mining group, Xstrata, soared 9.9% after confirming it was involved in merger talks with commodity trader, Glencore. Glencore shares surged 6.9%.
US stocks ended mixed as traders prepared for Friday’s job report. The Dow slipped 11 points to 12705, the Nasdaq advanced .4%, and the S&P 500 edged up .1%.
Mastercard shares jumped 6.7% after profits exceeded analyst estimates for the 7th quarter in a row. Abercrombie and Fitch tumbled 13.7% after releasing weak sales data for the holiday season, and slashed their outlook for the coming year.
Abercrombie & Fitch Shares Continue to Drop
Treasuries and Commodities
US bonds closed mixed after dropping on Wednesday. 10-year notes inched up 2/32 to yield 2/32, while 30-year notes declined 9/32 to yield 3.01%.
The wild ride in natural gas continued, as the energy commodity surged 6.6% to 2.545. Crude oil fell 1.1% to 96.55, and gasoline slid .5% to 2.8771.
Metals traded mostly higher, as silver climbed 1.5% to 34.325, and gold gained .7% to 1761.90. Bucking the uptrend, copper shed 1.5% to 3.7855.
Currencies
Currencies traded in narrow ranges, with the Dollar moving up slightly. The Euro and Swiss Franc both slipped .2% to 1.3149 and 1.0912 respectively, and the Pound lost .3% to 1.5807. The Yen and Australian Dollar closed flat.
Economic Outlook
Weekly jobless claims fell to 367K, 6K better than forecast. Labor costs rose more than expected, while productivity increased less than expected, both positive developments for the employment situation.
Friday’s key report will be January’s non-farm payroll data. Economists are expecting a gain of 150K jobs, down from last month’s 200K gain. The unemployment rate is expected to remain at 8.5%. Also due are the ISM non-manufacturing index, and factory orders.
Earnings are due from Clorox, Tyson Foods, and Weyerhaeuser.
