At the time of this writing on Friday, both oil contracts look poised to finish the week lower. Brent is set to close lower for the second straight week, while WTI is about to snap a two-week winning streak. Despite this week’s losses, both contracts remain above their August lows, keeping bullish hopes alive that prices may have bottomed, even if the probability of such scenario appears to have diminished given the lack of further follow-up buying after that late August rally.
Wall Street was set to open lower on Friday as jittery investors await a decision on rate hike by the U.S. Federal Reserve next week. However, the S&P 500 was poised for its biggest weekly gain since July despite the recent volatility that has rocked the global financial market.
StocksThe stock market volatility remained elevated last week, in part because of the increased worries about the health of the global economy. The much-anticipated U.S.-jobs report failed to inspire a rally either as the unexpectedly sharp drop in the unemployment rate and the stronger-than-expected increase in wage growth kept the prospects of a 2015 Federal Reserve rate rise alive.
Heading into the long Labor Day weekend, investors were dealt a curious report from the Bureau of Labor. The headline gain of 173,000 new jobs was most certainly below par. The estimate from Bloomberg before the release called for a gain of 217,000 jobs.
U.S. stock futures pared some gains on Wednesday, but kept Wall Street on track to open higher, after weaker-than-expected private U.S. jobs data, raising the odds that the Federal Reserve would not raise interest rates this month.
This week could be another volatile one for the stock markets. Now, you may be wondering why we are concentrating on the Nikkei as opposed to, say, a U.S. index, given the sheer number of high-impact U.S. data in the week ahead.