U.S. stock futures edged higher in pre-market trading on Friday, indicating a recovery week. Investor optimism was fueled by consecutive gains in the S&P 500 and Nasdaq, positive retail sales and jobless claims data, and expectations of interest rate cuts.
At 5:08 AM ET, Dow Jones futures (DOWI:DJI) rose 51 points, or 0.13%, S&P 500 futures were up 0.13%, and Nasdaq-100 futures increased by 0.27%. The 10-year Treasury yield stood at 3.896%.
In commodities, oil prices are down on Friday but are on track for a second consecutive week of gains due to rising demand expectations. Recent U.S. economic data showed positive results, boosting optimism about oil consumption in the world’s largest market. Investors are now focusing on geopolitics and potential impacts from possible Middle East attacks.
West Texas Intermediate crude for September fell 1.36% to $77.10 per barrel, while Brent for October declined 1.12% to $80.13 per barrel.
The U.S. economic calendar for Friday includes July’s housing starts and building permits data at 8:30 AM ET, with expectations of 1.34 million for housing starts and 1.42 million for permits, slightly below previous numbers. At 10:00 AM, the preliminary consumer sentiment index for August will be announced, expected at 66.6. At 1:25 PM, Chicago Fed President Austan Goolsbee is scheduled to speak.
Asia-Pacific markets rose, driven by Wall Street’s recovery and favorable economic data. Japan’s Nikkei 225 jumped 3.64%, reaching 38,000 points, marking its biggest weekly advance since April 2020. South Korea’s Kospi rose 1.99% after returning from a holiday, while Australia’s S&P/ASX 200 gained 1.34%. Hong Kong’s Hang Seng was up 1.81% near the close, while China’s CSI 300 closed 0.11% higher.
In Singapore, non-oil exports in July grew 15.7% year-over-year, surpassing expectations of 1.2%. The increase, driven by electronics and non-electronics products, followed a revised 8.8% drop in June. Exports to Malaysia, the U.S., and China saw significant gains.
In Japan, Prime Minister Fumio Kishida’s resignation is expected to delay but not entirely halt the Bank of Japan’s plans to raise interest rates. The pause will depend on how the leadership contest and market conditions influence the debate on the pace of rate hikes.
In China, tech stocks rose with the help of solid earnings from major e-commerce companies, led by JD.com. The robust results provided relief amid concerns about weak consumption and limited policy support.
In Australia, Reserve Bank Governor Michelle Bullock stated that it is premature to expect rate cuts due to still-high inflation, which is expected to remain above the 2% to 3% target until the end of next year.
Taiwan and Hong Kong are awaiting GDP data, set to be released after the market closes.
In India, the Medical Association called for a 24-hour suspension of non-emergency medical services following the rape and murder of a doctor in a hospital. Essential services will be maintained. The move aims to protest the police’s handling of the case and demand better protections for healthcare professionals.
European markets are up on Friday, led by the automotive sector, signaling a positive end to the week. In the UK, retail sales grew by 0.5% in July, beating the forecast of 0.6% and correcting a revised 0.9% drop in June. This increase, driven by summer discounts and the EuroCup, suggests a stronger start to the third quarter and some relief in the cost of living crisis. Excluding fuel, growth was 0.7%, and online sales accounted for 27.8% of the total, with a 0.8% year-over-year increase.
On Thursday, U.S. stocks continued their upward trend, with the Nasdaq and S&P 500 extending their winning streaks to six consecutive days. The rally was driven by a 1.0% increase in July retail sales, surpassing expectations of 0.3%, and an unexpected drop in jobless claims, which fell to 227,000.
The Dow Jones rose 1.39%, the S&P 500 advanced 1.61%, and the Nasdaq gained 2.34%. Among individual stocks, Walmart (NYSE:WMT) and Cisco Systems (NASDAQ:CSCO) also rose, with the retailer reporting better-than-expected quarterly results and raising its full-year guidance, while Cisco announced restructuring.
On the earnings front, Flowers Foods (NYSE:FLO), CI and T Inc (NYSE:CINT), OneConnect (NYSE:OCFT) are scheduled to report before the market opens.