Stocks called to gloomy start before US jobs

(Alliance News) - Stocks in London are set to open lower on Thursday, ahead of a handful of data from the US, including initial jobless claims.

IG says futures indicate the FTSE 100 to open down 12.3 points, or 0.2%, at 8,248.40 on Thursday. The index of London large-caps closed down 28.86 points, 0.4%, at 8,269.60 on Wednesday.

Sterling was quoted at USD1.3145 early Thursday, lower than USD1.3147 at the London equities close on Wednesday.

The euro traded at USD1.1076 early Thursday, lower than USD1.1079 late Wednesday. Against the yen, the dollar was quoted at JPY143.75 versus JPY144.24.

In the US on Thursday, Wall Street ended predominantly lower, with the Dow Jones Industrial Average up 0.1%, but the S&P 500 down 0.2% and the Nasdaq Composite down 0.3%.

Kamala Harris and Donald Trump returned to the US campaign trail Wednesday, with new polls showing the White House race remains on a knife-edge less than a week before their crucial first debate.

The match-up comes after the Federal Reserve's Beige Book showed that more regions in the US reported flat or declining economic activity in recent weeks.

"Economic activity grew slightly in three Districts, while the number of Districts that reported flat or declining activity rose from five in the prior period to nine in the current period," the Beige Book said.

Five Districts saw slight or modest increases in overall headcounts, but a few Districts reported that firms reduced shifts and hours. Wage growth was modest, while increases in non-labor input costs and selling prices ranged from slight to moderate.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.1%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was down 0.6%. The S&P/ASX 200 in Sydney closed up 0.3%.

Chinese leader Xi Jinping on Thursday pledged more than USD50 billion in financing for Africa over the next three years and promised to help create at least a million jobs on the continent.

Xi's comments came during a speech at the opening ceremony of a massive summit in Beijing, gathering dozens of African leaders to discuss the continent's economic and political ties with China.

Meanwhile, the US State Department denied on Wednesday that China's consul general in New York had been expelled amid a spying row with Beijing, after the state governor asserted that he had been removed.

Down under, Australia's trade surplus expanded in July as exports climbed while imports edged down.

According to the Bureau of Statistics, Australia's trade surplus increased by 11% to AUD6.01 billion, about USD4.04 billion, in July from AUD5.43 billion in June.

Australia's exports edged up 0.7% in July to AUD43.80 billion from AUD43.52 billion in June. Meanwhile, imports fell by 0.8% to AUD37.79 billion in July from AUD38.09 billion in June.

Gold was quoted at USD2,494.70 an ounce early Thursday, lower than USD2,495.10 on Wednesday.

Brent oil was trading at USD72.87 a barrel early Thursday, lower than USD73.28 late Wednesday.

In Thursday's corporate calendar, there are half-year results from Alfa Financial, Apax Global, Bakkavor, Churchill China, Enquest, Funding Circle, and Glenveagh Properties, among others. There are also full-year results from Ashmore Group, Genus, and Mid Wynd International.

In the economic calendar on Thursday, there are construction PMIs from Germany, France, the eurozone, and the UK. Later in the day, there is a handful of data from the US, including composite PMI, ISM services PMI, and initial jobless claims.

By Holly Beveridge, Alliance News senior reporter

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