Global Stock Indices Sharply Reversed to Gains after Modestly Upbeat U.S. Job Report

U.S. stock futures are trading slightly higher this European afternoon following a key jobs report for August. All three major averages are set to end the week lower after slumping in the last days of August, on course to notch their third negative week in a row. It’s all about the jobs market today.

Meanwhile, the U.S. Labor Department reported that the U.S. economy gained 315,000 jobs last month, down from July's revised gain of 526,000, but above expectations of 300,000 jobs. The unemployment rate ticked up to 3.7%, from 3.5%. Analysts expected a rise of 293,000 jobs for August, compared with a 528,000 increase in July. Average hourly earnings, which increased 0.5% MoM in July against monthly inflation of around 1% on a monthly basis, were expected to rise 0.4% in August. The U.S.’s unemployment rate rose to compared with 3.5% in July. Data on factory orders for July will be released at 10:00 a.m. EST.

In numbers, as of 3:30 p.m. CET, Dow Jones futures reversed decline and edged higher 0.44%. At the same time, S&P 500 and Nasdaq Composite futures both added around 0.55%. Corporatewise, shares of retailer Lululemon (LULU) jumped above 10% in premarket after reporting quarterly results that beat Wall Street’s expectations.

Commoditywise, oil prices rose further in Asia through this European afternoon on a report that G-7 finance ministers are expected to advance a plan to set a price cap on Russian oil. Reuters reported that one European G-7 official said “a deal is likely,” adding the extent of the specifics remains unclear. Meanwhile, Brent crude front month futures rose 3.09% to $95.01 a barrel and U.S. WTI crude futures rose 3.29% to $89.17 a barrel.

Prices of major cryptocurrencies are also on the rise, with the price of Bitcoin (BTCUSD) up 1% just above $20,300. The price of Ethereum (ETHUSD) is up 3%, near $1,650.

European stocks ended a 5-day losing streak, by trading sharply higher at the time of writing. The Europe Stoxx 600 up 1.41% at the time of writing. The British FTSE 100 gained 1.44% while the French CAC 40 Index rose 1.52%, and German DAX climbed 2.43%. Energy companies outperformed in Europe as oil rose to pare a hefty weekly decline before an OPEC+ meeting on supply. Russia looks set to resume gas supplies through its key pipeline as European and G-7 energy ministers discussed so-called ‘price caps” for regional oil imports. In terms of macro, producer prices in the eurozone surged 4% MoM in July, recording the biggest jump in 4 months. Germany’s trade surplus narrowed to €4.9 billion in July from €17.8 billion in the year-ago period.

Asian markets traded mixed earlier today. Japan’s Nikkei 225 fell 0.04%, China’s Shanghai Composite rose 0.05%, while Hong Kong’s Hang Seng Index fell 0.74%. Australia’s S&P/ASX 200 fell 0.3%, while India’s S&P BSE Sensex rose 0.1%.