Top 5 Things to Know in the Market on Friday

Here are the top five important updates in financial markets for Friday, August 5:

1. Anticipation for the July Jobs Report

The U.S. Labor Department is set to release the jobs report at 12:30 GMT (8:30 AM ET) on Friday. Analysts expect to see job growth of 180,000, with the unemployment rate predicted to decrease to 4.8% from the previous 4.9%. Additionally, average hourly earnings are anticipated to rise by 0.2%, following a 0.1% increase last month. A strong jobs report could indicate an improving economy, supporting potential interest rate hikes in the near future, while a disappointing report might increase uncertainty about the economic outlook.

2. Dollar Weakens Ahead of NFP Data

The U.S. dollar has faced downward pressure as expectations for another Federal Reserve rate hike this year have waned. This follows recently released weak data regarding U.S. second-quarter economic growth. As of Thursday’s market close, futures indicate only a 9% likelihood of a September rate hike, while the chances of a hike by the end of the year stand at 32.1%.

3. Gold Reaches Four-Week High Ahead of Employment Data

Gold prices have climbed, buoyed by the Bank of England’s recent decision to lower interest rates and in anticipation of the U.S. employment report due later in the day. On the Comex division of the New York Mercantile Exchange, December gold futures increased by 0.12% to $1,369.00 as of 8:55 AM GMT (4:55 AM ET).

4. Oil Prices Slide After Two-Day Rally

Oil prices have dipped, ending a short-covering rally as market participants are concerned about oversupply from crude and refined products. Investors are also cautious about a potential slowdown in China’s imports. Profit-taking followed a two-day rally, and traders are looking ahead to weekly data from oilfield services provider Baker Hughes. Last week marked the fifth consecutive week of rig gains in the U.S., raising concerns of a rebound in domestic production, which could exacerbate supply glut fears. As of 8:56 AM GMT (4:56 AM ET), oil prices fell by 0.48% to $41.73, while Brent crude decreased by 0.61% to $44.02.

5. Global Stocks Rise, Cautiously Awaiting Jobs Report

Global stock markets have posted gains following a larger-than-expected stimulus package from the Bank of England, which impacted the pound. However, caution prevails ahead of the U.S. nonfarm payrolls report. European markets have reacted positively, with London’s benchmark nearing a one-year high thanks to the recent policy change from the Bank of England. In pre-market trading, U.S. futures also indicated a higher open, with the blue-chip index rising 27 points (0.15%) as of 8:57 AM GMT (4:57 AM ET).