Stocks mostly rise at end of turbulent week

NEW YORK: Stocks wobbled in trading Friday (Aug 9) but largely closed higher at the end of a roller-coaster week for markets, on worries the US economy could tip into recession.
Wall Street’s top indices opened lower at the start of trading, a day after rallying on unemployment data that soothed concerns that the world’s top economy was set to slump into a downturn.
But stocks regained ground later, ending the day higher with the broad-based S&P 500 and tech-heavy Nasdaq both gaining 0.5 per cent.
Europe’s top indices gave up early gains to sink in afternoon trading, only to bounce higher at the end of the day. Asia equity markets closed mostly higher.
“There’s not a lot of conviction from buyers or sellers,” Briefing.com analyst Patrick O’Hare said in a note to clients.
The reaction to the Thursday unemployment data was in marked contrast to separate US employment numbers a week ago that triggered massive selling across markets at the start of the week.
Since then, equities have seen big fluctuations as traders seek to get hold of the economic outlook for the United States and elsewhere.
“A drop in jobless claims helped alleviate recession fears,” noted Mark Haefele, chief investment officer at UBS Global Wealth Management.
“Markets are now eyeing upcoming (US) inflation and retail sales data, which could lead to future volatility”.
Recent trading sessions have been dominated also by sharp swings for the yen against the dollar, with the Bank of Japan indicating that it is done for now on raising rates and amid uncertainty over the pace of cuts to US borrowing costs.  
The yen rose against the dollar on Friday. 
In commodities trading, oil prices rose slightly.
Thursday’s data showed fewer people than forecast applied for US unemployment benefits last week, tempering worries about the economy.
“Despite the volatility in claims data, especially around this time of year, the data helped allay fears of a more rapid deterioration in the labour market,” said National Australia Bank’s Taylor Nugent.
Last week’s US non-farm payrolls report came in well below forecast, triggering turmoil on markets.
Traders are now awaiting the release of next week’s US inflation data as they attempt to judge the Federal Reserve’s plans for interest rate cuts.
In China meanwhile, data Friday showed consumer inflation rose more than expected in July to hit a five-month high, providing some much-needed positive news on the world’s number-two economy.
China endured a period of deflation between October to January when sliding prices of goods and services heightened worries of an economic slowdown.
New York – Dow: UP 0.1 per cent at 39,497.54 points (close)
New York – S&P 500: UP 0.5 per cent at 5,344.16 (close)
New York – Nasdaq Composite: UP 0.5 per cent at 16,745.30 (close)
London – FTSE 100: UP 0.3 per cent at 8,168.10 (close)
Paris – CAC 40: UP 0.3 per cent at 7,269.71 (close)
Frankfurt – DAX: UP 0.2 per cent at 17,722.88 (close)
EURO STOXX 50: UP 0.1 per cent at 4,675.28 (close)
Tokyo – Nikkei 225: UP 0.6 per cent at 35,025.00 (close)
Hong Kong – Hang Seng Index: UP 1.2 per cent at 17,090.23 (close)
Shanghai – Composite: DOWN 0.3 per cent at 2,862.19 (close)
Euro/dollar: FLAT at US$1.0921 from US$1.0921 on Thursday
Pound/dollar: UP at US$1.2760 from US$1.2750
Dollar/yen: DOWN at 146.63 yen from 147.20 yen
Euro/pound: DOWN at 85.57 pence from 85.63 pence
Brent North Sea Crude: UP 0.6 per cent at US$79.66 per barrel
West Texas Intermediate: UP 0.9 per cent at US$76.84 per barrel