Oil production in Azerbaijan
Vostok | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open tells investors everything they need to know, no matter where they are. Do you like what you see? You can register here.
What you need to know today
Weak quarterly start
Japanese markets led losses in Asia on Friday, following Wall Street sell-off ahead of a crucial jobs report as yet another Federal Reserve official hammered expectations this week for looming rate cuts. The Nikkei 225 fell more than 2%, while Korea’s Kospi fell 1%. of Hong Kong Hang Seng Index rose 0.1 percent, while mainland Chinese markets remain closed for a holiday. Oil prices rose, with West Texas Intermediate crude for May delivery exceeding 86 dollars a barrel and Brent for June delivery hitting $90.65 a barrel, their respective highest levels since October 20. Dow Jones Industrial Average closed Thursday down 1.35% at 38,596.98 in its biggest loss since March 2023 and fourth straight daily loss.
Task report preview
Economists expect March US nonfarm payrolls, due Friday morning, to top 200,000, according to the Dow Jones Consensus Forecast. That would be weaker than February’s initial 275,000, but still indicative of a steady pace of hiring. Investors will likely focus on any other information that shows weakening fundamentals in the labor market, looking for clues as to whether the Federal Reserve will keep interest rates cut.
Yellen in China
U.S. Treasury Secretary Janet Yellen began her first full day of official meetings in China, discussing concerns about overcapacity and encouraging Chinese officials to pursue market-oriented reforms. “Overcapacity is not a new problem, but it has intensified and we see emerging risks in new areas,” Yellen said in prepared remarks at an American Chamber of Commerce in China event in Guangzhou.
Chips ahoy
Samsung Electronics said on Friday it expects to post an impressive 931% jump in first-quarter operating profit as chip prices recover. Profit guidance of 6.6 trillion Korean won ($4.89 billion) even beat LSEG’s estimate of 5.24 trillion won.
Technical layoffs, again
Apple is laying off 614 workers in California, according to a new state filing, in the company’s first major round of job cuts since the pandemic. Apple hasn’t been forced into layoffs on the scale of its tech rivals, largely because it hasn’t expanded as aggressively during the Covid-19 pandemic. While the filing did not specify which part of the business Apple plans to cut the numbers, the announcement comes weeks after it canceled a long-running project to build an electric, self-driving car.
[PRO] Pre-earning upgrades
Analysts have turned more bullish on six stocks from around the world this week, raising their price targets ahead of quarterly earnings release season.
The bottom line
Some of the usual safe haven suspects were suspiciously popular this week.
Gold Prices scaled new highs this week. Even the besieged Japanese yen got a rare respite, rising on Thursday from levels against the dollar that many worry could trigger government intervention.
Rising geopolitical tensions in the Middle East were cited as oil prices rose to a five-month high.
Israel behaves preparing for retaliation after an alleged Israeli airstrike on the Iranian embassy compound in Damascus killed several Iranian generals.
All this as US stock markets — which have stood out over the past 12 months — corrected this week on a weak start to the second quarter.
Back-to-back comments from Federal Reserve officials this week also dampened hopes for a first rate cut, which markets expect to happen at the Fed’s June meeting.
With the CBOE Market Volatility Index touching its highest level since late last year, some investors appear to be hedging their positions in anticipation of more volatility ahead.
The sense of danger is undeniable.