LONDON, Oct 7 (Reuters) – Markets drifted sideways on Friday, with investors waiting for U.S. non-farm payrolls figures before the opening bell on Wall Street, though holding out little hope they will alter the prospect of more hefty interest rate rises to come.
U.S. stock index futures were little changed.
Credit Suisse (CSGN.S) shares gained 6.8% after it announced it will buy back up to 3 billion Swiss francs of debt following steep falls in its stock price on unsubstantiated rumours that its future was in doubt.
Stock indexes largely erased initial losses on chipmakers Samsung (005930.KS) and AMD flagging a slump in demand, blaming inflation, higher interest rates and the impact of Russia’s invasion of Ukraine.
Weak German industrial production in August provided further evidence that Europe’s biggest economy continues to slide into recession, ING bank said.
The dollar was flat, but crude oil prices rose 1% as output cuts loomed.
Risk-averse investors piled into cash at the fastest weekly rate since April 2020 in the week to Wednesday, BofA Global Research said.
“With no concrete signs yet of peak inflation having been reached, coupled with a labour report today that is unlikely to suggest to the Fed that its current policy stance is having a material negative impact on growth, the outlook for equities, bonds and risk appetite in general, continues to look downbeat,” Stuart Cole, head macro economist at Equiti Capital, said.
In Europe, the STOXX (.STOXX) index of 600 leading companies was slightly firmer, heading for its largest weekly gain since late July, but still down about 19% for the year.
The immediate focus is on earnings for the United States and whether consumers are holding up in the teeth of rate hikes, Patrick Spencer, vice chairman of equities at Baird Investment Bank, said.
