Dow futures were trading lower by 0.02% at 26212.00 while Nasdaq 100 futures inched up 0.56% to 10,854.00 and S&P 500 futures rose 0.01% to 3249.00 respectively, at the time of writing.
The U.S. economy contracted by an unprecedented annualized rate of 32.9% in the second quarter as reported by the Commerce Department on Thursday. This quarter posted the worst decline since the Great Depression as the coronavirus pandemic hammered consumer spending.
On the earnings front, Colgate-Palmolive Co, Chevron Corp and Merck & Co Inc are scheduled to report their quarterly results before the market opens on Friday.
On the economic front, Statistics Canada will report May Gross Domestic Product (MoM) on Friday. Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. The previous reading stood at -11.6%. The consensus estimates today’s reading to come in at 3.5%.
European equities were trading in negative territory in early trading on Friday. In the Cash Markets, the CAC 40 was trading lower by 2.13% at 4852.94 and the DAX inched down 3.45% to 12379.65, at the time of writing.
On the data front, Eurostat will report the Consumer Price Index (CPI) (YoY) for July on Friday. The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key indicator to measure changes in purchasing trends and inflation. The previous reading stood at 0.3% and the consensus estimates the reading to come in at 0.2%.
Asia-Pacific markets were trading in mixed territory in the cash markets on Friday. The ASX 200 declined 2.04% and was trading at 5927.80. The Nikkei inched down 2.82 % to 21,710.00 and the Shanghai Composite inched up 0.61% to 3305.65, at the time of writing.
China Federation of Logistics and Purchasing reported the Non-Manufacturing Purchasing Managers Index (PMI) for July on Friday. The official non-manufacturing PMI is based on a survey of about 1,200 companies covering 27 industries including construction, transport and telecommunications. It is the level of a diffusion index based on a survey of purchasing managers in the services industry. The consensus estimates for the index reading stood at 51.2 while the reading came better in at 54.2.
US Dollar Index futures inched down 0.46% to 92.578 and British Pound futures rose 0.33% to 1.3134 while Euro futures inched up 0.50% and were trading at 1.1907 and Japanese Yen futures rose 0.46% to 0.9587, at the time of writing. The dollar was down on Friday morning, touching two-year lows, and on its way to post its biggest monthly decline in a decade as fresh doubts over the U.S economy’s recovery from the COVID-19 pandemic creep in.
In the Commodity Markets, Silver rose 3.74% to $24.238 and Gold inched up 1.55% to $1973.50 while Brent oil prices advanced 0.83% to $43.65, at the time of writing. Oil prices recovered further ground on Friday after touching three-week lows in the previous session, responding to a record decline in U.S. growth as the coronavirus ravaged the world’s biggest economy and oil consumer.
In the Cryptocurrency Markets, Bitcoin increased 0.87% to 11095.60 and Ethereum inched up 5.18% to 336.00 respectively in the last 24 hours. In news related to the cryptocurrency markets, Recent Q2 financial details from blockchain-involved company ‘Overstock’ listed on Nasdaq showed triple-digit percentage growth as compared to the same time in 2019. The Total net revenue was $783 million which showed an increase of 109% year over year and the Gross profit was $180 million or 23.0% of total net revenue, an improvement of 321 basis points year over year.
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