Good morning! Here’s what you need to know in markets on Friday.
1. Business leaders are slamming Trump’s decision to withdraw from the Paris climate agreement. After Trump announced his decision, Tesla and SpaceX CEO Elon Musk said that he will be leaving Trump’s advisory council. Other executives have taken to social media to voice their concern.
2. Private equity firm KKR & Co said on Friday it raised $US9.3 billion (£7.2 billion) for its most recent Asia-focused buyout fund, more than expected and setting a record for the region as it looks for larger deals. Topping its initial target of $US7 billion (£5.4 billion), the size of its Asian Fund III underscores greater opportunities and appetite for deals in Asia Pacific, where private equity firms are increasingly looking to buy control of companies.
3. Oil prices dropped nearly 1 per cent in early Asian trade on Friday, dragged down by ongoing concerns over a global glut in crude supply despite a bigger-than-expected draw in US crude inventories. Brent oil is down 0.63% to $US50.31 a barrel at the time of writing (6.25 a.m. BST/1.25 a.m. ET) and US West Texas Intermediate crude is down 0.74% to $US48.00 a barrel.
4. US stocks ticked up to record highs on Thursday after the ADP payrolls report showed that the US economy added 253,000 jobs in May, well above expectations of 177,000. All three major indices finished up in the green, with the S&P 500 and the Nasdaq touching record highs.
5. Japan’s Nikkei share average broke through the 20,000-point barrier for the first time since December 2015 on Friday after a batch of strong US economic data lifted Wall Street and the US currency against the yen. The Nikkei is up 1.7% to 20,198.50 at the time of writing (6.30 a.m. BST/1.30 a.m. ET). Elsewhere in Asia, the Hong Kong Hang Seng is up 0.37% and China’s Shanghai Composite is down 0.25%.
6. UK construction data is coming. The construction PMI for May, measuring growth in the sector, will be released at 9.30 a.m. BST (4.30 a.m. ET) by IHS-Markit. Economists are forecasting a reading of 52.7, a slowdown from April’s measure of 53.1
7. US job growth likely remained strong in May, a further sign of an acceleration in economic activity that would effectively seal the case for an interest rate increase this month despite sluggish wage gains. Nonfarm payrolls probably increased by 185,000 jobs last month, according to a Reuters survey of economists, after surging 211,000 in April. The nonfarm payroll number will be released at 1.30 p.m. BST (8.30 a.m. ET).
8. Sales on Britain’s high streets fell 1.3% in May, dragged lower by weak demand for clothes and shoes, according to accountancy group BDO’s High Street Sales Tracker. Reuters reports that like-for-like sales in the fashion sector fell 3.6% on the same month a year ago, making May the fourth month of the year to see no growth in sales in stores, BDO said on Friday.
9. Meal delivery service Blue Apron on Thursday offered a detailed look at its financials for the first time as it filed to go public in the US. The main takeaways: Revenue is growing. With the company spending a tonne on marketing, so too are losses. And Blue Apron, which was valued at $US2 billion (£1.5 billion) in its last venture round, says investors can expect more of the latter.
10. Lululemon gained as much as 8% in extended trading on Thursday after the company reported better than expected earnings and revenues, and announced plans to restructure its kids’ clothing line. Ivivva, the activewear brand for girls, will become a primarily online-only business as 40 of the 55 stores close, Lululemon said in its earnings statement.