-Markets mixed: Ahead of the U.S. jobs data world equity markets are mixed. The MSCI Asia Pacific Index dropped 0.6 percent overnight as the strengthening yen kept pressure on Japanese stocks. In Europe, the Stoxx 600 Index was 0.5 percent higher at 5:53 a.m. ET as Italian banks rose on speculation of government support. S&P 500 futures added 0.3 percent.
-Brexit good for emerging markets: Emerging Asia bonds were a key beneficiary from the Brexit referendum result, data from EPFR Global show, with flows into emerging market debt funds setting a new weekly record in the week ending July 6. South African stocks have had their longest run of net foreign buying since 1999 even as the IMF downgrades that country’s growth forecast. Antonio Cesarano, head of market strategy at MPS Capital Services in Siena, Italy and most successful forecaster for the Brazilian real said that currency is also set to benefit from the increased demand for emerging market assets following the British vote.
-Not so good for the U.K.: There was bad news for the U.K. economy this morning with survey data showing consumer confidence plunged the most in 21 years. More bad news came with BDO research showing retailers had their worst June in a decade, confirming fears shoppers cut spending ahead of the vote. There was no light to be seen in trade data, also released this morning, which showed the U.K. deficit widened to 2.3 billion pounds in May as exports fell. Following the referendum result, the British pound has become the world’s worst performing currency, falling behind the Argentinian peso. On the plus side, there are now bargains to be had if you are in the market for a bespoke suit.
-Oil under $46: West Texas Intermediate futures rose slightly this morning, with a barrel of crude for August delivery at $45.39 at 6:20 a.m. ET as the commodity trimmed its biggest weekly decline in five months. The Merchant Commodity Fund, which returned 9 percent in the first half of 2016, has changed its outlook for raw materials to neutral from bullish for the rest of the year as global uncertainty increases. Gold is set for its first two-day drop since the Brexit referendum. Commodity speculation remains a hot topic in China, where investors are turning to everything from gold to eggs as expectations of central bank intervention increases.
-Keep calm and carry on? British consumers are decidedly not calm since the June 23 referendum when U.K. voters decided to leave the European Union. The political, market and economic fallout since the vote has slammed consumer confidence, according to a report by market research firm, GfK. Consumer confidence suffered its biggest hit in 21 years, according to GfK. «Our analysis suggests that in the immediate aftermath of the referendum, sectors like travel, fashion and lifestyle, home, living, DIY and grocery are particularly vulnerable to consumers cutting back their discretionary spending,» the authors said. Brits who voted to remain in the EU reported a severe drop in confidence. And even those who voted to leave the EU suffered a loss of confidence, although they are much less pessimistic than «remain» voters.
– Crude correction: Traders are closely monitoring oil again since crude prices have dropped by more than 10% since hitting a recent high above $51 per barrel in early June. Crude oil slipped just below $45 per barrel on Thursday but are now trading around $45.50. «The trading action in crude is getting interesting,» noted Mike O’Rourke, chief market strategist at JonesTrading. «Since late March, we have been asserting that the fundamental backdrop for the commodity remains bearish in the intermediate term.»
– Potential market mover — Gap: Shares in Gap (GPS) are rising in extended trading after the retailer issued a stronger-than-expected June sales report. «We are pleased to see better performance across the portfolio this month, partly driven by an improvement in June traffic trends, particularly at Old Navy,» said Sabrina Simmons, chief financial officer at Gap.
-Looking for a big win? If you’re tired of the ups and downs of the markets, perhaps it’s time to buy a ticket for the Mega Millions lottery. The jackpot hit $540 million on Thursday. Lottery officials said «significant public and media interest» spurred an onslaught of new ticket buyers. A continuing surge in interest is likely to push the jackpot even higher before the drawing at 11 p.m. Friday.
-Dallas shooting: 5 police officers killed by snipers during protest: Five officers in Dallas have been shot dead during a street protest against police violence on Thursday night. Here’s the latest: 3 alleged suspects are in custody, Fourth suspect dead after standoff, One suspect claimed bombs were planted downtown, 2 suspects were snipers, shot from «elevated position».