U.K. stocks turned lower Thursday, with many shares falling victim to a surge in the pound after U.K. manufacturing data surprised investors with an unexpectedly strong reading. "An early attempt at a rally in U.K. stocks wilted in afternoon trading as a rally in the pound devalued the foreign earnings of multinational firms," said Jasper Lawler, market analyst at CMC Markets, in a note.
U.S. stocks finished mostly higher on Thursday, recovering from earlier losses, as investors braced for the much-anticipated August jobs report on Friday, which could set the stage for a near-term interest-rate increase by the Federal Reserve. Earlier, stocks took a sharp step lower after a key data point: The Institute for Supply Management manufacturing index in August fell to 49.4% from 52.6% last month. A reading below 50% signals contraction.
Asian shares were down early Friday, as traders await results of the latest U.S. jobs report, the strength of which could help determine the timing of the next interest rate hike. Early in Friday's session, the Japanese yen rose against the U.S. dollar, weighing on export stocks, though the currency later pared some of the gains.
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