Global stock markets were mostly up at Friday's close, with Wall Street rebounding, lifted by a stronger-then-expected US jobs report.
Hiring in the world's largest economy surged in September, signalling a resilient economy that could lead the Federal Reserve to raise interest rates again before the end of the year.
Employers added 336,000 jobs in September, up from August's revised gain of 227,000, data from the Labour Department showed.
While Friday's report was apparent evidence that the Biden administration's labour strategy was working, it has led to an unexpected twist in the Federal Reserve's inflation battle, which could lead to consumers facing higher borrowing costs for a longer time.
The US central bank left its target rate unchanged at between 5.25 per cent and 5.50 per cent last month. A majority of policymakers predicted one more quarter-rate increase this year.
Fed chairman Jerome Powell has said the central bank would take a careful, data-driven approach, adding that the Fed needs more than three months of favourable data to determine if it is done with raising rates, but cautioned that more increases could be necessary if the data merits it.
“The US jobs market must do the rest of the heavy lifting if the Fed wants to see inflation return and steady around its 2 per cent monetary policy target. That makes the US employment and unemployment numbers critical for investors, again,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note.
Loretta Mester, president of the Federal Reserve Bank of Cleveland, told CNN that Friday’s jobs report did not change her view that the US labour market remains robust, and that further interest rate rises will depend on upcoming economic data.
“The inflation rate is still too high, the level of inflation remains high, but at least we’re seeing progress on it,” Ms Mester said.
“And whether we need to tighten monetary policy a bit further or not is really going to depend on all the data that we get between now and our next meeting.”
Wall Street indices reversed earlier losses to finish stronger. The Dow Jones Industrial Average gained 0.9 per cent, the S&P 500 rose 1.2 per cent and the tech-heavy Nasdaq Composite surged 1.6 per cent.
For the week S&P 500 and Nasdaq gained 0.5 per cent and 1.6 per cent, respectively, while the Dow shed 0.3 per cent. Year-to-date, they are up 12.2 per cent, 28.3 per cent and 0.8 per cent, respectively.
In Europe, London's FTSE 100 settled 0.6 per cent higher, but posted a sharp weekly loss as government bond yields surged on expectations of higher interest rates.
In other major European indices, Frankfurt's DAX surged 1.1 per cent at the close, while Paris' CAC 40 settled 0.9 per cent higher.
Earlier in Asia, Tokyo's Nikkei 225 settled 0.3 per cent lower, while Hong Kong's Hang Seng index jumped 1.6 per cent. The Shanghai Composite was closed for a holiday.
In commodities, oil prices closed higher on Friday but posted their biggest weekly loss since March amid demand concerns.
Brent gained 0.61 per cent, or $0.51, to settle at $84.58 a barrel while West Texas Intermediate rose 0.58 per cent, or $0.48, to close at $82.63 a barrel.
For the week, Brent dropped about 11 per cent, while WTI posted a more than 8 per cent decline.
Gold, meanwhile, rose 0.7 per cent, or $13.40, to settle at $1,845.20 an ounce on Friday. The precious metal, used as a hedge against inflation, rebounded after nine consecutive sessions of losses.
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
In%20the%20Land%20of%20Saints%20and%20Sinners
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERobert%20Lorenz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Liam%20Neeson%2C%20Kerry%20Condon%2C%20Jack%20Gleeson%2C%20Ciaran%20Hinds%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
Mobile phone packages comparison
Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Anti-semitic attacks
The annual report by the Community Security Trust, which advises the Jewish community on security , warned on Thursday that anti-Semitic incidents in Britain had reached a record high.
It found there had been 2,255 anti-Semitic incidents reported in 2021, a rise of 34 per cent from the previous year.
The report detailed the convictions of a number of people for anti-Semitic crimes, including one man who was jailed for setting up a neo-Nazi group which had encouraged “the eradication of Jewish people” and another who had posted anti-Semitic homemade videos on social media.
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
Scoreline
Saudi Arabia 1-0 Japan
Saudi Arabia Al Muwallad 63’
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Teaching in coronavirus times
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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