Global Markets Breathe a Sigh of Relief Ahead of Crucial US Jobs Report
As the world waits with bated breath for the release of the US jobs data, European and US stock futures are trending upward, mirroring the optimism in Asian equities. The recent oil price surge, sparked by Middle East tensions, has eased slightly, but investors remain cautious about potential supply disruptions.
In the equity markets, the Euro Stoxx 50 futures rose 0.2%, while S&P 500 contracts advanced 0.1%. Japanese and South Korean stocks posted gains, while mainland China’s markets remained closed for a holiday. A gauge of Chinese shares in Hong Kong also climbed, as traders assessed the sustainability of the recent rally and awaited details on fiscal stimulus and holiday spending.
The US dollar index, poised for its biggest weekly gain in nearly six months, declined marginally, as traders pared back expectations for aggressive rate cuts. Treasury yields, which surged to levels not seen since September, were flat. Crude oil prices, which rose over 5% to a one-month high on Thursday, eased slightly, amid concerns about potential supply disruptions from Iran.
The yen strengthened 0.6% against the dollar, recouping some of its recent losses, after Japanese Prime Minister Shigeru Ishiba indicated that the nation isn’t ready for another interest-rate increase. Investors are now focusing on the US jobs report, due on Friday, which is expected to provide insight into the health of the US economy.
Economists forecast the unemployment rate to hold steady at 4.2% in September, while payrolls are expected to rise by 150,000. Any surprise in the report could impact market expectations for interest rates and the dollar’s value. As the global economy navigates geopolitical uncertainty, investors are seeking reassurance from economic indicators, including the Institute for Supply Management’s services index, which posted its best reading since February 2023.
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