Stocks snap days of losses ahead of US jobs data: Markets Wrap

(Bloomberg) — Global stocks steadied after days of declines as uncertainty lingered over the health of the U.S. economy and the pace of possible Federal Reserve interest rate cuts.

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Europe’s Stoxx 600 index was little changed, with chemical and mining stocks the biggest losers after iron ore fell to its lowest level since 2022. US futures were flat, while Asian shares erased most of the gains after declines in Hong Kong and Japan.

Traders are looking to weekly jobless claims data due later today and Friday’s nonfarm payrolls report to gauge whether the U.S. economy is headed for a soft landing as the Fed prepares to begin easing policy.

Swaps traders increased bets on the pace of rate cuts after a reading on Wednesday’s U.S. job openings missed estimates and the Fed’s Beige Book survey showed stagnant or declining economic activity. Fare prices are now forecast to cut at least 100 basis points this year, including a jumbo cut of 50 basis points.

“We think the soft landing scenario in the US is intact, but we recognize that the next two to three months could be a difficult period,” Eddy Loh, chief investment officer at Maybank Group Wealth Management, told Bloomberg Television. “If the Fed were to cut 50 basis points, the market might perceive that as negative because that means the Fed is seeing something in the economy.”

Treasury yields were little changed after falling on Wednesday on data showing a slowdown in the U.S. labor market. The dollar remained steady.

Iron ore fell to nearly $90 a tonne in trade as China’s main steel industry group advised mills to be cautious about raising output too quickly to avoid stalling a post-summer recovery.

Key events this week:

• Eurozone retail sales on Thursday

• US Initial Jobless Claims, ADP Employment, ISM Services Index, Thursday

• Eurozone GDP, Friday

• US non-farm payrolls on Friday

• The Fed’s John Williams speaks on Friday

Some of the main movements in the markets:

Stocks

• The Stoxx Europe 600 was little changed at 8:35 a.m. London time

• S&P 500 futures rose 0.1%

• Nasdaq 100 futures rose 0.1%

• Dow Jones Industrial Average futures rose 0.1%

• The MSCI Asia Pacific index was little changed

• MSCI Emerging Markets index rose 0.2%

Coins

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.1081

• The Japanese yen was little changed at 143.64 per dollar

• The offshore yuan rose 0.1 percent to 7.1028 per dollar

• The British pound was little changed at $1.3141

The story continues

Cryptocurrencies

• Bitcoin fell 1.5% to $57,200.93

• Ether was down 1.6% at $2,414.75

BONDS

• The 10-year Treasury yield rose a basis point to 3.76%

• Germany’s 10-year yield fell one basis point to 2.21%

• Britain’s 10-year yield fell two basis points to 3.92%

commodities

• Brent crude rose 0.6% to $73.11 a barrel

• Spot gold rose 0.4% to $2,505.70 an ounce

This story was produced with the help of Bloomberg Automation.

—With the assistance of Chiranjivi Chakraborty.

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