Stocks pause after days of losses ahead of U.S. jobs data: Markets Wrap

(Times of Update) — Global stocks stabilized after days of declines as uncertainty persisted over the health of the U.S. economy and the pace of possible interest rate cuts by the Federal Reserve.

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

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

Swaps traders increased their bets on the pace of rate cuts after Wednesday’s U.S. job openings data came in below expectations and the Fed’s Beige Book survey showed economic activity flat to falling. Analysts now expect at least a 100 basis point cut this year, including a massive 50 basis point cut.

“We think the soft landing scenario in the U.S. is intact, but we recognize that the next two to three months could be a tricky period,” Eddy Loh, chief investment officer at Maybank Group Wealth Management, told Times of Update Television. “If the Fed were to cut rates by 50 basis points, the market could see that as a negative sign because it would mean the Fed is seeing something in the economy.”

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

Iron ore fell to trade near $90 a tonne as China’s top steelmaker advised mills to be cautious about ramping up production too quickly to avoid stifling the post-summer recovery.

Main events of the week:

• Eurozone retail sales, Thursday

• U.S. Initial Jobless Claims, ADP Employment, ISM Services Index, Thursday

• Eurozone GDP, Friday

• U.S. Nonfarm Payrolls Statistics, Friday

• Fed Chairman John Williams Speaks Friday

Some of the main movements in the markets:

Actions

• The Stoxx Europe 600 index 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

• The MSCI Emerging Markets Index rose 0.2%

Currencies

• The Times of Update 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% to 7.1028 per dollar.

• The pound was little changed at $1.3141.

The story continues

Cryptocurrencies

• Bitcoin fell 1.5% to $57,200.93

• Ether fell 1.6% to $2,414.75

Bonds

• The yield on 10-year Treasury notes rose one basis point to 3.76%

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

• The UK 10-year yield fell two basis points to 3.92%.

Raw materials

• Brent crude oil rose 0.6% to $73.11 a barrel

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

This story was produced with assistance from Times of Update Automation.

—With assistance from Chiranjivi Chakraborty.

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