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(Bloomberg) — European stock futures fell on Friday as investors awaited key U.S. jobs data to gauge the timing and pace of the Federal Reserve’s interest rate cuts, while stocks in Asian countries fell. The results were mixed.
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The Euro Stoxx 50 fell 0.6%, while the US one was little changed. Japanese stock prices rose due to the weaker yen. Stocks in South Korea, Australia, mainland China and Hong Kong fell. Friday’s nonfarm jobs report showed a strong outlook, showing U.S. employers added 175,000 jobs last month, with the so-called whisper number calling for an increase of 185,000 jobs. There is.
Strong U.S. private jobs data released on Thursday pushed yields higher, prompting traders to back off bets on the timing of the Fed’s move to lower borrowing costs. In Asia, the benchmark 10-year bond yield remains stable at around 4%. James Wilson, senior portfolio manager at Jamieson Coote Bonds, said Friday’s jobs report could further widen the decline if it highlights concerns that the market is overestimating the Fed’s interest rate cuts. there’s a possibility that.
“Sentiment has returned to a wait-and-see attitude ahead of the upcoming U.S. employment report,” said Jun Rong Yep, a strategist at IG Asia. “It may take a significant weakening in the US labor market to justify a rate cut priced in by the market as early as March.”
Traders are also keeping an eye on euro zone inflation and producer price data to be released on Friday, which will help shape expectations for European Central Bank policy.
One large options trade, which expires after Friday’s jobs report, targets a yield of up to 4.15%. Swap traders now believe there is about a 65% chance the Fed will cut rates before its March meeting, down from about 85% a week ago.
Citigroup economist Veronica Clark expects the report to dampen bets on near-term rate cuts in January and March.
“Despite the recent easing in financial conditions, risks to monthly job growth remain skewed more to the downside than to the upside, and markets are likely to be more responsive to weaker indicators,” he said. Ta.
This was a blow to gold, with the metal poised for its first weekly decline in a month.
weaker yen
The yen fell slightly, pushing the Japanese currency closer to 145 yen to the dollar, after posting a second decline of about 1% against the dollar on Thursday. The move comes in response to speculation that it will be difficult for the Bank of Japan to lift its negative interest rate policy following the earthquake earlier this week.
According to some indicators, Chinese stocks have reached levels that have historically produced extraordinary returns.
Crude oil prices rose slightly, consolidating weekly gains as US demand shows no sign of slowing due to rising tensions in the Middle East and North Africa.
This week’s main events:
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Eurozone CPI, PPI, Friday
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US non-farm payrolls/unemployed, factory orders, ISM services index, Friday
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Richmond Fed President Tom Barkin, 2024 FOMC voter, speaks on Friday
The main movements in the market are:
stock
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Euro Stoxx50 futures fell 0.6%
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S&P 500 futures were little changed as of 6:28 a.m. London time.
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Nasdaq 100 futures fell 0.1%
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S&P/Australian Stock Exchange 200 futures little changed
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Hong Kong’s Hang Seng fell 0.8%.
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The Shanghai Composite fell 0.9%.
currency
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Bloomberg Dollar Spot Index rose 0.1%
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The euro fell 0.1% to $1.0929.
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The Japanese yen fell 0.4% to 145.14 yen to the dollar.
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The offshore yuan fell 0.2% to 7.1759 yuan to the dollar.
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The Australian dollar fell 0.1% to $0.6697.
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The British pound was almost unchanged at $1.2670.
cryptocurrency
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Bitcoin fell 1.8% to $43,668.31.
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Ether fell 1.3% to $2,246.48.
bond
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The 10-year Treasury yield rose 2 basis points to 4.02%.
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Japan’s 10-year bond yield fell 1 basis point to 0.600%.
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The Australian 10-year bond yield rose 8 basis points to 4.13%.
merchandise
This article was produced in partnership with Bloomberg Automation.
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