(Bloomberg) — European stocks opened just off record highs as traders waited to see if U.S. jobs data, due later Friday, would cement bets on easing policy Federal Reserve in the coming months.
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Europe’s Stoxx 600 index edged down 0.1%, after hitting record highs this week as the European Central Bank launched its policy easing cycle. While technology stocks rose, property and insurance stocks fell, given the ECB’s signal that it would not rush to cut rates quickly. U.S. stock futures remained steady, while Bloomberg’s dollar indicator softened.
While traders were hesitant to place big bets one way or the other on Friday, global stocks are on track to end a two-week losing streak. Expectations for rate cuts have intensified over the past week, encouraged by the weaker-than-expected series of U.S. data, as well as rate cuts from the Bank of Canada and the ECB. A Bloomberg gauge of global government bonds recorded its longest streak of gains since November.
Homin Lee, senior macro strategist at Lombard Odier, said a recent round of weaker U.S. data, including jobless claims and labor costs, pointed to a “quiet rebalancing” of the economy that could indicate a slowdown in services sector inflation.
“This combination appears to have given bond investors more conviction in their trades. We’ll see if tonight’s jobs report reinforces that,” Lee said.
Friday’s report is expected to show that the United States added 180,000 jobs in May, slightly more than in April, and that the unemployment rate remains stable. Currency markets are pricing in a full Fed rate cut by November, with a high probability in September. .
Earlier, Chinese exports rose more than expected in May, bolstering hopes that the world’s second-largest economy can maintain momentum by relying on overseas markets even in the face of new tariff threats.
In commodities, oil prices are heading for their third straight rise as expectations that OPEC and its allies will let the market go into surplus have eased.
Key events this week:
Some of the main market movements:
Actions
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The Stoxx Europe 600 was little changed at 8:19 a.m. London time
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S&P 500 futures little changed
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Nasdaq 100 futures rose 0.1%
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Dow Jones Industrial Average futures rose 0.2%
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The MSCI Asia-Pacific index rose 0.4%
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The MSCI Emerging Markets Index rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0896
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The Japanese yen rose 0.2% to 155.30 per dollar
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The offshore yuan rose 0.1% to 7.2505 per dollar.
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Sterling was little changed at $1.2801.
Cryptocurrencies
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Bitcoin rose 0.8% to $71,268.51
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Ether rose 0.6% to $3,822.13
Obligations
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The yield on 10-year Treasury notes rose one basis point to 4.30%
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The German 10-year yield rose two basis points to 2.57%
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The UK 10-year yield was little changed at 4.18%
Raw materials
This story was produced with the help of Bloomberg Automation.
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