(Bloomberg) — Global stocks steadied after days of declines as uncertainty persisted over the health of the U.S. economy and the pace of potential interest rate cuts by the Federal Reserve.
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The pan-European STOXX 600 index was little changed, with chemical and mining stocks the biggest losers after iron ore fell to its lowest since 2022. U.S. futures were flat, while Asian stocks erased most gains after declines in Hong Kong and Japan.
Traders are looking to weekly jobless claims data due later today and nonfarm payrolls reports on Friday to gauge whether the U.S. economy is heading for a soft landing as the Federal Reserve prepares to start easing monetary policy.
Swap traders have boosted their bets on the pace of rate cuts after Wednesday’s reading on U.S. job openings came in below estimates and the Federal Reserve’s Beige Book survey showed economic activity flat or declining. Rate quotes now expect at least 100 basis points of easing this year, including a massive 50 basis point cut.
“We think the soft landing scenario in the US is still there, but we realise the next two to three months could be a tough period,” Eddie Loh, chief investment officer at Maybank Wealth Management Group, told Bloomberg TV. “If the Fed cuts rates by 50 basis points, the market could view that as negative because it means the Fed sees 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 prices fell to near $90 a tonne after China’s main steelmaking group advised mills to be careful not to increase output too quickly to avoid dampening the post-summer recovery.
Main events this week:
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Eurozone Retail Sales, Thursday
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US Initial Jobless Claims, ADP Employment, ISM Services Index, Thursday
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Eurozone GDP, Friday
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US Non-Farm Payrolls, Friday
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Federal Reserve Board Member John Williams Speaks Friday
Some key movements in the markets:
Stocks
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The Stoxx Europe 600 Index was little changed as of 8:35 a.m. London time.
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S&P 500 futures rose 0.1%.
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Nasdaq 100 futures rose 0.1%.
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Dow Jones Industrial Average futures rose 0.1%.
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The MSCI Asia Pacific Index was little changed.
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The MSCI Emerging Markets Index rose 0.2%.
Currencies
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The Bloomberg Dollar Index was little changed.
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The euro was little changed at $1.1081.
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The Japanese yen was little changed at 143.64 yen to the dollar.
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The offshore yuan rose 0.1% to 7.1028 against the dollar.
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The pound was little changed at $1.3141.
Cryptocurrencies
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Bitcoin fell 1.5% to $57,200.93
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Ether fell 1.6% to $2,414.75.
Bonds
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The yield on the 10-year US Treasury note rose one basis point to 3.76%.
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The yield on the 10-year German bond fell one basis point to 2.21%.
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The yield on the 10-year British bond fell by two basis points to 3.92%.
Goods
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Brent crude rose 0.6 percent to $73.11 a barrel.
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Spot gold rose 0.4 percent to $2,505.70 an ounce.
This story was produced with the help of Bloomberg Automation.
– With the assistance of Chiranjeevi Chakraborty.
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