Global Markets React to US Jobs Data and Interest Rate Expectations

Global Markets React to US Jobs Data and Interest Rate Expectations/Mint

VoM News Desk | May 10, 2024 | 06:34 PM IST | Breaking News | Follow on Google News

Global Markets React to US Jobs Data and Interest Rate Expectations

Global Markets React to US Jobs Data and Interest Rate Expectations

Key Points:

• European stock futures and Asian shares rose following supportive US jobs data, reinforcing expectations for interest rate cuts by the Federal Reserve.
• Euro Stoxx 50 contract gained 0.2%, while Asian markets, led by Hong Kong shares, also advanced.
• Optimism persists in major tech stocks and the S&P 500, with potential for further gains driven by earnings growth and possible rate cuts.
• Hang Seng climbed on news of potential tax exemptions for individual investors in Hong Kong stocks, while onshore Chinese stocks fluctuated amid reports of forthcoming US tariff decisions.
• Analysts like Doug Ramsey at Leuthold foresee further gains in the S&P 500, with potential year-end targets exceeding 5,700.
• Treasuries remained steady, with the US 10-year yield holding around 4.45%, supported by a successful bond auction.
• Cooling in the US jobs market, indicated by a rise in initial unemployment benefit applications, strengthens the case for Fed rate cuts, according to Fed Bank of San Francisco President Mary Daly.
• Market participants await Asia’s industrial output data for India and China’s first-quarter current account balance, among other releases.
• JPMorgan Chase & Co. announced plans to include India in its emerging market debt index from June, potentially attracting global investor inflows.
• Oil prices extended gains, supported by technical levels, while gold rose after a 1% jump on Thursday.

Global markets responded positively to US jobs data suggesting a cooling labor market, reinforcing expectations for Fed rate cuts. Amidst ongoing geopolitical and economic developments, investors are closely monitoring central bank policies and economic indicators for further market direction.

source: Mint

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