(Bloomberg) — European shares opened just off record highs, as traders waited to see if US jobs data due later Friday would cement bets on Federal Reserve policy easing in the coming months.
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Europe’s Stoxx 600 index inched 0.1% lower, having hit record peaks this week as the European Central Bank kicked off its policy easing cycle. While technology stocks gained, real estate and insurance stocks slipped, given the ECB’s signal that it would not rush to cut rates rapidly. Futures for US stocks held steady, while Bloomberg’s dollar gauge eased.
While traders were wary of placing big bets either way on Friday, global stocks are on track to snap a two-week losing stretch. Rate-cut expectations have escalated in the past week, encouraged by the slew of weaker-than-forecast US data, as well as rate cuts from the Bank of Canada and ECB. A Bloomberg gauge of global government bonds posted its longest rising streak since November.
Homin Lee, senior macro strategist at Lombard Odier said a recent run of softer US data, including jobless claims and labor costs, pointed to a “quiet rebalancing” in the economy that could indicate a slowdown in service sector inflation.
“That combination seems to have given bond investors more conviction on their trades. We will see if tonight’s employment report reinforces that,” Lee said.
Friday’s report is expected to show the US added 180,000 jobs in May, slightly more than in A[ril, with the unemployment rate seen holding steady. Swap markets are pricing a full Fed rate cut by November, with a strong likelihood of one in September.
Earlier, China’s exports climbed more than expected in May, boosting hopes that the world’s second-biggest economy can maintain its momentum by relying on foreign markets even in the face of new tariff threats.
On commodities, oil prices headed for their third straight gain, as expectations waned that OPEC and its allies will allow the market to become oversupplied.
Key events this week:
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 was little changed as of 8:19 a.m. London time
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S&P 500 futures were little changed
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Nasdaq 100 futures rose 0.1%
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Futures on the Dow Jones Industrial Average 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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The British pound 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
Bonds
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The yield on 10-year Treasuries advanced one basis point to 4.30%
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Germany’s 10-year yield advanced two basis points to 2.57%
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Britain’s 10-year yield was little changed at 4.18%
Commodities
This story was produced with the assistance of Bloomberg Automation.
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