European equities shook after the turmoil in global financial markets as traders waited for monthly US employment data that might reinforce the first US interest rate rise case in the pandemic era.
The regional STOXX 600 stock index fell 0.5% in early trading, but fell 0.1% in London by midnight.
This continued on a bumpy trading day in the session before the European equity gauge fell 1.3% and the Wall Street stock market fell. Whiplash. The FTSE 100 in London was almost flat on Friday morning.
In Asia, Hong Kong’s Hang Seng Index rose 1.8% and Wall Street futures tracking the S & P 500 Index rose 0.2%.
Economists surveyed by Reuters said a non-farm payrolls report released by the Labor Department late Friday showed that the world’s largest economy employers added 400,000 new workers last month. Expect.
Another report from Wednesday’s payroll company ADP showed private payroll gain Most in the 7 months of December.
Minutes of the latest Federal Reserve meeting reveal that authorities are considering a schedule for raising interest rates this year earlier than investors expected to combat rising inflation in the U.S. After that, investors are likely to scrutinize Friday’s employment report.
Some federal officials suggestion The US central bank was able to raise interest rates even before the maximum employment target was met, as it was revealed this week that it put a lot of pressure on tech stocks. With a large number of fast-growing groups, this sector has been raised by low interest rates in recent years, pushing up the present value of the company’s expected future profits.
Phillip Toews, Chief Executive Officer of Toews Corporation, a US asset management company, said:
“The combination of rising interest rates and rising asset prices usually doesn’t end well.”
last year’s 2-digit gain Global equities were backed by federal governments and other central banks pushing borrowing costs to record lows as they bought large amounts of government bonds to protect financial markets from the coronavirus shock.
“One of the biggest market themes in 2022 is likely to be the performance of various assets as the central bank begins to regain monetary policy support,” said Deutsche Bank strategist Jim Reed. Stated. ”
The US bond market was stable ahead of employment data. Benchmark 10-year Treasury yields were flat at 1.727%, up from about 1.53% at the beginning of January.
Germany’s 10-year bond yield rose 0.01 percentage points to minus 0.06 percent, while Italy’s equivalent bond yield rose 0.02 percentage points to 1.293 percent.
The forex market is stable and the dollar index, which measures the US dollar against the other six companies, fell 0.2%.
Brent crude, the oil benchmark, rose about 1% to $ 82.78 a barrel.
European stocks subdued ahead of key US jobs report Source link European stocks subdued ahead of key US jobs report
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