Stocks are mixed ahead of a critical US jobs report that could 'stop the rally in its tracks'
- European stocks and US futures were subdued on Friday as investors braced for a crucial set of US employment data that could determine whether the Federal Reserve cuts interest rates this month.
- Economists expect the non-farm payrolls report to show 160,000 jobs were added to the US economy in June, a sharp increase from the 75,000 jobs added in May.
- "Should the NFPs indicate a robust jobs market then the likelihood of an immediate rate cut could diminish and stop the rally in its tracks," says one analyst.
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European stocks were subdued and US futures indicated a slight fall for indexes on Friday as investors braced for a crucial set of US employment data that could determine whether the Federal Reserve cuts interest rates this month.
Economists polled by Reuters expect the non-farm payrolls report to show 160,000 jobs were added to the US economy in June - a sharp increase from the 75,000 jobs added in May. The disappointing May figures and other signs of weakness in the US economy prompted Fed Chair Jerome Powell last month to signal the central bank is prepared to cut interest rates to maintain growth.
However, the recent truce in the US-China trade war has lifted market sentiment, weakening the case for lower interest rates. US stock markets were closed for the July Fourth holiday on Thursday. On Wednesday stocks notched fresh all-time highs in a short trading session, led by a boom in tech shares.
"Should the NFPs indicate a robust jobs market then the likelihood of an immediate rate cut could diminish and stop the rally in its tracks," said Konstantinos Anthis, head of research at ADSS.
Here's the market roundup as of 9.o0 a.m. (4.00 a.m. ET):
- Asian stocks were mixed with China's Shanghai Composite and Japan's Nikkei up 0.2%, while Hong Kong's Hang Seng fell 0.2%.
- European equities were mixed. Germany's DAX and the Euro Stoxx 50 fluctuated between 0.1% gains and losses, and Britain's FTSE 100 was down 0.2%.
- US markets are set to open lower with futures underlying the Dow Jones Industrial Average and S&P 500 down 0.1%, and Nasdaq futures flat.
- Oil has fallen with West Texas Intermediate crude down 1.5% at $56.50, and Brent crude down 0.4% at about $63.
- Gold has slid 0.3% t0 $1,416.
- Bitcoin has dropped about 6.5% to $10,989.