(Bloomberg) — European stock futures and Asian stocks rose on dovish signals from central banks as investors focused on U.S. jobs data due later Friday. The yen expanded its rise.
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Euro Stoxx 50 contracts edged higher, while US futures were mixed after Thursday's gains. The S&P 500 rose 1%, setting a new record, and the Nasdaq 100 rose 1.6%.
Asian stock indexes rose for a third day, reflecting broad-based gains across the region, including benchmarks from Australia to Hong Kong.
The yen rose against the dollar for a fourth straight day as expectations grew that the Bank of Japan would raise interest rates for the first time since 2007. The dollar index edged lower, but U.S. Treasuries were firm after yields fell on Thursday.
Risk appetite increased after Federal Reserve Chairman Jerome Powell told a Senate committee Thursday that the central bank is “not far off” from the confidence needed to ease policy. He said interest rate cuts “can and will start” this year, adding that policymakers were well aware of the risks of cutting rates too late. Meanwhile, European Central Bank President Christine Lagarde suggested that officials could ease policy in June.
“From a global equity perspective, there are real tailwinds for growth stocks,” Jessica Jones, head of Asia at PGIM Investments, said in an interview on Bloomberg TV. She said: “As investor confidence improves later this year, investors will continue to want to invest in sectors exposed to structural growth stories such as AI and global consumer staples.”
All eyes are on Friday's key US employment report. The consensus forecast is that 200,000 new jobs will be added to the U.S. economy. However, variations in expectations can make trading volatile when the final version is announced. For example, RBC Capital Markets LLC projects 260,000 jobs, while Citigroup Inc. projects 145,000 jobs.
“Friday's jobs report could be a surprise,” said Andrew Brenner, head of international fixed income at Natalliance Securities LLC. He said the wide range of expectations meant the 10-year Treasury yield could fluctuate widely. “If the numbers are really good, we could be looking at three handles in 10 years, but if they're bad, it could be as high as 4.3%,” he said.
Gina Bolvin, president of Bolvin Wealth Management Group, said she expects wages to be the most important item in Friday's report. If it rises too quickly, companies will pass this cost on to end users, leading to inflation, she noted.
Elsewhere, the Hong Kong government has proposed life sentences for offenses related to treason and riots in a draft security plan, which authorities are aiming to pass quickly.
Oil prices rose on Friday after falling in the previous session as traders considered the interest rate outlook and turmoil in the Middle East. Gold prices have fallen after a record rally.
This week's main events:
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Eurozone GDP, Friday
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US nonfarm payrolls, unemployment rate, Friday
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New York Fed President John Williams speaks on Friday
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ECB Executive Board Member Robert Holzmann speaks on Friday
The main movements in the market are:
stock
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S&P 500 futures were little changed as of 6:51 a.m. London time.
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Euro Stoxx50 futures rose 0.2%
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Nasdaq 100 futures fell 0.2%
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Dow Jones Industrial Average futures little changed
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MSCI Asia Pacific index rises 1%
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MSCI Emerging Markets Index rises 1%
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S&P/ASX 200 futures rose 1.1%
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Hong Kong's Hang Seng rose 1.3%
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The Shanghai Composite rose 0.6%.
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0947.
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The Japanese yen rose 0.1% to 147.87 yen to the dollar.
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The offshore yuan was little changed at 7.1986 yuan to the dollar.
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The British pound was unchanged at $1.2809.
cryptocurrency
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Bitcoin rose 0.2% to $67,489.09
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Ether rose 1.2% to $3,921.84
bond
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The 10-year government bond yield was almost unchanged at 4.07%.
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Germany's 10-year bond yield fell 2 basis points to 2.31%.
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UK 10-year bond yield remains unchanged at 4.00%
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The Australian 10-year bond yield fell three basis points to 3.97%.
merchandise
This article was produced in partnership with Bloomberg Automation.
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