Stocks, Bonds Struggle for Momentum into US Jobs: Markets Wrap
Stocks Slide, Bonds Mixed on Economic Data
Global stock markets faltered on Friday, with the MSCI world equity index extending losses, as investors awaited key US jobs data for clues on the path of interest rates and global growth.
The MSCI index fell 0.2%, having earlier touched its lowest level since Nov. 10. European shares edged down 0.2%, while futures indicated a flat open on Wall Street.
Market Movers:
- MSCI world equity index down 0.2%
- European shares down 0.2%
- US stock futures flat
- Gold up 0.1%
- Brent crude down 0.4%
Bonds Mixed, US Yields Inch Higher
Bond markets were mixed, with US Treasury yields inching higher ahead of the jobs data. The yield on the benchmark 10-year Treasury note rose to 3.5478%, from 3.539% late on Thursday.
German Bund yields also edged higher, while Italian bond yields were little changed.
US Jobs Data in Focus
Investors are closely watching the US non-farm payrolls report due later on Friday. The US economy is expected to have added 200,000 jobs in December, according to a Reuters poll, with the unemployment rate seen steady at 3.7%.
A strong jobs report could boost the dollar and support the case for further interest rate hikes from the Federal Reserve. Conversely, a weak report could weigh on the dollar and lead to a reassessment of Fed policy expectations.
Outlook:
The market outlook remains uncertain, with investors grappling with concerns about slowing global growth, rising interest rates, and geopolitical tensions.
The US jobs data will be a key catalyst for market sentiment in the near term. A strong report could boost risk appetite, while a weak report could trigger a sell-off.
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