5 July 2024
US stock and Treasury markets were closed on Thursday for the Independence Day holiday.
European stock markets rose further on Thursday ahead of the US employment report and Sunday’s second round of lower house elections in France. The Euro Stoxx 50 rose 0.4%. The German DAX and the French CAC 40 increased 0.4% and 0.8% respectively. In the UK, the FTSE-100 advanced 0.9%.
European government bonds fell (yields rose), shrugging off disappointing German manufacturing data. 10-year German yields edged up 3bp to 2.61%, as 10-year French yields rose 3bp to 3.28%. In the UK, 10-year gilt yields increased 3bp to 4.20%.
Asian stock markets extended gains on Thursday, led by technology shares as soft US data reinforced investor optimism of Fed rate cuts. Japan’s Nikkei 225 and Korea’s Kospi rallied 0.8% and 1.1%, respectively. Hong Kong’s Hang Seng added 0.3%, while China’s Shanghai Composite bucked the regional trend, ending 0.8% lower. Elsewhere, India’s Sensex was up 0.1%.
Brent crude oil prices for September settlement held largely steady at USD87.4 a barrel on Thursday, as data earlier showed a large decline in US weekly crude stockpiles and Saudi Arabia cut prices to Asia in August.
German factory orders fell 1.6% mom in May following a revised 0.6% mom decline in April, below market expectations.
German industrial production is expected to rise 0.1% mom in May following April’s 0.1% mom decline.
US non-farm payrolls may have increased 190k in June after a 272k gain in May. The unemployment rate is expected to remain unchanged at 4.0% in June.
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