Global equities are reaching new peaks as traders shift their focus to Friday’s pivotal US jobs report. China’s central bank has announced its intention to curb the ongoing market rally by selling government bonds, with “hundreds of billions” of yuan in securities ready to be deployed through agreements with lenders.
A benchmark for global stocks surged to a record high, spurred by a series of soft US economic indicators that have rekindled hopes for Federal Reserve interest rate cuts as early as September. Market participants are keenly awaiting the monthly payrolls report later on Friday, which could be crucial in determining the Fed’s next move. Recent data, including weaker ISM Manufacturing PMI and ISM Service Sector PMI reports, have underscored a cooling economic backdrop, making the jobs report increasingly significant for the Fed’s rate strategy. Treasury yields remained steady as trading resumed in Asia following the US July 4 holiday.
In the commodities market, oil hovered near a two-month high amid concerns over Hurricane Beryl signaling a potentially severe storm season, coupled with declining US crude stockpiles suggesting improved demand. Meanwhile, gold is on track for a consecutive weekly gain.