News
US markets trade modestly higher on jobs data
US stocks closed in the green, as the latest employment data provided further evidence that the economy is losing momentum and keeping the door open to rate cuts.
The Dow Jones rose 0.36% on the day. The S&P 500 ended up 0.15% and the Nasdaq closed up 0.17%.
The situation in the job market was the central topic of the day for investors. Data released by the Labor Department showed 8.059 million openings in April, the lowest level in more than three years and below consensus expectations of 8.4 million. Traders are now forecasting a nearly 62% probability of two rate cuts this year, up from about 36% a week ago, according to the CME FedWatch tool.
Investors remain focused on the crucial May nonfarm payrolls report, which will be released on Friday US time.
Following the employment data, Treasury yields traded lower, with the benchmark 10-year note rate falling about 7 basis points.
In business news, Bath & Body Works was the worst-performing stock in the S&P 500, falling 13% after the company provided softer-than-expected guidance.
Global central banks are increasingly favoring the US dollar, with 18% planning to increase their dollar allocation over the next one to two years, up from 6% last year. This trend, revealed in a survey by the Official Forum of Monetary and Financial Institutions, reflects confidence in high US interest rates.
In raw materials news, central banks increased gold purchases to 33 metric tons in April, up from 3 tons in March, despite high prices. This reflects sustained demand in a context of geopolitical and economic uncertainty. Türkiye, China, India and Kazakhstan lead in gold purchases this year.
Oil extended its losses with WTI closing below $73, following unexpected plans by OPEC+ to return some supplies to the market at the end of the year.
As far as US sectors are concerned, they were mixed overnight. Real estate, consumer staples and technology were the best performers, while energy and materials lagged.
Futures
SPI futures point to a decline of 0.1%.
Coin
One Australian dollar at 7:35am was buying 66.49 US cents.
goods
Gold lost 0.92 percent. Silver fell 3.79 percent. Copper fell 2.80%. Oil fell 1.31 percent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.37 percent, Frankfurt lost 1.09 percent and Paris closed 0.75 percent lower.
Turning to Asian markets, Tokyo’s Nikkei fell 0.22 percent, Hong Kong’s Hang Seng rose 0.22 percent, while China’s Shanghai Composite closed up 0.41 percent.
Yesterday, the Australian share market closed 0.31 percent lower at 7,737.06.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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