Latest news with #USJobsReport
Bloomberg
04-07-2025
- Business
- Bloomberg
European Stocks Gain as Robust US Jobs Data Ease Growth Worries
European stocks advanced as a stronger-than-expected US jobs report eased worries about economic stress, while Germany's Siemens AG gained on trade optimism. The Stoxx Europe 600 Index rose 0.5% by the close. Personal care and retail stocks outperformed, while health care and mining were the biggest laggards.
Reuters
04-07-2025
- Business
- Reuters
Trimmed Fed rate cut wagers pull rupee, forward premiums off one-month peak
MUMBAI, July 4 (Reuters) - The Indian rupee and dollar-rupee forward premiums retreated from one-month peaks on Friday after a stronger than expected U.S. jobs report dented wagers on Federal Reserve rate cuts, with traders also keeping an eye on a looming U.S. tariff deadline. The rupee dipped to near 85.50 in early trading, coming off a one-month peak hit on Thursday, before paring losses to quote little changed at 85.33. A dip in the dollar index, following a rise in the previous session, aided the rupee while Asian currencies were mostly rangebound. Meanwhile, the 1-year dollar-rupee implied yield fell 5 basis points to 2.02%, with traders pointing out that near forward premiums could also witness downward pressure after the central bank did not raise the quantum of liquidity it aims to withdraw from the banking system. This surprised many market participants, who had expected a rise in the quantum due to a heightened surplus. The U.S. jobs data prompted traders to nearly wipe out wagers on a Fed rate cut in July, while the odds of a September cut dipped to below 75% from near 94% before the data. "The market is now waiting for news on tariffs," a trader at a Mumbai-based bank said, referring to the looming July 9 deadline for countries to strike trade deals with the U.S. About a 100 countries are likely to see a reciprocal tariff rate of 10%, U.S. Treasury Secretary Scott Bessent told Bloomberg Television, predicting a "flurry" of trade deals announced before the deadline. Taking cues from deals struck with other countries, there is scope for a reduction in the umbrella tariff rate on India to the baseline 10%, DBS said in a note. U.S. President Donald Trump had threatened a 26% duty on Indian goods as part of his April 2 "Liberation Day" reciprocal tariffs, which were temporarily lowered to 10% to buy time for negotiations.
Yahoo
03-07-2025
- Business
- Yahoo
Asian shares subdued ahead of US payrolls test; Trump's tax bill in focus
By Stella Qiu SYDNEY (Reuters) -Asian shares were subdued on Thursday as investors braced for a key U.S. jobs report that may justify imminent rate cuts by the Federal Reserve and waited on the passage of a massive U.S. tax and spending bill in Congress. Wall Street climbed overnight to close at new record highs after President Donald Trump announced that the U.S. has struck a trade deal with Vietnam, including a 20% tariff on exports to the U.S. That is lower than the 46% tariff that had been threatened, but still much higher than previous rates. Vietnamese shares gained 0.5% to the highest since April 2022. The local dong currency, however, dipped to a record low of 26,229 per dollar. "More trade deals may soon be announced but the 20% tariff agreed with Vietnam does not augur well, and that or even higher could become the norm for some including Europe and Japan," said Shane Oliver, chief economist at AMP. Indeed, Japan has invoked national interests as talks with the U.S. struggled, while South Korea President Lee Jae Myung said on Thursday U.S. tariff negotiations were looking difficult and he cannot say if talks can conclude by next Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1% on Thursday, while Japan's Nikkei slipped 0.1%. China's blue chips rose 0.5%, while Hong Kong's Hang Seng index fell 1%. Data also showed China's services activity expanded at the slowest pace in nine months in June. Both Nasdaq futures and S&P 500 futures were 0.1% higher in Asia, while EUROSTOXX 50 futures were up 0.2%. [.N] Investors were waiting for Trump's massive tax and spending bill to pass the Congress. However, Republicans in the House of Representatives are struggling to unite to support the bill. The bill is expected to add $3.3 trillion to the national debt, slash taxes and reduce social safety net programs. JOBS RISK The main risk event for markets will be the U.S. payrolls figures due later in the day. Analysts are forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3% but the stakes are high after a private sector payrolls report surprised with the first fall in over two years. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to hold off on cutting rates until they can gauge the real impact of tariffs on inflation. "These labour market indicators warn of the risk that the unemployment rate could spike to 4.4%, the highest since October 2021," said Tony Sycamore, analyst at IG. "This would quickly increase the probability of a July Fed rate cut to around 70%." Futures imply just a 25% probability for a rate cut this month from the Fed, which has not eased policy at all this year, drawing the ire of Trump who reiterated his call on Wednesday for Chair Jerome Powell to resign. Trump, who said rates should be cut to 1% from the current Fed benchmark rate of 4.25% to 4.50%, has repeatedly railed against Powell for not lowering borrowing costs since his return to the White House in January. A UBS survey on Thursday showed two in three reserve managers fear Fed independence is at risk and nearly half think the rule of law in the U.S. may deteriorate enough to influence their asset allocation significantly. The Treasuries market was tense before the data as a weak jobs report would send yields sharply lower. Ten-year Treasury bond yield slipped 3 basis points to 4.265% on Thursday, while two-year yields eased 2 bps to 3.772%. The dollar is hovering just above a three-year low against its major peers at 96.872, up 0.1% for the day. Sterling slipped 0.1% to $1.3626, on top of a steep 0.8% fall overnight, as fears about the future of its finance minister Rachel Reeves eased. Investor anxiety over UK finances after the British government's reversal on welfare reforms caused gilt yields to jump overnight, up nearly 23 basis points at one point, the most since October 2022. In commodities markets, oil prices were lower after jumping 3% overnight as Iran suspended cooperation with the U.N. nuclear watchdog. U.S. crude futures slipped 0.7% to $66.93 a barrel while Brent was at $68.56 per barrel, 0.8% lower on the day. Gold prices eased 0.1% to $3,352 an ounce. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Asian shares tick up ahead of US payrolls test; Trump's tax bill in focus
By Stella Qiu SYDNEY (Reuters) -Asian shares edged higher on Thursday as investors braced for a key U.S. jobs report that may justify imminent rate cuts by the Federal Reserve and waited on the passage of a massive U.S. tax and spending bill in Congress. Wall Street climbed overnight to close at new record highs after President Donald Trump announced that the U.S. has struck a trade deal with Vietnam, including a 20% tariff on exports to the U.S. That fuelled hopes that more deals will be forthcoming, with negotiations underway for a trade agreement with India. The MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2% to hover just below a near four-year top. Japan's Nikkei was flat. China's blue chips edged up 0.2%, while Hong Kong's Hang Seng index fell 0.6% after data showed China's services activity expanded at the slowest pace in nine months in June. Both Nasdaq futures and S&P 500 futures were little changed in Asia [.N] Investors were waiting for Trump's massive tax and spending bill to pass the House of Representatives for possible final approval. The bill is expected to add $3.3 trillion to the national debt, slash taxes and reduce social safety net programs. The main risk event for markets will be the U.S. payrolls figures due later in the day. Analysts are forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3% but the stakes are high after a private sector payrolls report surprised with the first fall in over two years. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to hold off on cutting rates until they can gauge the real impact of tariffs on inflation. "These labour market indicators warn of the risk that the unemployment rate could spike to 4.4%, the highest since October 2021," said Tony Sycamore, analyst at IG. "This would quickly increase the probability of a July Fed rate cut to around 70%." Futures imply just a 25% probability for a rate cut this month from the Fed, which has not eased policy at all this year, drawing the ire of Trump who reiterated his call on Wednesday for Chair Jerome Powell to resign. The Treasuries market was tense before the data as a weak jobs report would send yields sharply lower. Ten-year Treasury bond yield slipped 2 basis points to 4.265% on Thursday, while two-year yields eased 2 bps to 3.77%. The dollar is again under pressure, having caught some relief overnight. Concerns about the Fed's independence in the wake of Trump's criticism have driven the dollar to its lowest against its peers in over three years. Trump, who said rates should be cut to 1% from the current Fed benchmark rate of 4.25% to 4.50%, has repeatedly railed against Powell for not lowering borrowing costs since his return to the White House in January. The euro inched up 0.1% to $1.1807, just a whisker away from a nearly four-year top of $1.1829 hit on Tuesday, while sterling added 0.1%, recovering a steep 0.8% fall overnight, as fears about the future of its finance minister Rachel Reeves eased. Investor anxiety over UK finances after the British government's reversal on welfare reforms caused gilt yields to jump overnight, up nearly 23 basis points at one point, the most since October 2022. In commodities markets, oil prices were slightly lower after jumping 3% overnight as Iran suspended cooperation with the U.N. nuclear watchdog. U.S. crude futures slipped 0.4% to $67.20 a barrel while Brent was at $68.84 per barrel, also 0.4% lower on the day. Gold prices eased 0.4% to $3,342 an ounce. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
03-07-2025
- Business
- Reuters
Asian shares tick up ahead of US payrolls test; Trump's tax bill in focus
SYDNEY, July 3 (Reuters) - Asian shares edged higher on Thursday as investors braced for a key U.S. jobs report that may justify imminent rate cuts by the Federal Reserve and waited on the passage of a massive U.S. tax and spending bill in Congress. Wall Street climbed overnight to close at new record highs after President Donald Trump announced that the U.S. has struck a trade deal with Vietnam, including a 20% tariff on exports to the U.S. That fuelled hopes that more deals will be forthcoming, with negotiations underway for a trade agreement with India. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab advanced 0.2% to hover just below a near four-year top. Japan's Nikkei (.N225), opens new tab was flat. China's blue chips (.CSI300), opens new tab edged up 0.2%, while Hong Kong's Hang Seng index (.HSI), opens new tab fell 0.6% after data showed China's services activity expanded at the slowest pace in nine months in June. Both Nasdaq futures and S&P 500 futures were little changed in Asia Investors were waiting for Trump's massive tax and spending bill to pass the House of Representatives for possible final approval. The bill is expected to add $3.3 trillion to the national debt, slash taxes and reduce social safety net programs. The main risk event for markets will be the U.S. payrolls figures due later in the day. Analysts are forecasting a rise of 110,000 in June with the jobless rate ticking up to 4.3% but the stakes are high after a private sector payrolls report surprised with the first fall in over two years. The resilience of the labour market is a major reason the majority of Federal Reserve members say they can afford to hold off on cutting rates until they can gauge the real impact of tariffs on inflation. "These labour market indicators warn of the risk that the unemployment rate could spike to 4.4%, the highest since October 2021," said Tony Sycamore, analyst at IG. "This would quickly increase the probability of a July Fed rate cut to around 70%." Futures imply just a 25% probability for a rate cut this month from the Fed, which has not eased policy at all this year, drawing the ire of Trump who reiterated his call on Wednesday for Chair Jerome Powell to resign. The Treasuries market was tense before the data as a weak jobs report would send yields sharply lower. Ten-year Treasury bond yield slipped 2 basis points to 4.265% on Thursday, while two-year yields eased 2 bps to 3.77%. The dollar is again under pressure, having caught some relief overnight. Concerns about the Fed's independence in the wake of Trump's criticism have driven the dollar to its lowest against its peers in over three years. Trump, who said rates should be cut to 1% from the current Fed benchmark rate of 4.25% to 4.50%, has repeatedly railed against Powell for not lowering borrowing costs since his return to the White House in January. The euro inched up 0.1% to $1.1807, just a whisker away from a nearly four-year top of $1.1829 hit on Tuesday, while sterling added 0.1%, recovering a steep 0.8% fall overnight, as fears about the future of its finance minister Rachel Reeves eased. Investor anxiety over UK finances after the British government's reversal on welfare reforms caused gilt yields to jump overnight, up nearly 23 basis points at one point, the most since October 2022. In commodities markets, oil prices were slightly lower after jumping 3% overnight as Iran suspended cooperation with the U.N. nuclear watchdog. U.S. crude futures slipped 0.4% to $67.20 a barrel while Brent was at $68.84 per barrel, also 0.4% lower on the day. Gold prices eased 0.4% to $3,342 an ounce.
