Stocks, Bonds Slip as Traders Seek Fresh Impetus – Europe Market Wrap

US equities futures hinted to a dip on Wall Street as May’s early gains faded. Treasury yields increased.

Contracts for the S&P 500 and Nasdaq 100 both fell 0.2%. Ten-year Treasuries fell for the second day in a row after a $42 billion issuance of 10-year notes met with muted demand.

The current stock rally is waning as the earnings season wraps down, leaving investors to wait for new data to see how quickly policymakers will be able to begin reducing interest rates. The pound sank against all of its Group of 10 counterparts as the Bank of England drew closer to lowering interest rates from a 16-year high, with two of the nine committee members voting for lower borrowing costs.

US initial jobless claims data, released later Thursday, will be another focus for investors looking for additional signs that the labour market is finally cooling, allowing the Federal Reserve to begin cutting interest rates by the end of this year. Last week’s softer-than-expected US payrolls raised prospects for a Fed rate decrease.