Global Stock Plunges Before US Job Data – Europe Market Wrap

Prior to important US jobs data that could confirm predictions about when the Fed can begin to loosen monetary policy, a worldwide equities surge stalled.

While stocks, such as GameStop and AMC continued their rise, US futures remained steady, with minor premarket gains for companies like Micron Technology and Intel. A 0.4% decline was seen in Europe’s Stoxx 600 index, moving away from record highs reached this week when the ECB began its cycle of policy easing. With the ECB signalling that it would not rush further rate reductions, property and insurance sectors fell while tech stocks rose.

Global markets are poised to end a two-week losing streak, despite traders’ reluctance to place large wagers on Friday. Expectations of rate cuts have increased over the past week due to a number of US data points that were lower than expected and the Bank of Canada and ECB’s softening.

Friday’s report is forecasted to show that the US added 180,000 jobs in May, little more than in April, with the jobless rate remaining stable. There is a good chance that the Fed will lower rates in September, and swap markets are pricing a full rate cut by November.