Bonds and Stocks Continue to Rise in Fed-Cut Bets – Europe Market Wrap

Stocks and bonds climbed as traders increased bets on a faster pace of US interest rate decreases ahead of Friday’s key jobs data.

S&P 500 futures rose 0.2%, indicating a back-to-back increase. Treasuries extended its gains, with the 10-year note yield falling two basis points to 4.19%. The Dollar edged higher while oil sank.

Advances were stronger in Europe, where the Stoxx 600 gained 0.4% and bonds rose across the board. In Asia, a selloff in Chinese equities intensified on a story that officials may intervene to slow a surge that has gained $1.2 trillion since August.

According to the median of a survey, economists predict that 75,000 jobs were added in August, while the unemployment rate is expected to remain at 4.3%. Four consecutive months of payroll growth below 100,000 would be the poorest stretch since the pandemic began in 2020.

Prior to Friday’s figures, an ADP Research report on Thursday is expected to indicate slower private payroll growth in August. Weekly initial jobless claims show no change from the previous week.