Ahead of US Private Payrolls, Stocks Rise – Europe Market Wrap
Stocks in Asia and Europe led the way on Thursday, while US futures remained higher as traders wagered that a Fed rate cut will help propel a worldwide rally until the end of the year.
Europe’s Stoxx 600 increased 0.3% as the auto and industrial sectors outperformed. Asian shares rose to their highest level in over two weeks, powered by gains in Japanese heavyweights. The S&P 500 was set for an unchanged open after rising in seven of the previous eight sessions.
Global bonds slumped, with rising Japanese rates leading the way. Sentiment shifted after several senior government officials signalled they wouldn’t oppose a BoJ rate hike this month. This offset earlier gains from a strong 30-year auction. The 10-year US Treasury yield jumped 1 bps to 4.08%.
Bitcoin, meanwhile, remained above $93,000. The Dollar remained quite stable. Fed rate cuts are expected to spur a wide rebound following November’s drop, with investors shifting to defensive and other sectors as concerns about bloated tech values persist. The small-cap Russell 2000 index is now just shy of a new high, while the Nasdaq 100 is still roughly 2% behind its top.
On Thursday, technology equities showed strong performance. Aside from Apple, the other seven megacaps saw small premarket rises.
