NEW YORK, United States —Stock markets mostly climbed and global bonds stabilized on Thursday as investors looked to US jobs data to cement rate-cut bets.
The latest weekly data released Thursday showed more first-time claims for unemployment benefits in the United States than analysts had expected. Meanwhile, figures from payroll firm ADP showed slowing private sector hiring in August.
Investors are now looking to US government data due out Friday, ahead of a Federal Reserve interest rate meeting later this month. Analysts expect the United States added 63,000 jobs last month and the unemployment rate rose to 4.3 percent from 4.2 percent.
“All eyes will be on Friday’s nonfarm payrolls report with bad news likely to be interpreted as good news as it will raise the market probability that the Fed cuts rates,” noted Victoria Scholar, head of investment at Interactive Investor.
READ: Stocks bounce as global bond selloff eases
US stocks overcame early weakness and gained momentum throughout the day. The S&P 500 climbed 0.8 percent to finish at a fresh all-time high.
David Morrison, senior market analyst at financial services provider Trade Nation, said the employment data “is likely to play a central role in shaping the direction of equities, currencies and commodities over the coming fortnight”.
Mixed close in Europe, Asia
In Europe, Frankfurt rose despite Germany’s main economic institutes cutting their growth forecasts.
But Paris stocks slid, weighed down by an eight-percent drop in shares of pharmaceutical firm Sanofi, after a disappointing trial of its drug for the skin condition atopic dermatitis.
Elsewhere, the global bond market eased further after yields had earlier in the week jumped on concerns over mounting government debt.
“There are signs that the bond market rout could be over,” said Kathleen Brooks, research director at trading group XTB.
She warned that risks still loomed, particularly a confidence vote in France next week that could topple the minority government.
READ: France, EU seek to lure US scientists as Trump battles universities
A solid auction of 30-year Japanese government bonds offered further reprieve after yields had risen to record highs.
Tokyo’s stock market closed higher.
But Hong Kong and Shanghai each dropped more than one percent as a tech-driven rally ran out of steam.
Analysts said the decline followed a Bloomberg report that China’s financial regulators may implement measures to cool the pace of the rally in stocks.
Oil prices extended losses Thursday in anticipation of excess supply in the coming months, as OPEC+ nations are expected to further unwind production cuts.
Your subscription could not be saved. Please try again.
Your subscription has been successful.
In company news, shares in Japanese motor maker Nidec tumbled 22 percent after it launched a probe into “improper accounting” at its Chinese subsidiary.
