6 September 2024
US equities ended mostly lower on Thursday, as investors digested mixed economic data while looking ahead to today’s labour market reports. The S&P 500 fell 0.3%.
US Treasuries ended mostly higher, as investors weighed a big miss in ADP employment growth against better-than-expected ISM services readings and lower weekly jobless claims. 10-year yields fell 3bp to 3.73%.
European stock markets were mostly down on Thursday ahead of key US job market data as worries over US growth linger. The Euro Stoxx 50 fell 0.7%. The German DAX was little changed (-0.1%), and the French CAC was down 0.9%. In the UK, the FTSE-100 fell 0.3%.
European government bonds rose (yields fell) as investors await US jobs data. 10-year German yields edged 1bp lower to 2.21% as 10-year French yields fell 2bp to 2.91%. In the UK, 10-year gilt yields fell 2bp to 3.91%.
Asian stock markets lacked clear direction on Thursday as investors await more US labour market data releases. Japan’s Nikkei 225 dropped 1.1% amid a stronger yen, despite upbeat July wage growth readings. China’s Shanghai Composite added 0.1% after declines in the previous three sessions, while Hong Kong’s Hang Seng edged down 0.1%. India’s Sensex also ended 0.2% lower. Elsewhere, Thailand’s SET rallied 2.8% as the new Prime Minister’s cabinet line-up indicated policy continuity.
Crude oil prices ended little changed on Thursday, as ongoing worries about the demand outlook and a potential rise in supplies from Libya offset a large decline in US weekly crude stockpiles and a two-month delay to output increases by OPEC+. WTI crude for October delivery settled almost unchanged at USD69.2 a barrel.
The US ISM Services Index nudged higher to 51.5 in August from 51.4 in July, but the employment component softened and the data overall was consistent with an economy experiencing slower growth.
In the US, the unemployment rate is expected to nudge lower to 4.2% in August, from 4.3% in July.
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