- Shares of Wall Street closed higher
- The 10-year reference yield is declining
- Brent oil prices up 1%
- US dollar relieves
- Gold in asylum rises above 1%
NEW YORK, June 2 (Reuters) – Global stock markets rose as US yields fell on Thursday as lower-than-expected private wage figures raised hopes that the US economy is likely to cool and the Federal Reserve he can be persuaded to change his aggressive stance on interest rates and inflation.
The ADP’s national employment report on Thursday showed private wages rising 128,000 jobs in May, well below the consensus estimate of 300,000 jobs and suggesting that labor demand is starting to slow . Read more
If private pay figures are reaffirmed by the Labor Department’s more comprehensive report on jobs on Friday, then the Fed is unlikely to continue its pace of interest rate hikes, said Sandy Wheeler, portfolio manager at Villere & Co in New Orleans.
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“In essence, the bad news is good news, and the good news is bad news. That means the economy may be cooling down a bit and the Fed may be able to calm down as it rises, because it’s essentially in control of everything right now,” Wheeler said. .
MSCI’s global stock index (.MIWD00000PUS), which tracks stocks in 50 countries, rose 1.42%. The pan-European STOXX 600 index rose 0.57%.
US government bond yields withdrew from recent highs ahead of a closely monitored employment report and what it could show about possible interest rate trajectories.
Two Fed officials, Fed Vice President Lael Brainard and Cleveland Fed President Loretta Mester, reiterated on Thursday that the US Federal Reserve is likely to continue to raise interest rates at a rapid pace unless it sees moderate inflation. Read more
The 10-year reference banknotes traded down 2.9149%, while the two-year banknotes also fell to 2.6438%.
On Wall Street, S&P and Dow rose from earlier session losses and closed higher, with shares in the technology, discretionary consumer, communications and financial sectors leading the recovery. Read more
The Dow Jones Industrial Average (.DJI) rose 1.33% to 33,248.28, the S&P 500 (.SPX) rose 1.84% to 4,176.82 and the Nasdaq Composite (.IXIC) added 2.69% up to 12,316.90.
Oil prices rose after crude oil inventories in the United States fell more than expected amid high fuel demand, and OPEC + agreed to increase crude oil production to offset the decline in Russian production. Read more
Brent futures rose 1.69% to $ 118.26 a barrel, while West Texas Intermediate (WTI) crude rose 1.97% to $ 117.53.
The US dollar fell everywhere, giving way to some of the positions gained in recent sessions, as stronger risk sentiment has prompted investors to reach for higher-yielding currencies. Read more
The dollar index fell 0.78% and the euro rose 0.94% to $ 1.0746.
Gold prices rose by more than 1%, supported by the fall in the dollar and data on private wages in the United States. Spot gold added 1.3% to $ 1,868.59 an ounce, while US gold futures rose 1.38% to $ 1,868.70 an ounce.
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Report by Chibuike Oguh in New York; edited by Jonathan Oatis and Will Dunham
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