(Bloomberg) — European stock futures and Asian shares rose amid gains in tech stocks as investors awaited key U.S. jobs data that could set the tone for stock bulls next week. The yen rose to a three-week high.
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Euro Stoxx50 futures rose 0.2% as U.S. stock contracts rose on Apple’s earnings in after-hours trading. In Asia, Hong Kong stocks led the rise, with regional stocks hitting their highest since February. Stock prices in South Korea and Australia also rose, while trading was suspended in mainland China and Japan.
U.S. non-farm jobs data to be released later on Friday after Federal Reserve Director Jerome Powell effectively ended debate over possible interest rate hikes while leaving room for rate cuts for the rest of the year. could be the next big potential trigger for the market. The expected increase of 240,000 people would be the lowest since November.
Simon Ballard, chief economist at First Abu Dhabi, said: “The relative strength of the US economy is keeping dovish moves in check for the time being, so any surprise in the jobs report could lead to an unusual reaction in interest rate markets. We are aware that this can lead to Bank.
Hong Kong stocks rose for nine straight sessions as tech stocks rebounded. The Hang Seng Tech Index rose 4.1%, further outpacing Thursday’s 4.5% rise, as Alibaba Group Holding, Tencent Holdings and Jingdong Market hit new 2024 highs.
“Even after the surge, Chinese tech stocks’ valuations are still well below their historical averages,” said Beisaan Lin, managing director at Union Bancare Privy, when compared to their global peers. “Following the strong performance of the past two weeks, there may be more inflows due to fear of missing out.”
The yen hit a three-week high against the dollar in Friday trading, marking its best week since December 2022. The yen is likely receiving official support, with estimates suggesting Japan spent more than $20 billion in its latest intervention.
The yen’s volatility rose to its highest level this week after allegations of interference, threatening to derail carry trades that borrow Japanese currency and invest in emerging market currencies.
The dollar index fell for a third day in a row, reflecting lower U.S. yields as U.S. Treasuries rebounded across the curve. The yield on the U.S. 10-year Treasury note fell 5 basis points to 4.58%, while the yield on the policy-sensitive 2-year note fell 9 basis points. Government bond trading in Asia is closed due to a Japanese holiday. Yields in Australia and New Zealand fell on Friday.
The Federal Reserve decided on Wednesday to keep its benchmark interest rate target range unchanged at 5.25% to 5.5%, citing a slew of data suggesting lingering price pressures. But Chairman Jerome Powell said it was unlikely the Fed’s next action would be to raise rates.
“The Fed appears to have all but eliminated the possibility of raising rates, but they have also made clear that they intend to keep rates high for an extended period of time,” said Chris Larkin of Morgan Stanley’s E-Trade. “Markets will be hungry for any data that suggests the economy is no hotter than it was in the first quarter,” he said.
According to a survey conducted by 22V Research, 30% of investors surveyed believe Friday’s jobs report will be a “risk-on” response, while 27% expected a “risk-off” reaction and 43% expected a “risk-off” reaction. answered, “Very mixed/can be ignored.” The aggregated results revealed that among labor indicators, investors pay the most attention to average hourly wages.
The options market is predicting big swings in stock prices after Friday’s U.S. jobs report, with traders expecting more clarity on how much the Fed will cut interest rates this year.
Based on the cost of at-the-money puts and calls expiring on Friday, the S&P 500 index moved 1.1 in either direction after the announcement, said Stuart Kaiser, head of U.S. equity trading strategy at Citigroup. It is expected to move by 2%. The figure, based on the S&P straddle price as of Wednesday’s close, is the largest implied change before the jobs report since March 2023, he said.
european revenue
Société Générale SA’s first-quarter profit beat expectations, boosted by strong performance from equity traders, and outperformed bond traders for the fourth consecutive quarter.
Crédit Agricole also posted a net profit that exceeded analysts’ expectations, with support from its corporate and investment banking divisions. The French financial institution has achieved its goal of reaching 6 billion euros ($6.4 billion) in annual adjusted profit in 2024, a year ahead of schedule.
On the other hand, Danske Bank left its full-year net profit forecast unchanged, as pre-tax profit exceeded analyst forecasts due to the contribution of large corporate and institutional businesses.
This week’s main events:
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Eurozone unemployment rate, Friday
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US unemployment rate, non-farm payrolls, ISM services, Friday
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Chicago Fed President Austan Goolsby speaks on Friday
The main movements in the market are:
stock
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S&P 500 futures were up 0.3% as of 2:48 p.m. Tokyo time.
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Nasdaq 100 futures rose 0.6%
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Australia’s S&P/ASX 200 rose 0.6%
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Hong Kong’s Hang Seng rose 1.4%
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Euro Stoxx50 futures rose 0.3%
currency
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The Bloomberg Dollar Spot Index fell 0.2%.
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The euro rose 0.1% to $1.0736.
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The Japanese yen rose 0.4% to 152.96 yen to the dollar.
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The offshore yuan rose 0.2% to 7.1952 yuan to the dollar.
cryptocurrency
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Bitcoin rises 1.4% to $59,550.69
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Ether rose 0.5% to $3,000.61
bond
merchandise
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West Texas Intermediate crude rose 0.3% to $79.19 per barrel.
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Spot gold rose 0.2% to $2,307.64 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Charlotte Yang.
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