The latest data showing a weakening US labor market increased expectations of an imminent interest rate cut in September. Labor Department data showed US job growth slowed marginally in June, with US Nonfarm Payrolls revealing public sector job additions of 206k in June, albeit above expectations of 191k but down from 218k in May.
Wall Street ditutup menguat pada hari Jumat, di mana NASDAQ dan S&P500 mencapai rekor tertinggi Wall Street closed higher on Friday, with both the NASDAQ and S&P500 hitting record highs, driven by Technology stocks, as the latest data showing a weakening US labor market increased expectations of an imminent interest rate cut in September.
Optimism of a US interest rate cut this year could come to fruition after the latest US economic data showed an economic slowdown; while Europe is abuzz with the political process as the UK election situation predicts a historic victory for the Labour Party.
The lack of sentiment from the US market as they are on the 4th of July Independence Day holiday, made market participants set their eyes on European stocks which appreciated on Thursday trading (04/07/24) on the back of optimism that US interest rate cuts this year will be able to materialize after the latest US economic data showed an economic slowdown; while Europe is busy dealing with political processes such as the UK election situation which predicts a historic victory for the Labour Party.
US Treasury yields fell for a second day and the Fed’s June Minutes were released after the market closed, echoing Fed Chairman Jerome Powell’s statement that Inflationary pressures are easing.
The S&P 500 posted a new closing record for the umpteenth time in Wednesday’s shortened trading session (03/07/24), amid accelerated economic data releases ahead of the July 4th Independence Day holiday.
US10YT stumbled upon the upper channel Resistance area around 4.516% yield and hence testing the MA50 Support / 4.424% yield. POTENTIAL: further consolidation will bring the yield towards the next Support which is the MA10 & MA20 range around 4.330% yield.
Global stock indexes edged higher while US Treasury yields fell in Tuesday trading as markets digested data showing the US labor market remains tight, and the prospect of an interest rate cut after hearing comments from Federal Reserve Chairman Jerome Powell.
US10YT has almost reached the TARGET / upper channel resistance of its downtrend, at a yield of 4.52% and will wait for the next catalyst such as a number of US employment data which is due to be released this week.
