Global Markets Rise as Volatility Eases Ahead of US Jobs Data
Global markets are trading higher today as volatility in bond and currency markets eases ahead of key US jobs data. The data could shape expectations for the Federal Reserve's next policy move, with a strong jobs report potentially reviving bets on a second rate increase this month.
Chris Weston, head of research at Pepperstone, said 'With the Fed now myopically focused on inflation and price pressures, a hot wages print could prove particularly influential for US rates, Treasuries, and the dollar.'
The pan-European STOXX 600 index rose 1.09% in morning trading, while Britain's FTSE 100 increased by 0.58%, Germany's DAX advanced 1.16%, and France's CAC 40 gained 1.12%. In contrast, Japan's Nikkei closed 0.94% lower, and Hong Kong's Hang Seng fell 2.6%.
Oil prices declined, with Brent crude futures dropping 3% to $99.25 a barrel, and West Texas Intermediate (WTI) falling 3.9% to $89.22. Spot gold held its ground at $4,181.59 an ounce, while U.S. gold futures rose 0.2%.
The Canadian dollar weakened against the US dollar, trading at $1.4234 per US$1, with a day range of 70.23-70.41 US cents in early trading. The US dollar index declined 0.18% to 101.92.