Yen Soars on Safe-Haven Demand Ahead of Key US Data
Global stocks and bonds rallied on Thursday ahead of key US data releases and comments from central bankers, which are expected to reinforce expectations that the Federal Reserve will raise interest rates this month.
The yen surged as investors sought safe-haven assets, with the currency gaining nearly 2% in two days. Japanese government bond yields slid from historic peaks, while sovereign bond yields fell across the board, hitting multi-year highs in recent weeks due to concerns about tighter monetary policy and deteriorating fiscal conditions.
US futures were up around 0.1%, with tech companies Broadcom, Snowflake, and Hewlett Packard Enterprise in focus after reporting earnings. The STOXX 600 index was a touch higher, while the dollar index fell 0.34% to 99.25 as the yen's rally weighed on the currency.
Investors are closely watching Friday's US payrolls report, which will provide crucial data on the labor market. Fed Board Governor Christopher Waller is due to speak after New York Fed President John Williams said rising long-term bond yields reflect a solid economy, but he was still collecting information for his next monetary policy decision.