Global Stocks Steady After Big Asia Falls Post US Payrolls
“Friday’s impressive jobs number did little to negate market expectations of a July rate cut, with the futures market still pricing in a 100% chance that Powell & Co. will act,” said Joshua Mahony, Senior Market Analyst at IG.
“However, we have seen the more speculative positions quelled after Friday’s jobs report, with the 26% chance of a 50 basis point move being trimmed back down to just 2.5%.”
In Europe, Germany’s DAX index was down 0.2% to 12,538 46.65 while the FTSE 100 of leading British shares fell was steady at 7,553. The CAC 40 in France was 0.1% lower at 5,587.
Wall Street was poised to open slightly lower with Dow futures and the broader S&P 500 futures down 0.2 percent.
Earlier in Asia, traders had their first chance to respond to Friday’s U.S. jobs data and they fell sharply. The Shanghai Composite Index fell 2.6% to 2,933.36 while Tokyo’s Nikkei 225 lost 1% to 21,534.35. Hong Kong’s Hang Seng retreated 1.5% to 28,331.69 and Seoul’s Kospi declined 2.2% to 2,046.17.
ENERGY: Oil prices were fairly steady with benchmark U.S. crude down 3 cents to $57.48 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price international oils, was unchanged at to $64.23.
CURRENCY: The euro was flat at $1.1222 while the dollar rose 0.1% to 108.51 yen.