Latest news with #USPayrolls
Bloomberg
4 days ago
- Business
- Bloomberg
India Bucks Tepid Trend Across Emerging Asia as US Data Awaits
Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. Markets across much of emerging Asia traded in a narrow range ahead of US payrolls data, with the exception of Indian bonds that swung wildly after a bigger-than-expected interest-rate cut.
CNA
4 days ago
- Business
- CNA
Stocks on guard for payrolls, Tesla tumbles as Trump-Musk bromance sours
SYDNEY :Asian shares slipped on Friday as investors hunkered down for the all-important U.S. payrolls report, while Tesla suffered huge losses on the very public feud between President Donald Trump and billionaire Elon Musk. A run of soft economic data this week has markets wary of a downside surprise in the monthly payrolls print due later in the day, which would add to fears of stagflation while piling pressure on the Federal Reserve to ease policy in a hurry. Tesla shares bounced 0.8 per cent in after-hours trading after tumbling a whopping 14 per cent overnight to wipe off $150 billion in market value. That came after Trump threatened to cut off government contracts to Elon Musk's companies as the once close relationship turned into a bitter open disagreement. There were signs that tempers may be cooling a bit, with Trump telling Politico that "it's okay" when asked about the relationship and that White House aides had scheduled a call on Friday with Musk to broker a peace. Nasdaq futures rose 0.3 per cent and S&P 500 futures gained 0.4 per cent, while the losses in European stock futures narrowed, with EUROSTOXX 50 futures down just 0.1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent on Friday away from its eight-month peak. It is still set for a weekly rise of 2.1 per cent. Chinese blue chips eased 0.2 per cent and Hong Kong's Hang Seng dropped 0.5 per cent as a call between Trump and Chinese President Xi Jinping offered little clarity to ease ongoing trade tensions. "I think the fact that they are talking, the fact that there is a willingness to find a way through and the channels of communication are open is a positive," said Luke Yeaman, chief economist at the Commonwealth Bank of Australia. "But I think it's clear that there are still a lot of tensions in the relationship and that neither side wants to give too much away… There's not a lot of goodwill to work with to fundamentally improve the trade relationship." Most Asian shares are down slightly, but Japan's Nikkei is a rare bright spot in Asia, up 0.4 per cent, helping trim its weekly drop to 0.7 per cent. WAIT FOR PAYROLLS Weaker-than-expected labour market data, including a 47 per cent year-on-year jump in Challenger layoffs and a significant downside surprise in ADP's private payrolls, have dampened expectations for the payrolls report. Forecasts are centred on a rise of 130,000 jobs in May, with the unemployment rate holding steady at 4.2 per cent. Any unexpected weakness could bring the next U.S. rate cut forward and trigger a huge rally in Treasuries. Futures imply scant chances of a rate cut until September, which is about 93 per cent priced in, with another move likely to come in December. Yields on the benchmark ten-year Treasuries were flat at 4.3887 per cent, having risen 3 basis points overnight to bounce away from a one-month low. "We expect payrolls to lose additional momentum in May, printing a below-consensus 110,000," said analysts at TD Securities in a note to clients. "Markets have recently been singularly focused on tariffs and deficits, with macro taking a back seat in recent weeks. Our forecast may not be sufficient to catalyze this revamped focus on macro, but we expect downside surprises to generate a larger market reaction." The dollar was 0.2 per cent higher against its major peers on Friday just a touch above a six-week low as soft economic data dent the U.S. currency. The euro hit a six-week top of $1.1495 overnight after the European Central Bank cut rates but signaled that it was nearing the end of its year-long policy easing cycle. Investors have given up on a move in July, with the final move most likely to come in October or December. In commodities markets, oil prices were slightly lower but were headed for weekly gains on supply concerns. U.S. crude futures slipped 0.4 per cent to $63.12 a barrel but were up 3.8 per cent for the week. In precious metals, gold prices climbed 0.4 per cent to $3,366.78 an ounce. For the week, they are up 2.3 per cent.
Reuters
4 days ago
- Business
- Reuters
EUROPE Trump-Musk feud shakes markets pre-payrolls
A look at the day ahead in European and global markets from Stella Qiu It could be the most expensive breakup ever. The bromance-turned-to-brawl between U.S. President Donald Trump and billionaire Elon Musk sparked a 14% drop in Tesla shares overnight, wiping out $150 billion in market value. Then there's the tens of billions of dollars in SpaceX government contracts that Trump has threatened to cut. High-stakes political drama aside, investors have not lost sight of the U.S. payrolls report looming later in the day, after a run of soft economic data this week left markets wary of a downside surprise. Any unexpected weakness in the U.S. labour market could be enough to get the Federal Reserve's policy-makers thinking again about rate cuts, after sitting on their hands since December to assess the inflationary impact of Trump's tariffs. The Trump-Musk feud was not without wider consequences for markets, though. Even bitcoin prices tumbled 4% overnight as investors reckoned Trump's support should perhaps not be counted on indefinitely. Asian technology shares followed Wall Street lower, helping to nudge most of the region's stock markets into negative territory. Japan's Nikkei (.N225), opens new tab was an exception, rising 0.3%. There were signs in the Asia morning on Friday that tempers may be cooling down a bit, with Trump telling Politico that "it's okay" when asked about the breakup and Tesla stocks steadying in after-hours trading. In the meantime, investors found little reason to cheer the phone call on trade between Trump and Chinese President Xi Jinping, which produced little more than an agreement to talk further. As for the U.S. payrolls, forecasts are centred on a rise of 130,000 jobs in May, with the unemployment rate holding steady at 4.2%. Fed funds futures imply little chance of a rate cut until September, although a move at that time is about 90% priced in with another expected in December. Worries of a downside surprise on payrolls kept markets subdued. Wall Street futures , were mostly flat and European markets are set for a lower open, with EUROSTOXX 50 futures down 0.2%. In the currency markets, the euro rose to a six-week high of $1.1495 overnight after the European Central Bank cut rates but signalled it was nearing the end of its policy easing cycle. Investors have given up on the chances of a cut in July, while the final move is expected in December. Key developments that could influence markets on Friday: -- German industrial output, trade data for April -- Eurozone retail sales for April -- U.S. nonfarm payrolls for May
Bloomberg
04-04-2025
- Business
- Bloomberg
Trump Tariffs: US Stock Futures Sink as China Retaliates
President Trump defends his tariffs and dismisses the market meltdown. Rattled investors now await US Payrolls data with the Federal Reserve Chair Jerome Powell due to speak today. US stock futures tumbled as much as 4.1% early Friday after China retaliated against new US tariffs with levies on all American imports, exacerbating a rout that sent American equities to the worst day since 2020 on Thursday. Contracts on the S&P 500 Index plunged as China imposed a 34% tariff on all American imports starting April 10. All of the Magnificent Seven stocks including Nvidia, Tesla, and Apple fell premarket. The Opening Trade has everything you need to know as markets open across Europe. With analysis you won't find anywhere else, we break down the biggest stories of the day and speak to top guests who have skin in the game. Hosted by Guy Johnson and Lizzy Burden. (Source: Bloomberg)
