Asian markets stable as investors await US jobs report, dollar strong after spending data

From Investing.com: 2024-09-01 20:30:43

Asian share markets started the week quietly as investors awaited a data-packed week, including a U.S. jobs report that could influence the size of a rate cut. The dollar held onto gains after upbeat spending figures. Futures predict a 25 basis point cut on Sept. 18 with a 33% chance of a 50 basis point cut.

The Bank of Canada is expected to cut rates on Wednesday, with a 22% chance of a 50 basis point cut. The upcoming U.S. payrolls report is crucial, with analysts expecting a rise of 165,000 jobs and a drop in the unemployment rate to 4.2%. The market is watching Fed speakers closely following the job data.

Asian markets mostly followed Friday’s Wall Street rally, with the MSCI broadest index of Asia-Pacific shares outside Japan slightly down. Ten-year Treasury yields were at 3.914% after Friday’s inflation and spending data. The dollar reached 146.55 yen and faced resistance at 148.54. The euro was at $1.1046.

Concerns about OPEC+ increasing supply in October led to a drop in oil prices. Crude oil fell to $76.50 a barrel, while Brent crude lost to $73.17 per barrel. Gold prices were pressured by a firmer dollar and higher bond yields, trading at $2,502 an ounce. The European Central Bank is expected to cut rates following EU inflation data.



Read more at Investing.com: Asia shares steady, dollar firm before jobs test By Reuters