European stocks up; US jobs data in focus

The Stoxx 600 Index headed for its biggest weekly advance in two months, boosted by gains in oil stocks as crude prices rallied.

Jun 07, 2019 10:06 IST India Infoline News Service

Stocks rose in Europe on Friday along with US equity futures in the run-up to a key American jobs report. The dollar climbed and Treasury yields were steady.

The Stoxx 600 Index headed for its biggest weekly advance in two months, boosted by gains in oil stocks as crude prices rallied. Futures on the S&P 500 and the Dow Jones Industrial Average signaled further equity gains, while Japanese and South Korean shares also advanced. China’s markets were closed for a holiday.

US-Mexico trade talks are set to resume Friday, with Vice President Mike Pence saying his country still plans to impose tariffs on its neighbor next week. The offshore yuan fell to its weakest level since November 2018 before paring its loss slightly as People’s Bank of China Governor Yi Gang said in an interview with Bloomberg that the nation has tremendous room to adjust policy.

All eyes are on the U.S. employment report due later Friday for clues on the strength of the economy, after Federal Reserve Chairman Jerome Powell signaled this week he’s open to easier policy as trade tensions persist. Investors are pricing in a 93% chance of a rate cut by September, Fed fund futures show. Powell’s counterpart in Europe, Mario Draghi, indicated Thursday he will react to any deterioration in the outlook for the region’s economy, though some had expected a clearer signal he’s willing to further loosen policy.

Source: Bloomberg

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