|
Having already priced out half a percentage point worth of U.S.
rate hikes this cycle, markets will be looking to shave off more
from the currently expected 3.4% peak Fed rate if monthly jobs
data later on Friday plays ball.
Nonfarm payrolls increased by 268,000 jobs last month after
rising by 390,000 in May, a Reuters poll predicts. Weekly
jobless claims figures have already set the stage for a weaker
number; more Americans filed unemployment benefit claims last
week than expected, while layoffs surged to a 16-month high.
So, unless there's a blowout figure, it does look like the Fed
will slow the rate hike pace, once this month's 75 basis-point
move is past -- two of its hawkish officials signalled on
Thursday that could be the case.
But while global stocks have rebounded after first-half gloom,
European and U.S. shares are tipped for a weaker open on Friday.
However, Japan's Nikkei managed to close in positive territory
after being jolted by the shooting of former prime minister
Shinzo Abe.
The shooting caused some knee-jerk yen gains but the currency
has since eased off earlier highs.
But currency markets' whipping boy this week has been the euro,
which has fallen 2% against the dollar and is teetering on the
brink of parity versus the greenback.
The wait is on to see whether a strong U.S. payrolls print
pushes it over the edge.
Key developments that should provide more direction to markets
on Friday:
- Japan's service sector sentiment posted its first fall in four
months in June
-New York Fed President John Williams speaks
-U.S. non-farm payrolls
(Reporting by Sujata Rao; editing by Dhara Ranasinghe)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
