Morning report

Quiet Day on the Job

Wall Street edged higher as investors awaited the upcoming payrolls report for further confirmation on the path for rate cuts. European stocks also gained. Australia snapped a four-day losing streak, taking its lead from the US. Asian benchmarks were mixed.

Job data in line with expectations push stocks higher

Wall Street’s three main benchmarks moved higher as job market data did not alter expectations for a rate cut this month. The DOW gained +0.8%, the S&P 500 added +0.7%, and the NASDAQ rose +0.7%. Broadcom gained +1.2% ahead of its quarterly results due after the bell. Amazon and Meta also supported the market, rising +3.0% and +1.0% respectively. Data showed that new unemployment benefit applications rose more than expected, while private-sector hiring slowed. The closely watched monthly payrolls report is due on Friday. Salesforce fell -5.2% after forecasting 3Q revenue below analyst estimates. Among other gainers, American Eagle Outfitters surged +37.8% after the apparel company forecast third-quarter comparable sales well above estimates, driven by successful celebrity collaborations with Taylor Swift’s fiancé, NFL star Travis Kelce, and actress Sydney Sweeney. The US two-year yield fell -2bp to 3.59%, while the 10-year yield dropped -4bp to 4.17%.

Europe and London modestly upward

The pan-European STOXX 600 gained +0.6% as investors remained cautious ahead of key US jobs data. The FTSE 100 rose +0.4%. EasyJet fell -4.2%, while Jet2 dropped -12.0% after saying it expected EBIT at the lower end of its forecast range. Porsche eased -1.0% and was relegated to the German mid-cap index. Sanofi sank -8.0% after its dermatitis drug failed to meet expectations in phase three trials.

ASX breaks losing streak after following Wall Street cues

Australia’s ASX 200 snapped a four-day losing streak, rising +1.0%. Iress jumped +7.0% after appointing a new CEO. Austal gained +4.3% after the shipbuilder announced the US Coast Guard had agreed to a US$314m project to procure materials for three additional vessels. New Zealand’s NZX 50 added +0.5%. Japan’s Nikkei 225 rose +1.5%, while Korea’s Kospi gained +0.5%. China’s Shanghai Composite fell -1.3% and the CSI 300 dropped -2.1%. Hong Kong’s Hang Seng shed -1.1%.

WTI Crude down, Gold down, Iron Ore up

WTI crude fell -1.0% to US$63.33/bbl, gold lost -0.3% to US$3,549.33/oz, and iron ore rose +0.7% to US$103.24/t.