Market participants await the latest US employment data to determine how the Federal Reserve will alter its policy. According to the San Francisco Fed President, Mrs. Daly, a rate hike may not be necessary if the employment sector shows a slowdown. According to Mrs. Daly, if bond yields remain this high, the central bank may not be required to raise interest rates again but hold in the longer term. However, this will largely depend on the employment data, and if the employment data reads higher than expectations, bond yields are again likely to rise and pressure the stock market.
All three of the leading US indices ended the day lower and would have witnessed a poor session if the price did not retrace towards the end of the session. By the end of the day, US indices honored the set price range, as said in yesterday’s market analysis. The NASDAQ saw the most significant decline, falling 0.36%, the Dow Jones losing 0.05%, and the SNP500 0.13%. European indices are trading slightly lower during this morning’s Asian session but are improving as the cash open nears. Global institutions may potentially be avoiding US-based assets and opting for EU equities due to the upcoming Non-Farm Payroll data. However, the US employment data will influence both European and UK equities.
