Futures in European equities and Wall Street stock markets on Friday backtracked on U.S. job data, which could force the Federal Reserve to reconsider its monetary policy.
Stocks 600 fell 0.2.2 percent, hovering just below the all-time highs achieved last month, while the UK FTSE rose 100.1 percent. Futures markets will mark the blue-chip S&P 500 stock index as a flatline when Wall Street opens for trading.
Economists expect the U.S. government to report on Friday that the fast-moving economy added about 1 million jobs in April. Investors will scrutinize non-farm payroll reports on possible Fed’s next steps Dr. It will continue with one month bond 120bn bond purchases until the labor market recovers.
Analysts at Standard Chartered say 1.5 million jobs will not be “enough for the Fed to move.” “Between 1.5m and 2m, there is a possibility of uncertainty about Fed sentiment.”
Monica Defend, head of Amundi’s research, said the issue was “related” as the US and European stock markets were trading around record highs. He said the rapid recovery in corporate income, encouraged by the current market description of economic recovery and supportive monetary policy, “has become very complacent,” he said.
He added that the ten-year Treasury yield, which was 1.57 percent stable on Thursday and set the tone for global orrow spending and stock market valuations, “is inconsistent with a U.S. economy that is recovering at this pace,” he added.
Amundi, Europe’s largest fund manager, is now “making a profit in equity positions in developed markets”.
Roger Lee, head of InvestEC’s UK equity strategy, said there was a strong “communication challenge” in the run-up to the withdrawal of emergency financial assistance from central financial banks around the world.
“If this is done in an orderly manner, you can expect a gentle continuation of this year’s stock market rotation,” from lockdown beneficiaries such as oil producers and technology stocks in economically sensitive businesses such as banks. “If it causes chaos, it will be an event to sell what you can.”
On Thursday, the Bank of England upgraded its growth forecast for the UK economy but stalled without taking any action. Canada To spend its asset purchases.
BOE maintained its quantitative easing size at 89 895 billion, as well as holding its key interest rate at a record low of 0.1 percent. It has since added that “now it can be slowed down a bit” after purchasing its assets. Influential buyer Regarding the UK government’s debt last year, “this operational decision should not be interpreted as a change in position in monetary policy.”
Sterling rose 0.2 percent against the dollar to 1.9999.
Trading partners were measured in dollars against the basket of currencies, but declined 0.0 percent. Brent crude fell 0.2 percent to $ 68.82 a barrel.