· Stocks loiter around peaks as traders wait for data
Stocks chopped around record peaks on Tuesday, while the dollar was pinned near recent lows, as markets awaited U.S. jobs data and looked ahead to crucial central bank meetings in Europe and United States for guidance on the interest rates outlook.
MSCI’s broadest index of Asia-Pacific shares outside Japan touched a three-month peak, before profit-taking in recently strong Chinese markets pulled it 0.4% lower. Aussie stocks hit a record high, while Japan’s Nikkei rose 0.5%.
World stocks sat just below Tuesday’s record, however momentum has clearly ebbed from the year-long COVID-19 rally as investors begin to worry a stronger-than-expected rebound means sooner-than-expected monetary policy tightening.
U.S. and European equity futures were steady, with S&P 500 futures flat and EuroSTOXX 50 futures up 0.2%.
“Non-farm payrolls looms large on Friday,” said National Australia Bank’s head of currency strategy, Ray Attrill, and could rouse financial markets from a few weeks of inertia.
After a big miss in April, when monthly hiring of 266,000 confounded expectations for 1 million, May estimates range between 400,000 and 1 million, with consensus around 664,000.
“The uncertainty around payrolls will have an influence on sentiment...whether we get a print nearer to 250,000 or a million is going to have quite some impact I think.”
European factory gate price surveys and the U.S. Federal Reserve’s “beige book” economic snapshot, both due later on Wednesday, will also be closely watched while Fed and European Central Bank meetings later in June loom largest on the horizon.
· Elon Musk tweets again, sending shares of ‘Baby Shark’ investor soaring
Shares of Samsung Publishing, a major shareholder in the producer of “Baby Shark,” soared on Wednesday after a tweet by Tesla CEO Elon Musk about the viral children’s song.
Shares of Samsung Publishing in South Korea soared more than 10% at one point during regular trading on Wednesday, before paring some gains to close 6.29% higher. The company has no affiliation with South Korean conglomerate Samsung Group, even though they share the Samsung name.
· European markets cautiously higher, breaking from muted sentiment elsewhere
European stocks are expected to see a cautious start to the trading day on Wednesday, breaking away from lackluster sentiment seen across other global markets.
The pan-European Stoxx 600 added 0.4% in early trade, building on Tuesday’s strong performance that took the index to record highs. Oil and gas stocks added 1% to lead gains as all sectors and major bourses edged into positive territory.
Investors in the U.S. and Europe are looking ahead to key U.S. jobs data later this week and upcoming meetings of the Fed and the European Central Bank.
There are no major earnings or data releases in Europe on Wednesday, although investors interested in Russia will be watching for comments from officials and business leaders attending the St. Petersburg International Economic Forum.
Reference: CNBC, Reuters
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