Equity Indices Higher Ahead of Non-Farm Payrolls
Global equities trading higher before the NFP report on hopes that US might delay to impose tariffs to Mexican imports as negotiation continues. Asian shares finished mostly higher and European markets trading broadly higher with the CAC40 in Paris registering a hefty 1.43% higher. German industrial production slumped by 1.9% in April (consensus: -0.4%) when compared to the month before and was 1.8% lower year-on-year, led a by 3.3% month-on-month drop in orders for capital goods. The Deutsche Bundesbank, Germany’s central bank, earlier today slashed its growth forecast for 2019 to 0.6% from 1.6%. ECB yesterday kept interest rates unchanged and extended the period it expects rates to remain on hold through at least the first half of 2020. Futures in Wall Street are also trading 0.30 percent higher.
The U.S. Labor Department will publish its monthly employment report for May at 12:30 GMT. Economists forecast that the U.S. economy created about 185,000 jobs in May, while the unemployment rate is expected to remain steady at 3.6% at a 49-year low level.
The market is placing 25% chance of a rate cut at the Fed’s coming policy-setting meeting June 18-19, according to CME Group data.