← Go back Dec 12, 2023
INTERNATIONAL BUSINESS TIMES NEWSLETTER SIGNUP My account Log Out Dec 05, 9:57 PM EST World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Crypto Opinion NEWSLETTER My account Log Out US Edition World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Crypto Opinion Listings & More Spotlight Glossary SMB Forum Glossary K-Wave CEO Spotlight Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States NEWSLETTER Follow Us Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States Business Asian Markets On Front Foot As US Jobs Data Provide New Rate Cheer By AFP News 12/05/23 AT 9:57 PM EST Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Share on Flipboard Share on Pocket Data showing a fall in US job openings indicated the labour market was softening, giving fresh hope that the Federal Reserve could cut rates soon AFP Asian stocks rose Wednesday after a tepid start to the week as data pointing to a softening US labour market restoked hopes the Federal Reserve will cut interest rates in the new year. The below-forecast job openings figure bolstered optimism ahead of the closely watched non-farm payrolls report due Friday, which investors hope will confirm the economic slowdown sought by the central bank. Markets rallied in November on growing hope that with inflation continuing to fall and other parts of the economy easing, the Fed will be able to slash rates in 2024, with some suggesting as soon as the first quarter. The bank's statement after next week's policy meeting will be pored over by traders hoping for clues about decision-makers' thinking on rates in light of the recent data. "A clear trend of a weakening jobs market can be observed, providing evidence that rate hikes are working their way through the economy," said Kyle Rodda at Capital.com. But the past few days have seen fears building that the buying may have been overdone, and traders have taken a step back, with Asia particularly struggling. "The latest US data conveyed a somewhat Goldilocks message," said Stephen Innes at SPI Asset Management "Economic growth appears satisfactory (as evidenced by services data), and there are indications that inflation may be poised to moderate further, given the ongoing rebalancing in the job market." He added that "the potential risk to the Santa rally doesn't hinge on a catastrophic event (despite elevated geopolitical tensions) or an abrupt negative turn in the economic data. Instead, it revolves around the simple exhaustion of the investment flows that propelled last month's historic surge". "Additionally, there's a concern about the possibility that rate-cut pricing for 2024 might be overdone." While the jobs figures reinforced rate cut hopes, Wall Street's three main indexes ended mixed. However, Asia enjoyed some much-needed buying, with Tokyo up more than one percent along with Sydney. Hong Kong and Shanghai were also up, though sentiment was dented after Moody's on Tuesday warned it had downgraded its outlook for China's credit rating owing to the country's rising debt levels and concerns over its battered property sector. Sydney, Singapore, Seoul, Wellington, Taipei and Jakarta were also on the rise. Elsewhere, oil prices edged up a day after falling to a five-month low on figures showing near-record US exports, which observers said investors feared could offset pledges by Saudi Arabia and other major producers to cut output. Bitcoin dipped slightly below after breaking above the $44,000 level last seen in April last year, helped by optimism the United States will soon allow broader trading of the popular cryptocurrency. Tokyo - Nikkei 225: UP 1.7 percent at 33,339.26 (break) Hong Kong - Hang Seng Index: UP 0.7 percent at 16,427.53 Shanghai - Composite: UP 0.1 percent at 2,974.47 Dollar/yen: UP at 147.27 yen from 147.16 yen on Tuesday Euro/dollar: DOWN at $1.0789 from $1.0801 Pound/dollar: UP at $1.2602 from $1.2596 Euro/pound: DOWN at 85.62 pence from 85.73 pence West Texas Intermediate: UP 0.1 percent at $72.42 per barrel Brent North Sea crude: UP 0.2 percent at $77.35 per barrel New York - Dow: DOWN 0.2 percent at 36,124.56 (close) London - FTSE 100: DOWN 0.3 percent at 7,489.84 (close) © Copyright AFP 2023. All rights reserved. Join the Discussion MOST READ IN Business 1 In Rare Israel Rebuke, US Restricts Visas On Extremist Settlers 2 Washington Post Staff To Strike On Thursday 3 East African Regional Force Begins Withdrawal From DRC 4 Religious Leaders, Victims' Relatives Hold UK Vigil Over Israel-Hamas War 5 US Commerce Chief Warns Against China 'Threat' NEWS World U.S. Economy & Markets Companies Technology Digital Life Culture Sports Opinion Featured Social Capital Glossary SMB Forum Spotlight Crypto K-Wave CEO Spotlight ABOUT About Us Contact us Advertise with us Terms & Conditions Privacy Policy Cookie Policy Editions United States Australia Brazil Colombia France Germany Indonesia India International Italy Editions Japan Nigeria Singapore South Africa South Korea Spain Mexico United Kingdom FOLLOW US Facebook Twitter LinkedIn Newsletter © Copyright 2023 IBTimes LLC. All Rights Reserved.
Read more: ibtimes
