While European markets are in the red, their US counterparts have recouped some of yesterday’s losses, even after more data showing a cooling US economy, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 struggles while Wall Street edges higher
“US markets have managed to eke out some small gains in early trading, but in London the risk-off mood persists. Growth fears continue to be the big driver of losses, with the small US rebound merely a period of calm before another leg lower, potentially around Friday’s payroll report.”
JOLTS point to further US labour market weakness
“If today’s JOLTS are any guide, then Friday’s payroll data is unlikely to provide much comfort for investors. The Bank of Canada has joined the rate cutting party, but what is remarkable is that pricing of a 50bps cut from the Fed has continued to eke higher. If this persists into the meeting itself, it will mean that markets are setting themselves up for disappointment. Today’s data shows that the market is cooling, not that a recession is round the corner.”
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