Stocks, US Futures Start Week With Modest Rebound: Markets Wrap – Yahoo Finance

(Bloomberg) — Stocks staged a partial recovery on Monday after a disappointing U.S. jobs report sent stocks tumbling but also sparked disagreement among economists and traders over how aggressively the Federal Reserve should cut interest rates.

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The Stoxx Europe 600 index rose 0.5%, clawing back some of last week's 3.5% decline. Futures for the S&P 500 and Nasdaq 100 both rose after the underlying indexes fell on Friday after U.S. payroll numbers came in lower than expected. The 10-year Treasury yield rose for the first time in five days. European bonds fell, with Germany's 10-year bund yield rising 5 basis points. The dollar benchmark rose.

The choice facing Fed officials is sure to be a contentious one: whether to begin easing gradually or cut rates ahead of schedule. With recession fears also resurfacing, investors are scouring economic data for clues about the direction of interest rates. U.S. consumer price inflation will be the next focus on Wednesday. Meanwhile, the European Central Bank is expected to cut interest rates when it meets on Thursday.

A September rate cut from the Fed is virtually set, but “of course the question is how many and how big the cuts are after that,” Louis Kuijs, chief Asia-Pacific economist at S&P Global in Hong Kong, said in an interview on Bloomberg TV. “There are a lot of risks to the global economy” and that's a key issue for the Fed.

September is shaping up to be a volatile month for markets, with stocks and commodity prices both falling on concerns about slowing global economic growth. Wall Street's fear gauge, the Cboe Volatility Index, closed at its highest in one month on Friday.

Asian shares followed Friday's global sell-off, with shares from Taiwan to Australia dropping on concerns that global growth will slow. Japan's Nikkei fell for a fifth straight day and the MSCI Asia Pacific index fell 1.8%, led by declines in chipmakers Taiwan Semiconductor Manufacturing Co. and Samsung Electronics.

China's CSI 300 index fell for a second straight day, dropping more than 13% from its peak in May this year. Any further drop would mean the index would fall to its lowest level since early 2019, suggesting years of policy efforts to stimulate the economy and support stock prices are in vain.

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Iron ore fell below $90 a tonne for the first time since 2022 as losses widened on weak demand from top buyer China. Crude oil rose from its lowest since 2021 after a big weekly drop pushed futures close to levels considered oversold.

Major events this week:

• China Trade, Tuesday

• China's National People's Congress Standing Committee meeting begins on Tuesday

• German CPI, Tuesday

• UK jobless claims, unemployment rate on Tuesday

• Harris vs. Trump debate, Tuesday

• Bank of Japan Governor Junko Nakagawa speaks on Wednesday

• UK Industrial Production, Wednesday

• U.S. Consumer Price Index, Wednesday

• Japan Producer Price Index, Thursday

• Bank of Japan Governor Naoki Tamura speaks on Thursday

• Eurozone ECB interest rate decision on Thursday

• U.S. initial jobless claims, producer price index Thursday

• Eurozone industrial production on Friday

• French Consumer Price Index, Friday

• ECB Governing Council member Olli Rehn speaks on Friday

• University of Michigan Consumer Confidence, Friday

Some of the key market developments:

stock

• The Stoxx Europe 600 index was up 0.5% as of 8:10 a.m. London time.

• S&P 500 futures up 0.5%

• Nasdaq 100 futures rose 0.7%

• Dow Jones Industrial Average futures up 0.4%

• MSCI Asia Pacific Index fell 1.3%

• The MSCI Emerging Markets Index fell 1.2%.

currency

• The Bloomberg Dollar Spot Index rose 0.2%.

• The euro fell 0.2% to $1.1059.

• The Japanese yen fell 0.6% to 143.22 yen to the dollar.

• The offshore yuan weakened 0.3% to 7.1134 yuan per dollar.

• The British pound fell 0.2% to $1.3098.

Cryptocurrency

• Bitcoin rose 0.7% to $54,773.89.

• Ether rose 1.1% to $2,300.89.

Bonds

• The yield on the 10-year Treasury note rose 4 basis points to 3.74%.

• German 10-year government bond yields rose 5 basis points to 2.22%.

• UK 10-year government bond yields rose 5 basis points to 3.93%.

merchandise

• Brent crude rose 1.1% to $71.85 a barrel

• Spot gold fell 0.3% to $2,489.29 an ounce.

This story was produced with assistance from Bloomberg Automation.

–With assistance from Georgina MacKay and Matthew Burgess.

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