World Stocks Rise Ahead of US Jobs Data
Stocks around the world rose on Thursday, as optimism over a COVID-19 vaccine supported sentiment ahead of the release of the US jobs data.
Major Asian indexes traded in the green, with China’s blue-chip CSI 300 index closing at a 2-1/2-year high. Meanwhile, Hong Kong’s Hang Seng surged 2.8% to HK$25,124.19. This is while investors dismissed worries over sweeping national security law introduced by Beijing.
In a sign the positive sentiment will continue, E-minis for the S&P 500 inched up by 0.8%.
Stock markets in Europe edged higher as well. The pan-European STOXX 600 grew by 1% to €364.84 for its fourth day of gains. The banking, automobile, and travel & leisure sector became the top performers, climbing between 1.5% and 2%.
Germany’s DAX index rose 1.5% to €12,445.05, while France’s CAC 40 also advanced by 1.3% to €4,991.54.
Economic Rebound vs. COVID-19
The financial markets started the second half of 2020 on a positive note this week. Business surveys showed the coronavirus-driven decline in global manufacturing has lessened in June.
News of the COVID-19 vaccine developed by US pharmaceutical giant and German biotech group BioNTech SE performing well in early-stage human trials helped strengthen sentiment as well.
Progress on the long-anticipated vaccine has become doubly important as events in the US, the UK, and elsewhere have caused uncertainty over the preparedness and ability of western countries to implement lockdowns effectively enough to control the virus’ spread.
Data collected by the Johns Hopkins University showed the number of reported cases in the US surged over 50,000 on Wednesday, setting a record for one day.
The focus will be on US jobs data, which is due later Thursday. Analysts expect it to reveal more jobs arising in June, although rising COVID-19 cases threaten to impede the recovery of the world’s largest economy.
A better-than-expected outcome could go some ways to settling the near-term debate regarding the U.S. labor market. Specifically, around the idea that it will heal relatively quickly and justify new highs in US equities, according to strategist Stephen Innes.
Economists estimated that the US added 3 million jobs in June, following an unexpected 2.5 million gain in May. However, the two months of growth would still seem less important when compared to the 22 million job loss registered in March and April.
The eurozone’s unemployment data for the month of May is also set to be released later in the day. It is likely to show a 7.7% rise in the unemployment rate compared with 7.3% in April.
Tickers: pan-European STOXX 600 (STOXX), CSI 300 index (CSI300), Hang Seng (HSI)
