(Bloomberg) -- Stocks drifted as investors awaited an annual review of US jobs data as well as Federal Reserve meeting minutes for further clues on interest rate cuts.
Europe’s Stoxx 600 edged higher and US equity futures posted small moves. The yield on 10-year Treasuries was flat, while a gauge of dollar strength paused a three-day run of declines.
Anticipation is mounting before Fed Chair Jerome Powell’s Jackson Hole speech at the end of the week that could decide if the blistering rebound in markets has further to run. Bond traders are betting big on a Treasury market rally driven by expectations a cycle of Fed rate cuts is approaching.
Market moves are “indicative of investors’ cautious wait” for Powell’s message, said Homin Lee, senior macro strategist at Banque Lombard Odier & Cie SA in Singapore. Wednesday’s data could “call into question the underlying strength of the US labor market.”
Signs of weakness in the annual recalibration of US payrolls could point to the need for aggressive Fed rate cuts and stir memories of the market meltdown in August after a disappointing payrolls report.
Goldman Sachs Group Inc. and Wells Fargo & Co. economists expect the government’s preliminary benchmark revisions on Wednesday to show payrolls growth in the year through March was at least 600,000 weaker than currently estimated. While JPMorgan Chase & Co. forecasters see a decline of about 360,000, Goldman indicates it could be as large as a million.
China Tech
Stocks in Asia snapped a three-day winning streak, dragged by Chinese stocks in Hong Kong.
Technology stocks dipped on concerns over the country’s consumption outlook, Walmart Inc.’s planned sale of its stake in JD.com Inc. and poor earnings from key players including Kuaishou Technology.
Brent crude declined a third day on the back of a potential cease-fire in Gaza. Gold was steady near a record high after the dollar’s recent run of losses amid rate cut expectations. A weaker greenback typically aids gold as it is priced in the US currency.
Key events this week:
Some of the main moves in markets:
Stocks
Currencies
Cryptocurrencies
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
--With assistance from Rob Verdonck and Jeanny Yu.