Europe Index Futures Higher With Asia Shares
European equity-index futures strengthens with Asian shares amid a rally in government debt after the Bank of England (BoE) eases monetary policy, pacifying worries over the impact of the Brexit vote.
The dollar held steady ahead of U.S jobs data, which sent crude oil prices to drop and end at $41 a barrel.
Shares in consumer and energy sent Asian shares to rally, cutting the regional benchmark’s first weekly slump in over a month. Yields on 10-year Australian and Japanese debt slipped one basis point, led by gains in bonds globally.
The greenback has seen minimal movement, while the Australian dollar strengthened. U.S. crude oil prices drop after gaining two-day record-highs in more than a month as prices begun to wobble following a decline into a bear market this week.
The BoE trimmed growth estimates for the U.K. as policy makers announced a stimulus package to cope with the impact of Britain’s decision to leave the European Union. Market players are now shifting focus on the soon-to-be-announced nonfarm payrolls in the U.S.
Further, analysts are expecting reports to show continued labor market improvement, a significant factor for the Federal Reserve, suggesting whether to stick to its plan in continuing a tight monetary policy for this year.
“The BOE’s move looked like an inevitable choice, but it was taken as a positive signal for investors in terms of boosting expectations for increased liquidity in the global market,” said Heo Pil Seok, chief executive officer at Midas International Asset Management Ltd. in Seoul, which oversees about 10 trillion won ($9 billion).
“While improved sentiment is reflected especially in the equities market today, the U.S. data is something to keenly watch as it may fuel concerns of a rate hike.”
It is likely that payrolls will increase 180,000 workers in July, following about 287,000-person increase in June, based on the most recent data. Meanwhile, the jobless rate is expected to read 4.8 percent, from an earlier forecast of 4.9 percent last month.
European Shares Opens Higher
European shares opened higher amid Friday’s session, as a recoil in crude oil prices and the aggressive stimulus measures of BoE, backed by a pledge to take "whatever action is necessary" to cope with the economic impact from Britain’s vote to leave the European Union, help restore market players’ interest in riskier assets.
Asian shares rallied, but earlier gains remained capped ahead of the U.S. payroll reports for July.
It is likely that analysts are expecting some critical insights on the jobs report relative to the health of the world’s largest economy and is anticipated to offer fresh cues over the path of U.S. interest rates.
Analysts are expecting jobs to rally 185,000 in July after employment increased 287,000 jobs in June. The unemployment rate is anticipated to decline by about 4.8 percent from the previous reading of 4.9 percent.
U.S. crude futures dipped in Asian deals after gaining 2.7 percent at $41.93 a barrel as data showed a broadly slump at the U.S. delivery hub.
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