Investors are facing uncertainty regarding the tight U.S. labor market and the Federal Reserve’s indication of higher interest rates for a longer period of time. The dollar weakened and global stocks saw a slight increase on Thursday. European stocks rebounded after three days of losses, while Wall Street’s major indexes traded relatively unchanged. Long-dated Treasury yields remained near 16-year highs ahead of the highly anticipated U.S. jobs report on Friday. Oil prices continued to decline as the demand outlook remained uncertain. San Francisco Fed President Mary Daly commented that monetary policy is now in “restrictive territory.” However, investors have set a higher neutral rate than the Fed anticipates, adding to the uncertainty. Initial claims for state unemployment benefits increased slightly, but the labor market and consumer both remain strong. Long-dated Treasury bonds were flat or slightly higher, while shorter-dated notes fell. The market expects higher interest rates for a longer period of time, but there are still uncertainties and questions surrounding the topic. The dollar index fell, while the euro and yen saw gains. Analysts predict weakness for the dollar in the future. Global stocks saw some gains, with the travel and leisure sector showing strength due to the prospect of easing fuel costs. The major Wall Street indexes pared earlier losses, with the Dow Jones Industrial Average rising slightly. Asian shares rebounded from 11-month lows, following small gains on Wall Street. European government bond yields were mixed, with the German benchmark yield decreasing slightly. Crude oil futures declined, as investors are concerned about a peak in fuel consumption. Gold prices also edged lower for the ninth consecutive session.
GLOBAL MARKET Dollar slips, stocks gain amid still tight U.S. labor market