(Bloomberg) -- US stocks fluctuated as latest jobs data pointed to a resilient labor market, which remains a key concern for the Federal Reserve. Treasuries advanced and the dollar pared earlier declines.
The S&P 500 wavered and the Nasdaq 100 fell as data showed that the number of available job positions ticked down from a month earlier, but came in above the median estimate. Treasury yields declined, with the 10-year rate around 3.69%.
Investors in the US are awaiting the Fed's meeting minutes for clues about why the central bank raised its 2023 inflation forecast. After Wednesday's job openings data, they'll also be watching the nonfarm payrolls report on Friday, for any signs of possible softening in the labor market. The onslaught of economic data that is releasing this week could stoke day-to-day volatility.
"The tone of the minutes will be sufficiently hawkish as to serve as a reminder that the Fed still has work to do before arriving at terminal," wrote Ben Jeffery and Ian Lyngen of BMO Capital Markets. "Assuming the Fed's higher-for-longer commitment has enough backing to leave a rate cut in 2023 as the great unknown, there is little on the immediate horizon that would justify a bull steepener of any significance."
Minneapolis Fed President Neel Kashkari, who holds a vote on FOMC decisions this year, said the central bank has at least another percentage point of hikes to do this year, even as inflation shows signs of easing. He said this in an essay published Wednesday on Medium.
News of China considering further support for property developers boosted shares in Hong Kong. While China's about-turn from its Covid Zero policies has been widely cheered by investors, it still raises complicated questions about what it means for monetary policy, global inflation and demand for goods and services.
Meanwhile, a report showing French inflation unexpectedly slowed added to signs of easing price pressure in the euro area. The Stoxx Europe 600 Index saw broad gains.
Key events this week:
- FOMC meeting minutes, Wednesday
- Eurozone PPI, Thursday
- US ADP employment change, initial jobless claims, Thursday
- China trade, Caixin PMI, Thursday
- Eurozone retail sales, CPI, consumer confidence, Friday
- Germany factory orders, Friday
- US nonfarm payrolls, factory orders, durable goods, Friday
The main markets moves are:
Stocks
- The S&P 500 was little changed as of 10:09 a.m. New York time
- The Nasdaq 100 fell 0.5%
- The Dow Jones Industrial Average fell 0.2%
- The Stoxx Europe 600 rose 1.3%
Currencies
- The Bloomberg Dollar Spot Index fell 0.4%
- The euro rose 0.4% to $1.0591
- The British pound rose 0.5% to $1.2026
- The Japanese yen fell 0.4% to 131.48 per dollar
Cryptocurrencies
- Bitcoin rose 0.6% to $16,765.57
- Ether rose 2.8% to $1,244.91
Bonds
- The yield on 10-year Treasuries declined five basis points to 3.69%
- Germany's 10-year yield declined nine basis points to 2.30%
- Britain's 10-year yield declined 13 basis points to 3.52%
Commodities
- West Texas Intermediate crude fell 3.7% to $74.09 a barrel
- Gold futures rose 0.9% to $1,863 an ounce
This story was produced with the assistance of Bloomberg Automation.
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