US futures remain higher ahead of jobs data

by Andre Janse van Vuuren and Anand Krishnamoorthy 

US stock futures are holding onto two days of gains as investors await further data on the labor market, which has so far held up better than expected amid the Trump administration’s trade war. 

S&P 500 contracts were little changed after the US benchmark posted consecutive advances for the first time since mid-May. MSCI’s gauge for global equities hit an all-time high after gains in European and Asian stocks. The dollar fell 0.1% and US Treasuries held steady. 

While some economists fear a notable weakening in US employment in coming months under the weight of tariffs, that hasn’t shown up in the data yet. The muted impact has lifted optimism and helped offset concerns over President Donald Trump’s trade policies, which economists have warned could lead to an economic slowdown. 

Investors will follow services data and ADP’s report on private-sector employment later Wednesday for updated information on the strength of the US economy, ahead of Friday’s nonfarm payrolls report. 

“We’re not seeing the shocks yet in terms of how the tariffs will impact the labor market, for example, how it will impact inflation,” Moritz Kraemer, chief economist and head of research at LBBW Bank, said on Bloomberg TV. “This is just deferred.” 

In South Korea, the Kospi Index jumped 2.7% after the country elected a new president, capping six months of political chaos. The Korean won gained 0.8%.  

“A confluence of clearer macro and political signals is giving markets fresh air,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “Optimism brewed on Wall Street overnight after upbeat job data, and was amplified in Asia by Korea’s post-election clarity. Together, they’ve handed investors a solid reason to stay risk-on.” 

Corporate Highlights: 

• China is considering placing an order for hundreds of Airbus SE aircraft as soon as next month. 
• Remy Cointreau SA withdrew its long-term sales guidance, blaming tariff policies in America and China and a stunted recovery in the US market. 
• CrowdStrike Holdings Inc. shares fell after the cybersecurity company projected revenue for the current quarter that trailed estimates. 
• Brookfield Asset Management plans to invest up to 95 billion kronor ($9.9 billion) developing artificial intelligence infrastructure in Sweden that will take 10 to 15 years to construct. 
• Hacksaw AB, a developer and distributor of online betting games, is planning an initial public offering in Stockholm as the summer IPO window kicks off in Europe. 

Some of the main moves in markets: 

Stocks 

• The Stoxx Europe 600 rose 0.3% as of 8:46 a.m. London time 
• S&P 500 futures were little changed 
• Nasdaq 100 futures were little changed 
• Futures on the Dow Jones Industrial Average were little changed 
• The MSCI Asia Pacific Index rose 0.9% 
• The MSCI Emerging Markets Index rose 1.1% 

Currencies 

• The Bloomberg Dollar Spot Index fell 0.1% 
• The euro rose 0.2% to $1.1391 
• The Japanese yen was little changed at 143.94 per dollar 
• The offshore yuan was little changed at 7.1891 per dollar 
• The British pound rose 0.1% to $1.3535 

Cryptocurrencies 

• Bitcoin fell 0.4% to $105,411.01 
• Ether rose 0.4% to $2,626.63 

Bonds 

• The yield on 10-year Treasuries was little changed at 4.45% 
• Germany’s 10-year yield was little changed at 2.52% 
• Britain’s 10-year yield advanced one basis point to 4.65% 

Commodities 

• Brent crude was little changed 
• Spot gold rose 0.2% to $3,360.86 an ounce 

This story was produced with the assistance of Bloomberg Automation.