US Stock Data: Global Shares Mixed as Yellen Visits Beijing

US futures for the Dow Jones Industrial Average and the S&P 500 slipped slightly by less than 0.1% ahead of the opening bell. The market’s attention turned to Yellen’s meetings with senior Chinese officials in an attempt to address various contentious issues and promote global financial stability. During discussions with business representatives, Yellen criticized China’s treatment of US companies and their global shares export controls on semiconductor materials while defending US controls on technology exports, citing national security concerns.

All Eyes on US June Jobs Report

The release of the June jobs report on Friday is expected to have a significant impact on the transfer of shares. Analysts predict an increase of around 205,000 jobs in the US economy for the last month. This figure would be the lowest since December 2020. However, it still indicates a solid performance and does not suggest that the Federal Reserve is done with its efforts to slow down the economy and curb inflation.

An explosive increase in private hiring, as reported by payroll provider ADP on Thursday, added to market anxiety. ADP’s data often diverge from the government’s official numbers, but the strong figures raised concerns about how a robust job market could influence the Federal Reserve’s decision-making.

Implications for Fed Policy and Bond Yields

The Federal Reserve may respond to the strong jobs data by maintaining higher interest rates for a longer duration in its ongoing campaign to cool the economy and address inflation concerns. This expectation led to a surge in bond yields as traders adjusted their bets, reducing hopes for a potential interest rate cut early next year.

In European trading, Germany’s DAX and France’s CAC 40 each advanced 0.5%, while Britain’s FTSE 100 lost 0.2%. Asian markets saw Tokyo’s Nikkei 225 dropping 1.2% and Hong Kong’s Hang Seng declining 0.9%. The Shanghai Composite index experienced a 0.3% decline, Australia’s S&P/ASX 200 plummeted 1.7%, India’s Sensex saw a 0.6% drop, while Bangkok’s SET index remained relatively unchanged.

Global Market Performance

In other global shares movements, US benchmark crude oil gained 32 cents to reach $72.12 per barrel, while Brent crude, the sale of certificated shares increased by 30 cents to $76.82 per barrel. The US dollar weakened against the Japanese yen, falling to 143.26 yen, while the euro rose to $1.0898.

On Thursday, the Dow Jones Industrial Average dropped 1.1%, the S&P 500 lost 0.8%, and the Nasdaq Composite fell by 0.8%, reflecting the cautious sentiment in the markets.

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