Stock markets diverged and global bonds stabilised on Thursday as investors looked to US jobs data to cement rate-cut bets.
The latest weekly data released Thursday showed more first-time claims for unemployment benefits in the United States than analysts had expected, while figures from payroll firm ADP showed slowing private sector hiring in August.
Investors are now looking to US government data due out Friday amid hopes for further cuts to interest rates by the Federal Reserve.
鈥楢ll eyes will be on Friday鈥檚 nonfarm payrolls report with bad news likely to be interpreted as good news as it will raise the market probability that the Fed cuts rates,鈥� noted Victoria Scholar, head of investment at Interactive Investor.
David Morrison, senior market analyst at聽financial services provider Trade Nation, said the employment data 鈥榠s likely to play a central role in shaping the direction of equities, currencies and commodities over the coming fortnight.鈥�
Wall Street opened mixed, with the Dow dipping while the S&P 500 and Nasdaq Composite edged higher.
Traders brushed off news that President Donald Trump鈥檚 administration asked the US Supreme Court for an expedited ruling preserving tariffs after a lower court ruled against them last week.
In Europe, Frankfurt rose聽0.6 per cent despite Germany鈥檚 preeminent economic institutes cutting their growth forecasts.
Paris stocks slid, weighed down by a nine-per cent drop in shares of pharmaceutical firm Sanofi, after a disappointing trial of its drug for skin condition atopic dermatitis.
Elsewhere, the global bond market eased further after yields had earlier in the week jumped on concerns over mounting government debt.
鈥楾here are signs that the bond market rout could be over,鈥� said Kathleen Brooks, research director at trading group XTB.
She warned that risks still loomed, particularly a confidence vote in France next week that could topple the minority government.
A solid auction of 30-year Japanese government bonds offered further reprieve after yields had risen to record highs.
Tokyo鈥檚 stock market closed higher.
Hong Kong and Shanghai each dropped more than one per cent as a tech-driven rally ran out of steam.
Analysts said the decline followed a Bloomberg report that China鈥檚 financial regulators may implement measures to cool the pace of the rally in stocks.
Oil prices extended losses Thursday amid anticipation of excess supply in the coming months as OPEC+ nations are expected to further unwind production cuts.
In company news, shares in Japanese motor maker Nidec tumbled 22 per cent after it launched a probe into 鈥榠mproper accounting鈥� at its Chinese subsidiary.
