European Stocks Set To Open Lower Following Powerful US Jobs Data

European Stocks Set To Open Lower Following Powerful US Jobs Data

European Stocks Set To Open Lower Following Powerful US Jobs Data

The dollar index, which measures the greenback against a basket of major currencies, was a shade weaker at 97.245 after climbing to a 2-1/2-week top of 97.443 on Friday. Natural gas rose 2 cents to $2.40 per 1,000 cubic feet.

As markets enter the second half of 2019, analysts and investors are closely watching the Fed, putting new emphasis on the central bank's meeting at the end of the month.

The Japanese yen decreased 0.2% to 108.672 per dollar, the weakest in more than five weeks. Immediate resistance is located at 1.1256 (23.6% retracement of 1.1412 and 1.1207), a break above targets 1.1310 (50.0% retracement). The CAC is seen around 17 points lower at 5,576. The benchmark S&P 500 index closed at record highs three days in a row last week before stumbling Friday following a report that showed USA employers added a robust 224,000 jobs in June and stoked uncertainty about the Fed's next move on interest rates. Hence, all eyes are on Fed Governor Jerome Powell, who will deliver his semiannual testimony before the Congress on Wednesday. The pair was trading 0.1 percent up at 108.53, having hit a high of 107.63 on Friday, its highest since Jun. 18. "Employment growth remains a bright spot amid a fairly mixed bag of US data and yet markets have come to expect a cut now so (they) will fall out of bed if they don't get one". Moreover, looming concerns over a no deal Brexit and increased United Kingdom political uncertainty continued to dent the bid tone around the British pound.

European stocks edged lower. Immediate resistance is located at 1.2579 (5-DMA), a break above could take it near 1.2636 (10-DMA).

Beyond that, policymakers at the Federal Open Market Committee meeting this month will discuss whether the USA needs an "insurance cut" amid a slowing global economy, trade frictions and low inflation.

U.S. stocks fell on Monday, dragged down by losses in Apple and Boeing and as investors cut back bets of an aggressive interest rate cut by the Federal Reserve later this month.

The broad-based S&P 500 also shed 0.6 percent, falling to 2,973.91, while the tech-rich Nasdaq Composite Index was one percent lower at 8,084.48. The underlying gauge fell 0.2% on Friday.Futures on Japan's Nikkei 225 were little changed in Singapore.Hang Seng futures dipped 0.3%.Futures on Australia's S&P/ASX 200 Index slipped 0.2%.

Spot gold gained 0.4% to $1,404.48 an ounce.

Energy stocks rose along with the price of crude oil. The unemployment rate is now near its lowest level in nearly five decades, and some analysts expect economic growth to slow from its first-quarter annual rate of 3.1% but remain stable. US gold futures climbed 0.6 percent to $1,408.90 an ounce.

Declining issues outnumbered advancing ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 2.30-to-1 ratio favored decliners.

At 9:41 a.m. ET, the Dow Jones Industrial Average was down 169.38 points, or 0.63%, at 26,752.74, and the S&P 500 was down 16.97 points, or 0.57%, at 2,973.44.

As traders' focus quickly shifted to Federal Reserve Chairman Jerome Powell's Congressional testimony, due Wednesday and Thursday this week, Chandler said it might be too late to persuade the market that the Fed will not cut rates now.

Yet U.S. Treasury debt yields fell, retreating from their gains on Friday in response to U.S. employment data.

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