(Bloomberg) — Global equities were set to hold onto record highs achieved Thursday as traders turned their attention to US jobs data for clues on Federal Reserve rate cuts.
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Equity futures for Japan fractionally climbed, following the benchmark Topix index’s fresh high on Thursday. Contracts for Australia and Hong Kong were largely flat Friday following an advance for European shares, led by French equities. US stock futures were also little changed in Asia after markets were closed Thursday for a holiday.
A gauge of global stocks was on track for its longest stretch of weekly gains since March. The moves have been driven by a series of soft US economic data which has revived hopes for a September rate cut.
Emerging market equities also benefited as the MSCI Emerging Markets Index rose to the highest level in two years.
An index of dollar strength steadied Friday after falling for a third day as developing-world currencies were broadly higher, led by the Bazilian real. The pound was little changed after a run of strengthening that began last week, as investors digested the prospect of a Labour Party victory in Thursday’s general election.
Exit polling data showed Keir Starmer’s Labour Party is projected to win with a huge majority, delivering a blow to Rishi Sunak’s governing Conservatives.
“Markets expect US employment to show a slight slowdown or stability. Any sign that the economy is cooling faster could be very positive for emerging currencies,” said Marco Oviedo a senior investment strategist at XP Investimentos in Sao Paulo.
France’s CAC 40 benchmark index advanced for a second day in the buildup to this weekend’s final round of voting in snap parliamentary elections. The gauge extended gains as polls suggested Marine Le Pen’s National Rally and its allies will fall well short of a majority.
In Asia, Australian and New Zealand yields were little changed early Friday. The yen was also steady after slightly strengthening in a rebound from the lowest level since 1986 reached on Wednesday.
Data releases in the region Friday…
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