Stock market rally pauses as US jobs data looms

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Global stock markets are currently in a wait-and-see mode, with investors closely monitoring the upcoming US jobs report. This report is expected to influence the Federal Reserve’s decision on interest rates.

The report, due out on Friday, is anticipated to show a modest increase in jobs, potentially supporting the idea that the labor market is softening and inflation may decline. However, a significant deviation from expectations could disrupt the current market rally.

Financial markets are currently reflecting the anticipation of a Fed rate cut by September, following similar actions by other major central banks. The European Central Bank recently cut its deposit rate, and Canada also reduced its key policy rate.

The US Treasury yield has risen slightly after falling in recent weeks. The Eurozone bond market is showing little change, with investors awaiting further signals from the ECB. The dollar remains weak against a basket of currencies.

Source: Reuters

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