TSX 60 Index (TXSX) Quote – Press Release
Stocks Set to Open Higher as Rate Cut Bets Firm, U.S. Jobs Data in Focus
In today’s trading session, speculation over interest rate cuts by major central banks has heightened appetite for risk-driven assets. The S&P 500 E-Mini futures are up +0.25%, and Nasdaq 100 E-Mini futures are up +0.37% this morning. Market participants are eagerly awaiting a fresh slew of U.S. labor market data, with a particular focus on Friday’s nonfarm payrolls report.
In Friday’s trading session, Wall Street’s major averages closed mixed. Caesars Entertainment surged over +11%, Zscaler climbed more than +8%, and Gap soared over +28% after posting upbeat Q1 results. However, MongoDB tumbled more than -23% after issuing soft Q2 guidance.
Data from the U.S. Department of Commerce on Friday showed that the U.S. core PCE price index came in line with expectations, while the U.S. Chicago PMI unexpectedly fell in May. U.S. rate futures have priced in a 0.1% chance of a 25 basis point rate cut at the Fed’s monetary policy committee meeting later this month.
The highlight of the upcoming week will be the U.S. Nonfarm Payrolls report for May, along with a spate of other economic data releases. Notable companies like CrowdStrike Holdings, Hewlett Packard, and Lululemon Athletica are scheduled to release their quarterly results this week.
Investor attention this week also centers on interest rate decisions in Europe and Canada. The European Central Bank and the Bank of Canada are widely anticipated to start reducing interest rates, potentially igniting monetary easing worldwide.
Today, all eyes are focused on the U.S. ISM Manufacturing PMI, with economists forecasting the May figure to be 49.8. U.S. Construction Spending data will also be reported today.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.481%, down -0.78%. The Euro Stoxx 50 futures are up +1.02% this morning, tracking gains in Asian stocks.
Asian stock markets settled mixed today, with China’s Shanghai Composite Index closing down -0.27% and Japan’s Nikkei 225 Stock Index closing up +1.13%. China’s manufacturing activity in May experienced its fastest growth in about two years, while Japan’s factory activity expanded for the first time in a year.
Overall, the market outlook remains optimistic as investors await key economic data releases and corporate earnings reports throughout the week. The focus will be on the impact of potential interest rate cuts and global monetary policy decisions on market dynamics.