June 2, 2023
United States:
Yields Rise as Traders Bet on One Fed Hike by July: Markets Wrap
Treasury yields climbed as a solid jobs report bolstered bets the Federal Reserve will have room for one more interest-rate hike by July. Stocks rose on speculation the economy is strong despite aggressive policy tightening.
The amount of tightening priced in by swaps linked to the next two Fed meetings edged up, with traders projecting officials will most likely wait until next month to tighten again. Two-year US rates advanced six basis points to 4.4%, paring an increase of as much as 11 basis points. Gains in the S&P 500 drove the benchmark measure toward its third straight week of gains — the longest winning streak since March.
https://www.bloomberg.com/news/articles/2023-06-01/stock-market-today-dow-s-p-live-updates
Europe:
European Stocks Rally on China Stimulus, Mixed US Jobs Report
European stocks rallied for a second day after Bloomberg reported that China is working on measures to support its ailing real estate sector. Friday’s US jobs report sent conflicting signals as payrolls surged along with joblessness, potentially giving the Federal Reserve scope to pause interest-rate hikes.
The Stoxx Europe 600 rose 1.2% by 2:07 p.m. in London. Beaten-down mining shares were among the top gainers alongside real estate stocks, boosted by China’s property plan, while telecoms and utilities underperformed.
Asia:
China Mulls New Property Support Package to Boost Economy
China is working on a new basket of measures to support the property market after existing policies failed to sustain a rebound in the ailing sector, according to people familiar with the matter.
Regulators are considering reducing the down payment in some non-core neighborhoods of major cities, lowering agent commissions on transactions, and further relaxing restrictions for residential purchases under the guidance of the State Council, the people said, asking not to be named because the matter is private.
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