Premarket: Stock market rally pauses ahead of U.S. jobs data

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Markets were mostly moving sideways ahead of Friday’s U.S. non-farm payrolls report

Global stocks hovered at a record high on Friday after the European Central Bank cut interest rates for the first time in five years and traders waited on crucial U.S. monthly jobs data for clues about whether the Federal Reserve would soon follow.

Europe’s broad STOXX 600 share index, which traded flat in early trading on Friday, has gained 1.4 per cent this week and about 10 per cent year-to-date. Economists expect the world’s largest economy added 185,000 new jobs last a month, a relatively modest gain that traders will likely celebrate after data on Wednesday showed U.S. job openings fell to their lowest in more than three years in April.

Money market pricing implies traders see the Fed cutting rates from their 23-year high of 5.25-5.5 per cent by September, following a slew of similar moves across major economies. The benchmark 10-year U.S. Treasury yield, a benchmark for borrowing rates globally, was firm at 4.29 per cent. The two-year yield, which tracks interest rate expectations , was 2 basis points higher at 4.7421 per cent, after declining for six straight sessions until Thursday.

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