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Asia shares dazed by trade uncertainty, US jobs risks via SABCNewsOnline

Japan’s Nikkei firmed 0.3%, but South Korea slipped 0.5%. E-Mini futures for the S&P 500 were mostly flat.

Market forecasts are for jobs to rise a solid 185,000 in May and unemployment to stay at a low 3.6%, though much was in doubt after dismal data on private hiring released earlier in the week. Oddly, a weak number might actually prove positive for equities since it would bolster the case for an early rate cut from the Federal Reserve.Two-year Treasury yields were near their lowest since December 2017 at 1.88%, having fallen 28 basis points in just two weeks.That seismic shift in Fed expectations has hampered the US dollar, which was currently down 0.7% for the week so far against a basket of currencies at 97.020.

The single currency bounced sharply overnight after the European Central Bank pushed back the timing of any rate hike, but failed to canvass the policy easing that many had wagered on. “The risk is that once the ECB realizes things are really bad, it will find itself well behind the curve.”

 

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