European stock markets rose on the eve of an expected interest-rate cut by the European Central Bank (ECB), while Wall Street was mixed as investors digested data that could influence the Federal Reserve's own monetary policy. The Dow fell while the S&P 500 and Nasdaq rose after payroll firm ADP said job gains in the US private sector slowed again in May. Employers added 152,000 jobs last month due to a steep decline in manufacturing, down from a revised 188,000 figure in April and less than analysts anticipated. The Canadian central bank decided to slash its own rate to 4.75 percent. In European markets, London, Paris, and Frankfurt rose, with the ECB forecast to start cutting eurozone borrowing costs from historic highs on Thursday. Asian indices closed lower as optimism that the Fed would cut interest rates before the end of the year was eclipsed by resurfacing fears over the health of the US economy. Oil prices rose after recent hefty losses, as investors continue to digest the OPEC+ alliance of major crude producers' decision to begin winding back output cuts from October and through next year. Investor trepidation about a slowing U.S. economy is being offset by renewed interest rate cut hopes. Wall St stocks have turned around early losses to end higher by the close. U.S. job openings fell more than expected in April to the lowest in more than three years. Federal Reserve rate cut speculation is back on the boil. Bank of Canada is set to cut interest rates. European Central Bank rate cut also widely expected. Four of the G7 economies would then be in easing mode. Japanese and Chinese benchmark stocks were in the red on Wednesday. China markets were dragged lower by consumer and property shares. Indian shares recovered some of Tuesday’s losses. S&P500 futures were higher ahead of the opening. A group backed by BlackRock and Citadel Securities is planning to start a new national stock exchange in Texas. Key diary items: Bank of Canada policy decision, US May ADP private sector jobs report, US May service sector surveys from ISM and S&PGlobal, US President Joe Biden visits France for 80th D-Day anniversary, US corporate earnings: Dollar Tree, Lululemon, Campbell Soup, Brown-Forman. [ac0964c7] [93c1a0cd]
Short sellers profited from the housing market pain in Canada as the country became the first major economy to cut interest rates. The Canadian central bank decided to slash its own rate to 4.75 percent, easing concerns over the health of the US economy. This move comes as the US recession debate resurfaces, with fears over the declining manufacturing sector and job gains in the private sector slowing again in May. The housing market pain in Canada presented an opportunity for short sellers to profit. European stock markets rose on the expectation of an interest-rate cut by the European Central Bank (ECB), while Wall Street was mixed as investors analyzed data that could influence the Federal Reserve's monetary policy. The Dow fell, while the S&P 500 and Nasdaq rose after the payroll firm ADP reported lower job gains in the US private sector. Oil prices rose after recent losses, as investors digest the decision by major crude producers to begin winding back output cuts. [2384a40e]