Markets Look For More Solid Footing, But Need To Get Past U.S. Jobs Data

Overview

The dramatic sell-off of US shares yesterday is the main focus, capturing the limelight from other forces, including today’s US employment report. It was the third-worst session for the S&P 500 since the March 23 bottom, and the other two did not see follow-through selling. Asia Pacific shares tumbled, led by Australia’s 3% plunge, while the Nikkei, Hang Seng, and Kospi fell over 1%. European bourses are firmed, recovering about a third of yesterday’s 1.4% decline. Materials, industrials, and financials are leading today’s efforts. US shares are steady to slightly firmer. The bond market lost a safe-haven bid, and yields are a little higher. The US benchmark is around 65 bp, down five basis points on the week. The dollar is narrowly mixed. The majors are +/- 0.25%, with the Canadian dollar and Norwegian krone on the strong side, and the Swiss franc and Swedish krona on the weak

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