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European shares tracked Asian shares higher on Tuesday, as Beijing’s latest efforts to shore up markets boosted China-linked sectors, while investors braced for U.S. labor market data due later in the day.
In Europe, the Stoxx Europe 600 rose 0.6 percent after gains in the previous session, while France’s Cac 40 rose 0.2 percent and Germany’s Dax rose 0.3 percent. London’s FTSE 100 rose 1.3% as markets reopened after the bank holiday.
Basic materials stocks led gains, with the Stoxx Europe 600 Basic Resources index up 1.6%, as traders hoped new economic support measures announced by China over the weekend would boost demand in the world’s second-largest economy.
Chinese authorities on Sunday announced their decision to cut taxes on stock transactions for the first time since the 2008 financial crisis to support the country’s struggling market.
China’s CSI 300 index rose 1%. The index rose 1.2% on Monday after paring sharp gains in early trading. Elsewhere in Asia, Japan’s Topix rose 0.2 percent and South Korea’s Kospi gained 0.3 percent.
Investors, meanwhile, turned their attention to the latest U.S. labor market data, which is expected later in the day to show the number of jobs created fell by 117,000 to 9.5 million in July, suggesting that high interest rates are weighing on interest rates. labor market needs. Worker.
The data came ahead of Friday’s closely watched U.S. non-farm payrolls report, which has been one of the key indicators for the Fed’s policy decisions as the historic monetary tightening cycle draws to a close.
After raising interest rates to a 22-year high at its last policy meeting in July, the Federal Reserve said last week that its future decisions would depend on data, adding to the momentum for upcoming reports on inflation and the labor market ahead of the central bank’s next meeting. Additional weights in September.
The US personal consumption expenditures price index, the Fed’s preferred measure of inflation, is also due later in the week.
The yield on the policy-sensitive two-year Treasury note fell 0.02 percentage point to 4.99%, while the yield on the benchmark 10-year note fell by the same amount to 4.19%. Bond yields fall as prices rise.
The dollar, which tends to fall when investors expect lower interest rates, was down 0.1% against a basket of six peers.
U.S. futures contracts tracking the benchmark S&P 500 rose 0.1%, while those tracking the tech-heavy Nasdaq 100 rose 0.2% ahead of the New York open.
