(CercleFinance.com) – Wall Street should open slightly higher on Thursday morning, while Jerome Powell’s latest comments have reinforced the prospect of future rate cuts on the eve of employment figures.
Half an hour before the opening, futures contracts on the main New York indices advanced from 0.5% to 0.8%, announcing a green start to the session.
Caution could, however, limit risk-taking while awaiting employment statistics in the United States for the month of March, which will be released tomorrow.
The consensus is for a clear slowdown in job creation to 200,000, compared to 275,000 in February.
This morning, the market took note of an increase in unemployment claims, to 221,000 last week, compared to 212,000 the previous week, a sign of a slight easing of the labor market.
The ADP survey on job creation in the private sector, published yesterday, had on the contrary shown that tensions on the job market were struggling to be resolved.
In order to form a definitive opinion, investors will carefully follow tomorrow’s official report from the Department of Labor, which could well influence the Federal Reserve’s next decisions.
After the reassuring remarks made yesterday by the President of the Fed, investors are counting with a probability of almost 62% on a first drop in the cost of credit in June, according to the CME Fedwatch barometer.
During a speech on Wednesday at Stanford University (California), the head of the central bank confirmed that ‘if the economy continues to evolve overall as we expect, most members of the FOMC believe that it It will probably be appropriate to start lowering policy rates at some point this year.’
Following these statements, the yield on ten-year US Treasury bonds fell slightly before rising again, above 4.37%, still at levels close to a four-month peak.
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