Europe Market Wrap
- Investors are preparing for the monthly US jobs report, which is likely to rekindle the recession discussion, as stocks in Europe and US share futures struggled to find direction. Bond yields and the dollar remained stable.
- Energy and media companies pushed down the Stoxx Europe 600 index, which declined. The NASDAQ stopped just shy of a 20 percent recovery from its June low, which would have met the technical criteria for a bull market. Contracts on the S&P 500 and NASDAQ 100 also erased an earlier gain to trade flat.
- In recovery from bear-market lows, a worldwide equity index is poised for a third weekly gain and is getting close to a two-month high, aided by tenacious US business profits. The longevity of the rebound is still in question as central banks around the world accelerate rate increases, and the inversion between the rates on two-year and 10-year bonds is still close to its worst level since 2000, signaling an impending recession.
- As a result of US House Speaker Nancy Pelosi's visit to Taiwan, China declared it would end cooperation with the US in a number of areas, including working-level discussions on military and climate change. Tensions between the two countries have been simmering for some time.