Global Stocks Reach New High Ahead of US Jobs Data

Global Stocks Reach New High Ahead of US Jobs Data

Global stocks have reached record highs, driven by soft U.S. economic data and expectations of potential Federal Reserve rate cuts. Tokyo's Topix index briefly touched a new record before retreating, while the MSCI Emerging Markets Index climbed to its highest level in two years. European markets saw gains, led by French equities, with France's CAC 40 benchmark index advancing for a second consecutive day.

The UK's Labour Party has secured a significant majority in the general election, bolstering investor confidence in the pound, which has seen a run of strengthening. Meanwhile, China's central bank has begun selling government bonds to counterbalance a record rally, asserting access to substantial yuan reserves through agreements with lenders. In the currency markets, the yen continued its recovery against the dollar, while developing-world currencies broadly appreciated.

Global equities are on track for their longest stretch of weekly gains since March, with equity futures in Japan and Australia showing slight increases. U.S. stock futures remained relatively unchanged after a holiday closure. Investors are now looking to upcoming U.S. jobs data for further insights into potential Federal Reserve actions. Key economic data releases include inflation figures from the Philippines, Thailand, and Taiwan, as well as household spending data from Japan and retail sales from Singapore.

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