European futures edged up by 0.2% on Thursday, showing resilience despite a pullback in Asian markets, as investors positioned themselves ahead of critical U.S. payroll data and insights from the Federal Reserve’s upcoming meeting minutes. The slight uptick in European futures contrasts with a decline in Asian stocks, particularly in Hong Kong, where Chinese tech shares faced headwinds.
The sell-off in Asia was led by concerns over China’s consumption outlook, exacerbated by Walmart Inc.’s decision to sell its stake in JD.com Inc. and disappointing earnings reports from key tech companies like Kuaishou Technology. These developments broke a three-day winning streak for Asian stocks, highlighting the region’s sensitivity to shifts in both domestic economic conditions and corporate performance.
Meanwhile, contracts for U.S. shares also ticked higher, indicating cautious optimism among investors ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole symposium. Markets are keenly awaiting any signals on the timing and scale of potential interest rate cuts, which could have significant implications for global financial markets.
The U.S. dollar steadied after three days of declines, with the Bloomberg Dollar Spot Index ticking up slightly. Investors are watching the currency closely, particularly as the Thai baht reached its highest level since July 2023 ahead of a key central bank decision in Thailand.
In Japan, stock markets declined despite positive export data, as the yen’s strengthening raised concerns about the impact on corporate earnings. The mixed performance across global markets underscores the uncertainty that continues to loom over investors as they navigate a complex landscape of economic indicators and geopolitical risks.
