European stock futures advanced as signs of a cooling US labor market buoyed Federal Reserve rate-cut bets.
Treasury yields climbed after their largest two-day drop this year. The Euro Stoxx 50 futures gained 0.5% while contracts for US equities also edged higher.
Stocks in Asia were mixed, with India outperforming as an alliance partner of Prime Minister Narendra Modi’s party affirmed support to form a coalition government.
The Nifty 50 Index rose more than 2%, recouping some of Tuesday’s loss when the gauge fell the most in four years.
Australian and Japanese notes rose after US data showed job openings hit the lowest since 2021, reinforcing speculation that the Fed will be able to lower rates this year.
The 10-year Treasury yield advanced two basis points to 4.35% after sliding six basis points on Tuesday.
“Asian markets remain in the ‘direction-seeking’ mode today but with no shortage of spotlight markets,” said Hebe Chen, market analyst at IG Markets Ltd. “The ripple effect of political noise in India throughout the financial world will be closely monitored in the stock market.” A Bloomberg gauge of dollar strength was little changed after eking out gains in the past two sessions.
