European and US equity markets were poised for a modest recovery Monday, after a selloff triggered by cooling US jobs data that also sent Asia’s benchmark stock index to a three-week low.
Futures for the Standard & Poor’s 500 Index and Euro Stoxx 50 Index both advanced after the underlying gauges slid Friday following weaker-than-forecast US payrolls numbers.
The data left economists and traders at odds as to how aggressively the Federal Reserve will cut interest rates. Shares in Asia caught up with Friday’s global losses with equities from Taiwan to Australia sliding on fears that global growth is slowing.
Japan’s Nikkei 225 Stock Average dropped for a fifth day, while iron ore sank below $90 a ton for the first time since 2022.
While a September Fed cut is essentially a done deal, “the question of course is how many and what size the cuts will be later on,” Louis Kuijs, Asia-Pacific chief economist at S&P Global in Hong Kong, said in an interview on Bloomberg Television “There are lots of risks across the global economy,” which matters to the Fed, he said.
