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European Stocks Rise Following US Labor Market Data Boosting Fed Rate Cut Expectations European stocks experienced an upswing after US labor market data strengthened expectations of Federal Reserve rate cuts. Following a negative session, the Stoxx 600 Index rebounded, recording significant gains of 0.4%. Retailers such as Inditex led the rise, climbing over 5% after a strong trading update. $ITX.MC (Industria de Diseno Textil SA) $HM-B.ST (Hennes & Mauritz AB, H & M ser. B) $GAP (Gap, Inc.) Economic data provided positive signals, with the Eurozone composite PMI increasing from 51.7 to 52.2, marking the strongest rise in economic activity since May 2023. However, the services PMI slightly decreased from 53.3 to 53.2. Investors are eagerly awaiting the European Central Bank's expected rate cut from a record high of 4% on Thursday, which could further fuel the rally in European stocks. $EUSTX50 $GER40 $FRA40 In the US, markets focused on new labor market data that intensified speculation about potential Federal Reserve rate cuts. The number of job openings reached its lowest level since 2021. Investors are keenly awaiting further key economic data, including private payroll figures and the latest readings on the services sector. S&P 500 futures slightly rose by 0.15% following gains yesterday, while Treasury yields edged up to 4.35% after a significant drop on Tuesday. Market sentiment remains cautiously optimistic as traders balance hopes for rate cuts with concerns about economic slowdown. $SPX500 $SPY $VOO $NSDQ100 $QQQ In Asia, stock markets showed a mixed picture. Indian markets outperformed their Asian counterparts, driven by political stability signals from Prime Minister Narendra Modi's coalition partner, pushing the Nifty 50 Index up by more than 2%. In Japan, the services PMI was revised upward to 53.8, indicating continued, slow growth. Nonetheless, the Nikkei 225 fell by 0.9% amid broader market declines. In China, stocks fluctuated, with May’s services activity expanding at the fastest pace in ten months. The Caixin services PMI rose to 54.0. Asian investors remain vigilant ahead of upcoming economic data from China and potential policy measures from the Shanghai forum. $INDA $CHINA50 $JPN225 In commodities, oil prices fell on Tuesday, influenced by reports of increased US crude stockpiles and demand concerns. WTI crude oil slightly recovered and remains stable at around $73.2 per barrel. Gold continued to show strength, rising to $2,335 per ounce, supported by lower yields, a weaker USD, and increased confidence in rate cuts this year. Similarly, Bitcoin also made progress, exceeding the $70,000 mark, driven by heightened rate cut bets, a weaker USD, and generally improved risk sentiment. $OIL $GOLD $BTC Conclusion Global markets are responding clearly to recent labor market data and the ensuing rate cut expectations. While Europe and the US are experiencing positive movements, the situation in Asia remains mixed. Developments in commodities and cryptocurrencies also reflect current economic uncertainties and hopes. Investors remain vigilant and react to every new signal that could influence the direction of monetary policy and economic recovery.

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