(Bloomberg) — European stocks declined and bonds yields edged higher on Friday as investors awaited key US jobs data to gauge the timing and pace of the Federal Reserve’s interest rate cuts.
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The Stoxx 600 fell 0.6%, on track to end a seven-week run of gains. US futures also slipped. The yield on 10-year US Treasuries was one basis point higher at 4.01%, while the dollar was set for its longest winning streak since September.
Friday’s nonfarm payrolls data is expected to be strong, underscoring concern the market has been over-optimistic on Fed cuts and potentially worsening the retreat seen so far this year. Yields climbed on Thursday and traders pushed back their expectations for when the Fed will pivot to reducing rates after strong US private jobs data.
“In the lead-up to the upcoming US job numbers, sentiment is back to wait-and-see,” said Jun Rong Yeap, a strategist at IG Asia. “We may have to…
