• Wall Street equities closed in the red on June 7, with the DJI fell by -0.22%, the S&P 500 edged down by -0.11%, and the Nasdaq declined by -0.23%.
• US stocks recovered from early losses and briefly moved higher on Friday morning before pulling back, with the S&P 500 and Nasdaq 100 achieving new record highs and the Dow reaching a 2-week high. The US May nonfarm payroll report provided support, as strong job data mitigated concerns of an economic slowdown impacting corporate profits.
• The 10-yr UST yields surged by +15.0 bps to 4.43%, while the 2-yr yields increased by 15.0bps to 4.87%. The Treasury yields spiked on Friday following a strong nonfarm payrolls report for May, sparking worries among investors that the Fed could delay rate cuts.
• The US nonfarm payrolls added a robust +272,000 jobs in May, exceeding expectations of +180,000. US average hourly earnings increased by +0.4% MoM and +4.1% YoY, surpassing expectations of +0.3% MoM and +3.9% YoY. However, the unemployment rate unexpectedly rose by +0.1 to 4.0%, versus expectations of no change at 3.9%.
• Meanwhile in Euro, the ECB's preferred wage measure, Eurozone Q1 compensation per employee, increased by +5.1% YoY, higher than the expected +4.6% YoY, and up from +4.9% YoY in Q4.
• In Asia, China's May exports grew by +7.6% YoY, exceeding expectations of +5.7% YoY. This marks the strongest export growth in four months and provides a positive signal for global trade.
• Global bond yields closed higher on Friday: the German bund yield rose by +7.1 bps to 2.62%, while the 10-yr UK gilt yield climbed by +8.7 bps to 4.26%, and the Japanese 10-yr JGB yield closed up by +1.2 bps to 0.98%.
