“We had stocks make a miraculous recovery from their March 23 lows and so it makes sense that we’re unlikely to see the rally continue at the pace it has,” said Kristina Hooper, chief global market strategist at Invesco. “We’re probably going to see more of a plateauing, more of trading in a range until there’s a catalyst that moves them forward.”
Global stocks have edged back from their highest since early March after the recent rally left valuations at the most expensive in nearly two decades and pushed technical levels toward overbought levels. Investors are awaiting plans for the next round of U.S. economic stimulus, but Trump administration officials have postponed discussions scheduled for this week, according to people familiar with the matter.
Elsewhere, West Texas oil edger lower amid the long-running feud over compliance with production cutbacks.
Here are some key events coming up:
- The U.S. labor market report on Friday will probably show American unemployment soared to 19.5% in May, the highest since the 1930s.
Here are the major moves in markets:
- S&P 500 futures were little changed as of 10:22 a.m. in Tokyo. The index fell 0.3% Thursday.
- Japan’s Topix index dipped 0.3%.
- Hong Kong’s Hang Seng was little changed.
- Shanghai Composite slipped 0.2%.
- South Korea’s Kospi index added 0.6%.
- Australia’s S&P/ASX 200 Index was little changed.
- Euro Stoxx 50 futures were up 0.2%.
- The euro was at $1.1333, little changed.
- The yen traded at 109.15 per dollar.
- The offshore yuan held at 7.1135 per dollar.
- The yield on 10-year Treasuries slipped to 0.81%.
- Australia’s 10-year yield rose four basis points to 1.06%.
- WTI crude dropped 0.3% to $37.30 a barrel.
- Gold was at $1,712 an ounce, little changed.