US equities rallied into the close, settling 0.2% lower after having been down as much as 1.6% earlier in the session. Materials and Technology were among the best performing sectors on the day.
US-Chinese trade talks came back into focus yesterday – Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer are among US officials participating in the trade meetings with China.
Attention today will turn to the health of the US economy, with jobs data and wage growth due to be released. Consensus is expecting the US economy to have added ~190,000 jobs last month and for the unemployment rate to have dropped to 4.0%
European equities closed lower yesterday as markets assessed inflation data and the prospect of trade talks between the US and China. The Euro Stoxx 50 index fell 0.7%, the German DAX index lost 0.9% and the French CAC settled 0.5% lower.
On the data front, euro zone inflation unexpectedly declined in April, raising questions about the European Central Bank’s plan to scale back its stimulus program.
Japanese markets are closed again today for a public holiday.
Elsewhere, Asian markets settled marginally lower ahead of the release of the US jobs report.