Equities on Front Foot as US Data Feeds Rate-Cut Hopes
- Asian shares mostly rose on June 5, 2025, as soft US economic data fueled expectations of imminent Federal Reserve interest rate cuts.
- This optimism followed reports of a sharp slowdown in private-sector job growth to 37,000 in May, less than a third of forecasts, and contraction in the US services sector.
- Additional context highlighted the Fed's Beige Book reporting a slight downturn in economic activity, increased market speculation about potential rate reductions, and growing attention on the forthcoming key US employment figures.
- Chris Beauchamp, IG's chief market analyst, noted that despite tariffs continuing to be a significant concern, rising markets suggest traders believe the US is unlikely to enforce tariffs as aggressively as it did in April.
- The developments suggest market caution persists amid trade uncertainties and economic caution, leaving investors open to potential volatility and further Federal Reserve easing this year.
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Most Asian markets rise as US data feed rate-cut hopes
HONG KONG, China – Asian shares mostly rose Thursday after soft US economic data boosted expectations the Federal Reserve will soon cut interest rates and put the focus on key jobs figures coming at the end of the week. Investors were also keeping track of developments in Donald Trump’s trade war and signs of movement
·Manila, Philippines
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Equities on front foot as US data feeds rate-cut hopes
Shares enjoyed a healthy run Thursday after soft US economic data boosted expectations the Federal Reserve will soon cut interest rates and put the focus on key jobs figures coming at the end of the week.
·Missoula, United States
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Leaning Left6Leaning Right4Center7Last UpdatedBias Distribution41% Center
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