Though setting another record high close Wednesday, US equities struggled to post material gains, even though US data was largely upbeat, as traders prepared for a busy day in the data calendar Thursday.
"If US investors were hoping that yesterday's ADP employment report would be the catalyst that drove the Dow through 17,000, they would have been disappointed, as good though the number was, they had to settle instead for a record close, as opposed to new record highs," says
The report released by payroll processor ADP on Wednesday revealed that the US private sector employment added 281,000 jobs in June following an increase of 179,000 jobs in May. Economists had been expecting employment to climb by about 200,000 jobs.
The DJIA ended the day up 0.1% at a record high closing level of 16,976.24, the S&P 500 closed up 0.1% at a record high close of 1,974.62, while the NASDAQ Composite closed fractionally lower.
In data released overnight, the
In contrast, the latest survey from
"The expansion in the service sector reinforces the recovery seen in the manufacturing sector, and signaled a broad-based improvement over the month," said
Following the data, Asian stocks trade mixed. Ahead of the
There is still a raft of macroeconomic data scheduled to be released from around the world Thursday.
On the continent, the latest reading of the Italian Markit services PMI, which is released at
Eurozone retail sales data are due at
The central bank is expected to decide against any new action to help boost the struggling eurozone's economic fortunes as it sizes up the impact of the sweeping measures it unveiled four weeks ago. Analysts instead believe that Draghi could use his regular monthly press conference to unveil further details on the implementation of the complex battery of steps the bank set out in June.
However, since the bank's June meeting, a steady stream of key economic indicators has underlined the fragile state of the eurozone's economy. As a result, Draghi is also likely to be pressed by reporters on what additional steps the bank could take to shore up growth in the eurozone and to head off the threat of deflation choking off the region's recovery from recession.
With the US closed for the
Consensus expectations are for the print to reveal an addition of 213,000 jobs in all non-agricultural businesses in June, slightly lower than the 217,000 seen in May, according to FXStreet.com.
"Yesterday’s much stronger than expected ADP private payrolls outturn points to upside risks compared with our forecast of 215,000 for payrolls," says
Meanwhile, June's reading of
"Any volatility is likely to come from either the US employment report or the ECB press conference, with the rest of the data likely to be 'market noise'," says CMC's Hewson. "That doesn't mean that the data is unimportant, far from it, but from a policy point of view it’s not likely to have a lasting effect," he says.
In the forex market, ahead of the data slew, the pound trades at
In corporate news,
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