Global Markets See Mixed Results Amid Economic Uncertainties

European and Asian markets showed mixed results following a global sell-off. Various indices experienced slight gains or losses, with Japan's wage growth and US job openings impacting investor sentiment. The Federal Reserve's response to these economic indicators may influence future interest rate cuts. Oil prices saw modest gains, while bond yields declined.

European and Asian markets displayed mixed results on Thursday following a global sell-off the previous day, with Wall Street experiencing declines across technology, energy, and other sectors.

France's CAC 40 shed 0.1% in early trading to 7,496.01, while Germany's DAX gained 0.3% to 18,647.33. Britain's FTSE 100 edged up 0.1% to 8,279.76. Futures for the S&P 500 and the Dow Jones Industrial Average both rose 0.1%.

Japan's benchmark Nikkei 225 slipped 1.1%, closing at 36,657.09. Data released Thursday indicated strong wage growth in Japan, with average cash earnings in July up 3.6% year-on-year and real earnings rising by 0.4%, heightening the chances of another rate hike.

The US dollar traded at 143.63 Japanese yen, buoyed by the robust data. "If global markets remain in risk-off mode—especially with commodities like oil tanking—the Fed could be pressured to pull the trigger on a larger 50-basis-points cut," said Stephen Innes of SPI Asset Management.

In South Korea, the Kospi dropped 0.2% to 2,575.50 due to a 0.2% contraction in the country's economy in the second quarter. Hong Kong's Hang Seng declined 0.1% to 17,444.30, while the Shanghai Composite index rose 0.1% to 2,788.31. Australia's S&P/ASX 200 gained 0.4% to 7,982.40.

On Wednesday, the S&P 500 fell 0.2% to 5,520.07, while the Nasdaq composite declined 0.3% to 17,084.30. The Dow Jones Industrial Average managed a 0.1% gain, closing at 40,974.97.

The market's pullback followed a government report indicating a drop in US job openings to 7.7 million in July, down from 7.9 million in June, the lowest since January 2021. However, hiring increased last month.

This week's economic reports will offer more clarity for the Federal Reserve and Wall Street. The Institute for Supply Management will release its services sector index for August on Thursday. The US monthly jobs report for August, expected to show 160,000 new jobs and a slight dip in the unemployment rate, will be released on Friday.

Traders predict the Fed will reduce its benchmark rate by 1% by the end of 2024, potentially requiring more substantial cuts soon. In the bond market, the yield on the 10-year Treasury fell to 3.76%, and the yield on the 2-year Treasury fell to 3.76%.

In energy trading, US benchmark crude rose 49 cents to $69.69 a barrel, while Brent crude increased 58 cents to $73.28 a barrel. In currency trading, the euro marginally increased to $1.1096.

(With inputs from agencies.)