Wall Street ran off a session high and finished lower on a cautious move ahead of the September non-farm payroll data release, which is expected to add 170,000 new jobs in September and would be under 200,000 for a third consecutive month. However, stronger-than-expected employment data may drive the bond yields higher and hit the stock markets again. At the same time, a sharp decline in crude oil prices could continue to provide investors with a reprieve as the VIX showed signs of retreating from a six-month high.
Mirroring the movement of the US Treasury yields, the US dollar weakened against the other major currencies for the second straight trading day. Notably, the commodity currencies, such as the Australian dollar and the New Zealand dollar, rebounded sharply against the dollar, signalling a recovery in risk appetite.
Most Asian markets are set to open higher, except for Japan. The Nikkei 225 futures were down 0.14%, the ASX 200 futures rose 0.07%, and Hang Seng Index futures were up 0.39%.
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