Stocks up, dollar on losing streak as investors count on Fed rate cut

Global shares edged up on Thursday, powered by expectations that a US rate cut next week will support the world’s largest economy after a raft of data showed employment is slowing, while the dollar fell for a tenth straight day against a basket of currencies, set for its longest losing streak in over 50 years.

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Japanese stocks rallied sharply after an auction of government bonds drew strong demand from investors, which helped set the tone for the broader equity market. In Europe, the STOXX 600 was up 0.18 and still headed for a modest weekly gain. US stock futures were slightly positive on the day, suggesting a steady start to trading later on, following Wednesday's rally that was led by the small-cap Russell 2000 index, which jumped 1.98, while the S&P 500 rose for a second day.

The gains came after US private payrolls data posted their biggest drop in more than two-and-a-half years, and following a survey of the services sector that showed activity held steady in November while hiring slowed.

Fed funds futures are pricing a near-908 chance of a quarter-point cut at the US central bank’s next meeting on December 10, compared with an 83.48 chance a week ago, according to the CME Group's FedWatch tool.

The dollar index, which tracks the US currency's performance against six others, was last down 0.05% on the day, heading for a tenth straight daily decline, making this its longest stretch of losses since at least 1971, according to LSEG data.