US job data in focus

Investors are also awaiting the US jobs report, which will be released on Friday. Experts expect fewer new non-farm jobs to be created in the US in May. Data from private data provider ADP on Wednesday also showed a decline, while initial jobless claims increased for the second consecutive week. "I don't think this is a serious warning sign yet, but it does show that the labor market is gradually weakening," said Kevin Gordon, strategist at financial services provider Charles Schwab. At the same time, investors hoped that weak jobs data could prompt the US Federal Reserve to cut interest rates, said Jim Reid of Deutsche Bank. The central bank is trying to curb high inflation and cool the overheated labor market by raising interest rates. "Yesterday's numbers weren't so bad that they reignited recession fears, and market participants didn't want to overvalue a single day of economic data," said Reid. "But they have led investors to now expect more interest rate cuts this year.