Private businesses in the United States added 192,000 workers to their payrolls in April 2024, exceeding market expectations of a 175,000 increase and following a previous gain of 208,000. Hiring was broad-based, with the service-providing sector adding 145,000 jobs, led by leisure & hospitality (+56,000), trade, transportation & utilities (+26,000), education & health services (+26,000), professional & business services (+22,000), and financial activities (+16,000). Additionally, the goods-producing sector added 47,000 jobs, with boosts in construction (+35,000), manufacturing (+9,000), and natural resources & mining (+3,000). Meanwhile, annual pay for job-stayers was up 5.0% year-over-year in April, little-changed from the previous month. Pay growth for job-changers eased to 9.3% from March's 10.1%, but remained higher than it was at the beginning of the year.

Mortgage applications in the US fell by 2.3% from the previous week in the period ending April 26th, extending the two-month-high decline of 2.7% from the earlier week, according to data compiled by the MBA. The continued drop was in line with another fresh increase in mortgage rates (+5bps to a five-month high of 7.29%), as expectations that high inflation will force the Federal Reserve to maintain interest rates higher for longer triggered a sharp increase in long-dated Treasury yields. Applications to refinance a home fell by 3% from the earlier week, while applications for a mortgage to purchase a new home fell by 2%. In the meantime, elevated mortgage rates drove adjustable-rate mortgages to a total of 7.8% of total contracts in the week, the most this year.

US stock index futures declined Wednesday as investors processed disappointing corporate earnings reports and adopted a cautious stance ahead of the Fed's upcoming policy announcement. Futures linked to the S&P 500 were down 0.5%, Dow Jones futures fell 0.3%, and Nasdaq futures slipped 0.8%. Chipmakers faced downward pressure following AMD's uninspiring forecast for AI chip sales, compounded by Super Micro Computer's Q3 revenue falling short of expectations. Additionally, Starbucks revised its annual sales forecast downward after experiencing a decline in same-store sales for the first time in three years. Meanwhile, the US central bank is expected to maintain record-level borrowing costs amidst indications of stalling disinflation in the country, with investors eagerly awaiting Powell's remarks for insights into potential rate cuts later this year. Attention will also be on key economic data, including ADP national employment figures, ISM Manufacturing PMI, and JOLTS job openings.

London's FTSE 100 index edged up by 0.2% to 8,160 points on Wednesday amid subdued trading activity, remaining close to the recent record high of 8,200 points reached on Tuesday, as investors remained cautious as they awaited insights from the upcoming US Federal Reserve policy decision, particularly regarding potential rate adjustments later in the year. In corporate news, GSK revised its full-year profit forecast upwards and anticipated higher sales in the first half of 2024 compared to the latter half of the previous year. However, Aston Martin reported a larger-than-expected pretax loss for Q1, while Smith & Nephew fell short of market expectations for Q1 revenue. British retailer Next sustained its annual profit forecast following a 5.7% increase in Q1 full-price sales. Conversely, Domino's Pizza Group observed a slower start to the second quarter after reporting decreased sales and a decline in orders during Q1.

The Nationwide House Price Index in the United Kingdom rose 0.6% year-on-year in April 2024, slowing from a 1.6% growth in the previous month and compared to market forecast of 1.2% gain. It marked the third consecutive month of increase albeit the softest pace in the sequence, likely due to ongoing affordability challenges, compounded by a recent rise in longer-term interest rates, which have reversed the steep decline seen earlier in the year. A recent survey revealed that nearly half (49%) of prospective first-time buyers have postponed their plans in the past year. Among the top reasons cited for this delay, 53% pointed to excessively high house prices. Additionally, 41% identified increased mortgage costs as another significant obstacle to purchasing a home. On a monthly basis, prices were down 0.4%, slipping further from a 0.2% fall in March and missing market forecasts of a 0.2% rise.

WTI crude futures fell toward $81 per barrel on Wednesday, sliding for the third straight session as an industry report pointed to a sharp rebound in US crude stockpiles, while hopes for a ceasefire agreement in the Middle East continued to weigh on oil prices. API data showed that US crude inventories jumped by 4.906 million barrels last week after seeing a 3.23 million barrel drop in the preceding week, for the biggest gain since mid-March. The US EIA also said on Tuesday that US crude production rose to 13.15 million barrels per day in February from 12.58 bpd in January, the biggest monthly increase in about 3-½-years. In the Middle East, Egypt led efforts to revive stalled peace negotiations between Israel and Hamas, reducing risks of a wider conflict in the region. Elsewhere, investors turned cautious ahead of the US Federal Reserve’s policy decision amid fears that it would maintain higher interest rates for an extended period.