Stock markets diverged and global bonds stabilised on Thursday as investors looked to US jobs data to cement rate-cut bets.

The latest weekly data released Thursday showed more first-time claims for unemployment benefits in the United States than analysts had expected, while figures from payroll firm ADP showed slowing private sector hiring in August.

Investors are now looking to US government data due out Friday amid hopes for further cuts to interest rates by the Federal Reserve.

"All eyes will be on Friday's nonfarm payrolls report with bad news likely to be interpreted as good news as it will raise the market probability that the Fed cuts rates," noted Victoria Scholar, head of investment at Interactive Investor.

David Morrison, senior market analyst at financial services provider

See Full Page