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REFILE-Global stock index, Treasury yields fall after combined United States jobs report

MSCI'S worldwide equities evaluate lost ground on Friday and U.S. Treasury yields fell after a combined U.S. tasks report sealed expectations for the Federal Reserve to lower interest rate this month, however left financiers unsure about the size of the cut.

The Labor Department reported that U.S. work increased less than expected in August while the unemployed rate dropped in line with expectations to 4.2% from 4.3% in July, recommending an organized slowdown.

Non-farm payrolls rose by 142,000 in August, short of the 160,000 development financial experts polled had anticipated while July numbers were modified down to 89,000 from 114,000.

It simply appears like things are decreasing a bit, not like something cataclysmic impends, said Matt Rowe, head of portfolio management, cross possession techniques at Nomura Capital Management in New York. What the marketplace's going to get out of this is clear cover for the Fed to be cutting rates and a course to cutting rates more than once.

After the report, traders bet on a 63% probability that the Fed would cut rates by 25 basis points this month versus 60% on Thursday, while bets on a 50 basis point cut edged down to 37%. from 40% the day before, CME Group's FedWatch tool revealed.

Federal Reserve Bank of New York City President John Williams. said on Friday he favors cutting rates but was not inclined to. provide a view on how big the Fed's very first move need to be.

Wall Street indexes opened higher after the news however. slowly decreased into the late morning.

At 11:39 a.m. ET, the Dow Jones Industrial Average. fell 337.59 points, or 0.83%, to 40,418.16, the S&P 500. lost 80.87 points, or 1.47%, at 5,422.55 and the Nasdaq. Composite dropped 392.48 points, or 2.29%, to 16,735.18.

MSCI's gauge of stocks across the globe fell. 9.39 points, or 1.16%, to 803.28 while Europe's STOXX 600. index fell 1.15%.

Germany's DAX index fell 1.4% after data revealed the. country's commercial production fell 2.4% in July, compared to. expert expectations for a 0.3% drop.

In the bond market, benchmark 10-year Treasury yields were. down after the payrolls report however came off of a 15-month low.

The marketplace's really having problem with this one because it's. actually in the middle of what might be utilized as a justification. for either a 25 or 50 basis point rate cut, stated Gennadiy. Goldberg, head of U.S. rates technique at TD Securities in New. York.

The yield on benchmark U.S. 10-year notes fell. 4.9 basis indicate 3.684%, from 3.733% late on Thursday.

The 2-year note yield, which generally moves. in step with rate of interest expectations, fell 7.7 basis points. to 3.6751% from 3.752% late on Thursday.

A closely watched part of the U.S. Treasury yield curve. determining the space in between 2- and 10-year Treasury notes. , viewed as an indication of economic expectations, was. at a positive 0.7 basis points.

In currencies, the dollar index edged up in unstable trading. with focus on the stable downturn in the labor market suggesting. more rate cuts after September.

A half-point rate cut at the central bank's September. meeting remains unlikely, but today's release provided clear. evidence of a sharp deterioration in labor market basics,. and will strengthen bets on a minimum of one jumbo-sized rate cut in. the coming months, stated Karl Schamotta, primary market strategist. at payments company Corpay in Toronto.

The dollar index, which measures the greenback. against a basket of currencies including the yen and the euro,. acquired 0.09% at 101.13.

The euro was down 0.17% at $1.1092 however against. the Japanese yen, the dollar weakened 0.77% to 142.34.

In energy markets, oil prices lost ground after the payrolls. report and were on track for a steep weekly loss as demand. concerns exceeded delayed supply boosts by OPEC+ producers.

U.S. crude lost 1.63% at $68.02 a barrel and Brent. fell to $71.5 per barrel, down 1.64% on the day.

In rare-earth elements, gold rates relieved from near-record. levels earlier in the session.

Spot gold dropped 0.25% to $2,510.13 an ounce. U.S. gold futures fell 0.13% to $2,508.10 an ounce.

(source: Reuters)