Stocks jump, dollar falls and yields fall after US jobs market declines

NEW YORK (Reuters) – Global stock indexes rose sharply, the U.S. dollar fell to a six-week low and benchmark 10-year U.S. Treasury yields fell to a five-week low on Friday after data showed U.S. job growth slowed more than …expected in October.

Slowing job growth has confirmed views that the Federal Reserve may raise interest rates.

Two-year US bond yields were also the lowest since early September after the data showed US job growth slowing in part, as strikes organized by the United Auto Workers union against the “Big Three” automakers in Detroit led to a decline in sector payrolls. Manufacturing.

The data also showed that the annual wage increase was the lowest in about two and a half years, indicating a deterioration in labor market conditions.

“The good news here is that the slowdown is likely to keep the Fed on the sidelines going forward,” said Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts.

“One of their main concerns was the overheating economy, especially after last quarter’s GDP growth, and this suggests the problem will go away.”

The US central bank’s decision on Wednesday to leave interest rates unchanged and comments from Federal Reserve Chairman Jerome Powell signaled to some investors that the Fed may be done raising interest rates. The Bank of England on Thursday also left interest rates unchanged.

However, central bank officials stressed that more efforts may be needed to tackle inflation.

Benchmark 10-year yields fell to 4.527%, the lowest level since September 29. Two-year bond yields reached 4.847%, the lowest level since September 1.

The US Treasury Department’s decision on Wednesday to issue less long-term debt than expected also fueled a bond rally, as did data released on Thursday suggesting the US economy may finally be slowing.

The Dow Jones Industrial Average rose 307.85 points, or 0.91%, to 34,146.93 points, the Standard & Poor’s 500 Index rose 55.68 points, or 1.29%, to 4,373.46 points, and the Nasdaq Composite Index rose 225.03 points, or . 1.69% to 13519.22.

Bucking the broader market trend, Apple shares fell 0.9%, a day after the company reported quarterly results and warned of a dull holiday quarter.

The European STOXX 600 Index (.STOXX) rose 0.17%, and the MSCI Worldwide Stock Index (.MIWD00000PUS) rose 1.44%.

The US dollar index fell to its lowest level in six weeks after the jobs data. In afternoon trading, the dollar index fell by 1.111%, while the euro rose by 1.07% to reach $1.0734.

The Japanese yen was up 0.72% against the dollar at 149.31 to the dollar, while the British pound was last trading at $1.2379, up 1.46% on the day.

In commodities, oil prices ended lower, with the geopolitical risk premium falling.

The settlement price for Brent crude futures contracts was set at $84.89 per barrel, while US crude futures contracts fell by $1.95 to reach $80.51 upon settlement.

Gold in spot transactions increased 0.4 percent to $1,994.31 per ounce.

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