Global markets-US stocks, bonds rally after soft jobs report; yen bounces back

Treasury yields fell after the soft jobs report. The 2-year note US2YT=RR yield fell 7 basis points to 4.176%, while the 10-year yield US10YT=RR dropped 5 basis points to 4.61%. The U.S. currency slipped alongside rate expectations, pushing the dollar index =USD down 0.5% to 99.43 and lifting the yen. Gold moved inversely to the dollar, rising to its highest in around six weeks this week while the U.S. currency hovered near six-week lows. Bullion has gained nearly 7% this week, its strongest weekly performance since mid-January, when it hit a record $5,594. It was last up 2% at $4,322 an ounce. Conflict in the Middle East flared up again after Yemen's Iran-aligned Houthis attacked Saudi Arabia, a major oil exporter. Riyadh warned that coordinated attacks by the Houthis and Iran-backed Iraqi militias were imminent. Brent crude futures LCOc1 reversed course on Friday to fall 0.7% to around $82 a barrel, as investors largely shrugged off Saudi Arabia's warnings. Iran, meanwhile, is reviewing a preliminary bill that would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz, Iran's semi-official Fars news agency reported on Thursday, citing a lawmaker. The draft bill would impose fines of up to 20% of a ship's cargo value for violations. The U.S. payroll report showed employment fell by 23,000 jobs, confounding expectations in a Reuters poll for an increase of 80,000. Analysts said the data gave the Fed more room to keep rates unchanged next month while assessing upcoming economic indicators, including next week's U.S. inflation report. "History doesn't repeat, but sometimes it rhymes," said Lindsay Rosner, head of multi-sector fixed-income investing at Goldman Sachs Asset Management in New York. "For the third time in as many years, July jobs data saw a mid-summer loss of momentum. While incoming inflation data will be the ultimate arbiter, slowing jobs growth helps support a September hold." Money markets had been evenly divided on the prospects of a Fed rate increase next month before the payrolls report. After the data, the implied probability of a hike fell to about 40% from roughly 55% earlier. 0#USDIRPR "With yields and inflation still the key risks for stocks, we expect Friday's NFP to trade as a 'good news is bad news' print," said Michael Feroli, chief U.S. economist at JPMorgan. Global stocks headed for their strongest weekly gain since May after a weaker-than-expected U.S. jobs report eased fears of an imminent Federal Reserve rate hike, while strong earnings and AI enthusiasm outweighed concerns about the Iran war. U.S. stocks opened higher on Friday and Treasury yields fell, reflecting ebbing expectations that the Fed will raise rates at next month's meeting. The Nasdaq .IXIC rose 0.7% in early trading and the dollar fell, giving the Japanese yen =JPY a reprieve. The yen strengthened to 157.20 per dollar after earlier nearing 159, a level widely seen as a potential trigger for policy intervention. MSCI's All-World index ..MIWD00000PUS has risen 2.4% this week, the most in three months, and was steady on Friday. Europe's STOXX 600 .STOXX was up 0.6% on the day and 2% for the week, led by gains in healthcare and technology shares.

Global markets-US stocks, bonds rally after soft jobs report; yen bounces back

Treasury yields, dollar and gold

Middle East tensions and oil prices

Payrolls miss strengthens case for Fed hold

Stocks, bonds and yen react to weak U.S. jobs data

Related News

Columbia Seligman Premium Technology Growth Fund declares USD 0.4625 Q3 distribution per share

Euro zone bond yields slip after US economy sheds jobs in July

Morgan Stanley hires BofA's Kweskin to cover diversified industries

What is the Patriot missile system and why are supplies depleted worldwide?

US FDA to hold advisory meeting to review Grail's multi-cancer test