Global shares gain as oil drops and jobs data misses expectations
SPY•Global shares rose and bonds gained as oil prices fell and U.S. payroll growth of 29,000 missed expectations for 90,000. Markets priced a 15% chance of a Federal Reserve rate hike in October, down from about 25% before the report.
1. Jobs data shifts rate bets
U.S. nonfarm payrolls rose by 29,000 last month after a downwardly revised increase of 133,000 in August, below economists’ forecast of 90,000. Markets’ perceived chance of a Federal Reserve rate hike in October fell to 15% from about 25% before the data, while a December move remained fully priced in.
2. Stocks and bonds rise
Wall Street futures gained after the report, with Nasdaq futures up 1.2% and S&P 500 futures up 0.8%. The 10-year U.S. Treasury yield fell 6 basis points to 5.1717%, while the 10-year German yield fell 12 basis points. The STOXX 600 rose 0.8%.
3. Oil prices fall
U.S. crude futures fell 3.7% to $89.43 a barrel and Brent declined 2.7% to $99.45. Asia-Pacific shares outside Japan fell 0.1%, while the Nikkei dropped 0.9%.
