Global shares gain, bonds supported as oil drops ahead of US jobs data
SPY•Global shares rose as oil prices fell ahead of US jobs data, with the STOXX 600 up 0.8% and US futures higher. Germany’s 10-year yield fell 10 basis points, while the French-German yield gap widened to more than 150 basis points.
1. Shares rise, oil falls
Global shares rose on Friday as volatility in bond and currency markets eased and oil prices fell ahead of US jobs data. WTI crude dropped 3.8% to $89.34 a barrel, while Brent fell 2.5% to below $100.
2. European bond strains
German 10-year bond yields fell 10 basis points. France’s 10-year yield was little changed at 4.939%, widening the gap with Germany to more than 150 basis points, its widest since the euro zone debt crisis in 2011. George Lagarias of Forvis Mazars said the situation had the potential to become a crisis if it continued for a couple more weeks.
3. Jobs data in focus
Forecasts were centered on a September gain of 90,000 US nonfarm payrolls, with unemployment expected to remain at 4.1%. A strong report could revive bets on a Federal Reserve rate increase this month; the article put those odds at 25%. The STOXX 600 rose 0.8%, while Nasdaq and S&P 500 futures gained 0.7% and 0.5%, respectively.
