Global shares rise as bond selloff eases before US jobs
SPY•Global shares rose as bond-market volatility eased ahead of US jobs data, with the STOXX 600 up 0.8% and US stock futures higher. Investors forecast 90,000 September payroll gains, while euro zone bond yields fell after hitting multi-year highs.
1. Shares rise ahead of jobs data
Global shares rose on Friday as volatility in bond and currency markets eased ahead of US jobs data that could shape expectations for the Federal Reserve's next policy move. Europe's STOXX 600 gained 0.8%, Nasdaq futures rose 0.7% and S&P 500 futures gained 0.4%.
2. Bond yields and fiscal concerns
Longer-dated euro zone bond prices rose, though French and Italian bonds lagged Germany's. Germany's 10-year yield fell 6.5 basis points, while France's 10-year yield was down 4 basis points at 4.892%; the gap between the German and French yields reached 149 basis points, its widest since the 2012 euro zone debt crisis. One economist said the situation had the potential to become a crisis if it continued for a couple more weeks.
3. Jobs forecasts and currencies
Forecasts center on 90,000 US nonfarm payroll gains in September, with unemployment expected to hold at 4.1%. A stronger-than-expected report could revive bets on a second Federal Reserve rate rise this month, currently priced at 25%. The euro was at $1.1257 after falling 0.8% on Thursday, while oil prices fell 3.4% for US WTI crude to $89.69 a barrel and 2.3% for Brent to about $100.
