Stocks upbeat, dollar wobbles as Fed hike bets recede
TLT•Stocks rose and the dollar slipped as cooler-than-expected US jobs data reduced the market-implied chance of a Federal Reserve rate hike this month to 22%, from 64% a week earlier. US Treasury yields edged lower.
1. Markets respond to jobs data
Stocks started Monday higher while the dollar edged lower and bonds steadied, as investors trimmed bets on aggressive Federal Reserve tightening after US job growth slowed more than expected in September and payrolls for the prior two months were revised sharply lower. Japan's Nikkei rose 2%, Australian stocks added 0.5%, and Nasdaq and S&P 500 futures advanced 0.3% and 0.1%, respectively.
2. Yields and currencies
The 10-year US Treasury yield retreated slightly to 5.2643%, while the two-year yield stood at 4.8143%. The euro rose to $1.1243 from a 17-month low, sterling ticked up to $1.3241, and the dollar fell marginally to 157.81 yen. Brent crude was little changed at $102.20 a barrel, and spot gold rose 0.3% to $4,154.32 an ounce.
