- Home
- >
- Fundamental Analysis
- >
- U.S. stocks and dollar gain, treasuries drop on jobs report – markets wrap
U.S. stocks and dollar gain, treasuries drop on jobs report - markets wrap
Rating:
Loading...U.S. stocks rose with the dollar, while Treasuries fell after unexpectedly strong hiring data bolstered confidence in the American economy and bolstered the Federal Reserve’s case for raising interest rates. Crude fell below $45 a barrel. Gold futures turned lower.
Broad-based payroll gains that topped estimates boosted sentiment among equity investors a day after stocks suffered the biggest drop in six weeks.
The hiring report supported the Federal Reserve’s stance that recent signs of labor market sluggishness are transitory, though the tepid wage gains gave fuel to arguments that weakness remains. While stocks advanced on the perceived economic strength, the dollar and Treasury markets focused on the implications for the Fed’s next rate hike. Janus Henderson’s Bill Gross told Bloomberg Radio that he expects the central bank to go through with a third increase this year, likely in December.
The yen dropped 0.6 percent to 113.843 per dollar, reversing an earlier gain of 0.1 percent. The currency is down more than 1 percent for the week, heading for the biggest drop since the end of April.
The euro fell 0.4 percent to $1.1381 after jumping 0.6 percent in the previous session, while the pound weakened 0.6 percent to $1.2874.
West Texas Intermediate tumbled 3.6 percent to $43.87 a barrel, more than erasing Thursday’s 0.9 percent gain. Oil is down more than 4 percent for the week as a decline in U.S. stockpiles failed to convince investors that global markets are rebalancing. Gold futures slipped 0.8 percent to $1,213.60 an ounce. The precious metal is down 1.6 percent for the week, its worst performance since early May.
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
