However, Chinese stocks fell 0.5% and the Japanese Nikkei fell 0.26% and the yen stabilized at 155.5 units per dollar, close to the 34-year lows hit at the end of April.
The American Economy created 272,000 jobs in the month of May, above estimates and the 165,000 jobs created in April. The greatest concentration of these new positions was in the Government and in the health sector.
The unemployment rate stood at 4%, the highest in two years. The better the market is, the more doubt there will be about when the Federal Reserve’s rate cut will begin. The yield of treasuries jumped 3%, in that context.
This Friday, before the data, world stock markets were trading near their all-time highs. After the employment data, futures turned negative.
Futures markets indicated a cautious opening in New York, with S&P 500 index contracts trading sideways, as traders paused the rally in US government debt. The US nonfarm payrolls report could confirm or challenge the perception that the labor market is weakening enough to allow a steady reduction in inflation.
Dollar and rate cut
Money market prices suggest traders expect the Fed to cut rates from their 23-year high of 5.25-5.5% by September, following similar moves in other major economies. On Thursday, the European Central Bank cut its deposit rate from 4% to 3.75%, sparking a mild cross-reaction, although the prospect of more favorable lending conditions has buoyed equities in the region for months.
MSCI’s broadest index of Asia-Pacific shares excluding Japan improved 0.2%, ending the week up nearly 3%. However, Chinese stocks fell 0.5% and the Japanese Nikkei fell 0.26%. The yen stabilized at 155.5 units per dollar, near the 34-year lows hit at the end of April.
In the commodities market, Brent crude futures were trading flat and spot gold lost 1.7% to $2,335.47 an ounce.
Source: Ambito
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