Yields on the benchmark 10-year U.S. Treasury note rose 1.6 percent for the first time since June, the dollar weakened and stocks fell on Wall Street as technology and other high-growth stocks sold while energy and finance rose.
Global equity markets rallied on a weaker US labor market report on Friday, and Treasury yields rose as investors still expect the Federal Reserve to start reducing its massive bond purchases early next month. will make. Stock
The U.S. economy created the lowest number of jobs in nine months in September, amid school shortages and labor shortages. Some have attributed the need for vaccines to deal with the Delta variety of additions, at least in part after the loss of jobs.
Unemployment hit an 18-month low of 4.8 percent.
Stocks waver after US job data
“The weakness of the headlines hides a much stronger job market otherwise,” said Russell Price, chief economist at Ampriage Financial Services Inc. in Troy, Michigan. “It’s about the vaccination mandate for people who may have lost their jobs because of it.”
MSCI’s All Country World Index (.MIWD00000PUS) fell 0.05%, but rose 0.7% for the week.
In Europe, the broader STOXX Europe 600 Index (.STOXX) closed 0.28% higher but remained the best week in two months due to rising inflation concerns.
In Europe, gains in oil (.SXEP) and bank stocks (.SX7P) outperformed tech stocks (.SX8P) by more than 1.4% as rising bond yields dampened the appeal of the high-growth sector, even on Wall Street. The story was watched.
Dow Jones Industrial Average. O), which fell 4.7%.
All three indices rose during the week.
The September jobs report was the last before Fed policymakers met on November 2-3, when the market expects tariffs to begin or a timeline to be announced.
Kathy Leane, managing director of BK Asset Management in New York, said the Fed has made it clear it does not need a blockbuster jobs report to top it in November.
“When you see a slight pullback in the dollar, I think the Fed is on track,” he said.
The dollar index, a basket of six currencies against the greenback, fell 0.076 percent to 94.105.
The euro gained 0.19 percent to 15 1.1572 and the Japanese yen gained 0.56 percent to 2 112.2200.
Thomas Hayes, chairman and managing member of Great Hill Capital LLC, said the sideways market is due to an information gap before the start of the third-quarter earnings season next week.
“There’s been some uncertainty with Delta over the last few weeks, so the market is really waiting for estimates,” Hayes said.
The global stock index turned positive for the week after Thursday’s rally, initially worrying investors despite rising energy prices and higher-than-expected interest rates to deal with inflation.
The US Senate passed legislation to increase the federal government’s debt ceiling and avoid the risk of a historic default, although it blocked a decision on long-term treatment until early December. Read more
In Asia, the main share benchmark was supported by developments in Chinese blue chips (.CSI300), which rose 1.31% as trading resumed after a long National Day holiday on Saturday. The private sector survey has improved sentiment, showing that China’s services sector has returned to growth in September.
Chinese shares have been hit by regulatory clamp downs over the past three months, China Evergrande’s massive debt-ridden property sector turmoil, and recent power shortages. But some investors are starting to see a buying opportunity.
Oil prices rose more than 4 percent a week as the global energy crisis pushed prices to their highest level since 2014 as major global power consumers struggled to meet demand.
Brent crude rose 0.54 percent to 82 82.39 a barrel. US crude rose 1.34 percent to 79 79.35 a barrel.
US gold futures fell 0.1 percent to 75 1,757.40 an ounce. Stock