Dollar gains, Treasuries fall after jobs report: Markets end
(Bloomberg) – The dollar strengthened and Treasury yields rose after a better-than-expected payroll increase in the United States fueled expectations that the Federal Reserve was approaching a withdrawal from stimulus measures.
Stocks were mixed, with the S&P 500 higher and the Nasdaq 100 lower at the start of the session. US job growth accelerated the most in July in nearly a year, and the unemployment rate fell, illustrating additional momentum for the still struggling labor market . The 10-year U.S. Treasury yield has climbed above 1.28%
As strong earnings have supported markets this week, helping the S&P 500 and Nasdaq 100 to reach new highs, the debate about when the Fed should start cutting stimulus continues. The jobs data mark a further step towards the Fed’s goal of making “substantial” progress in the labor market recovery as the central bank grapples with inflation well above target but a market in the labor market. work far from full employment.
“There’s not much not to like here,” said Kathy Jones, chief fixed income strategist for the Schwab Center for Financial Research. “It probably gets the conversation going on reduction. I imagine the Fed wants to see another good report like this, but it’s probably going to get them much closer to the cut sooner rather than later. “
The Stoxx Europe 600 index rose amid mixed earnings, on track to post the best week in three months. HelloFresh SE fell more than 8% after the online catering company cut its margin guidance, while more bullish results from lender Allianz SE and London Stock Exchange Group Plc helped offset the losses. Core European bonds fell.
WTI crude oil rose but remained on track for the biggest weekly loss since March on demand risks from Covid-19.
The spread of the delta strain continues to complicate plans to return life to some sort of normalcy. Companies like Amazon.com Inc., BlackRock Inc., and Wells Fargo & Co. have delayed plans to return to the office. Analysts are watching both the United States and China for signs of the variant hampering recoveries.
For more market analysis, read our MLIV blog.
Here are the main movements in the markets:
The S&P 500 rose 0.2% at 9:41 a.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 rose 0.2% L MSCI World index has changed little
Bloomberg Dollar Spot Index rose 0.3% Euro fell 0.4% to $ 1.1783 British pound fell 0.2% to $ 1.3904 Japanese yen fell 0 , 4% at 110.19 per dollar
The 10-year Treasury bill yield rose six basis points to 1.28% Germany’s 10-year yield rose four basis points to -0.46% The 10-year bond yield Britain rose eight basis points to 0.60%
West Texas Intermediate crude rose 0.3% to $ 69.28 per barrel Gold futures fell 2.1% to $ 1,771.10 per ounce
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