Market Summary
Soft US Jobs Data Boosts Equities and Gold: U.S. Non-Farm Payrolls unexpectedly fell by 23,000 on Friday, prompting traders to reduce expectations of a September Federal Reserve rate hike from 63% to 46%. The weaker labour market data weighed on the U.S. dollar and pushed XAU/USD as high as $4,340 on Friday. Gold is broadly flat this morning, with spot gold up 0.09% at $4,343 an ounce. Global stocks remain close to record highs following Friday's softer U.S. jobs data, which reduced expectations for further Federal Reserve tightening. The move has supported technology and growth stocks, with the KOSPI rising 0.42% overnight and Nasdaq futures up 0.31% this morning. U.S. equity futures remain positive, with S&P 500 futures edging 0.05% higher.
Oil Holds Gains as Hormuz Deal Remains Elusive: Iran rejected talks with the U.S., while efforts to reach an agreement to reopen the Strait of Hormuz remained unsuccessful. Brent crude is trading around $83.47 a barrel this morning after rallying more than 5% over the previous three sessions. The sustained rise in oil prices continues to keep geopolitical and inflation risks in focus, particularly as markets reassess the outlook for global monetary policy.
Treasuries Give Back Some Friday Gains: U.S. Treasuries have surrendered part of Friday's rally following the weaker-than-expected jobs data, with the benchmark 10-year Treasury yield rising around one basis point to 4.66%. Despite the recent move lower in yields, softer labour market conditions have reduced expectations for a September rate hike, providing some support for risk assets and reinforcing the market's focus on the Federal Reserve's next policy decision.
Yen Underperforms as Intervention Boost Fades: The Japanese yen remains under pressure, trading around 158.30 against the U.S. dollar. The yen has been the weakest-performing G10 currency this month as the impact of recent intervention fades, keeping traders alert to the possibility of further official action. The currency strengthened sharply on Friday following the release of the weaker U.S. labour market data but has since given back some of those gains.
Economic Calendar
- Norway CPI
Key Market Moves Today
- S&P 500 Futures: +0.05% (7,783.8)
- U.S. 10-Year Treasury Yield: +0.82 bps (4.65%)
- Brent Crude: +0.14% ($83.70)
- Bitcoin: -0.32% ($64,998)
- Spot Gold: +0.09% ($4,343)
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