Global stocks and bonds fell, and the dollar rose on Monday after last week’s stronger-than-expected U.S. jobs data raised the possibility of further interest rate hikes.
Data released on Friday showed that the U.S. Added 517,000 jobs In January, the unemployment rate fell to its lowest level in 50 years, well above Wall Street economists’ expectations of 185,000.
Wall Street blue chip S&P 500 and tech-rich Nasdaq Composite both fell 0.3% as the report continued to sour sentiment. U.S. stocks tumbled on Friday after a job report, but his one-week low, the lowest since March, as the Federal Reserve raised its main policy rate by a quarter percentage point. rose over
Standard Chartered strategist Steve Englander said “U.S. labor numbers were shocked” and job creation figures “make it more likely that the Fed will continue to raise rates.” A measure of the dollar’s strength against a basket of six other currencies rose 0.7% on Monday, but Refinitiv data showed the currency had fallen 5.8% over the past three months as U.S. interest rate rises slowed. is showing.
Englander said the jobs report alone is unlikely to quell negative views on the dollar, but the “worrying signal of inflation” in January’s numbers later this month could do the trick. Stated. Inflation in December was 6.5% annualized, his sixth straight month of decline.
US and European government bonds were put up for sale along with stocks. The benchmark 10-year Treasury yield rose 0.1 points to 3.63% after rising 0.13 points on Friday.
10-year German bund yields rose 0.1pts to 2.29%, reversing last week’s decline.
Despite the European Central Bank and the Bank of England raising interest rates by half a percentage point last week, traders initially rushed into government bonds on hopes the current rate hike cycle might be coming to an end.
The European region-wide Stoxx 600 fell 0.8%, as did the German Dax, with sentiment soured by weak Eurozone retail sales in December. London’s FTSE 100, which hit a record high last week, fell 0.8%.
Most Asian stocks fell on Monday, Chinese stocks rallied in January, Rise in US-China tensions Atrophied emotions. Hong Kong’s Hang Seng Index fell 2% and China’s CSI 300 fell 1.3%.
