Updates to actions
Sign up for myFT Daily Digest to be the first to know about stock news.
Global bond markets kept selling pressure after US jobs data showed the world’s largest economy created nearly a million jobs in July, at a time of intense debate on when policymakers will cut stimulus in times of crisis.
The yield on the 10-year US Treasury bill rose 0.06 percentage point to 1.28% after Friday’s report, signaling a decline in the price of debt. Government bond markets in the UK and mainland Europe also fell.
US employers created 943,000 jobs in July, a third consecutive month of gains of more than 500,000, according to data from the Department of Labor. June’s figure was revised to 938,000 from a previous reading of 850,000. The unemployment rate fell 0.5 percentage points in July from June to 5.4%, a substantial but still progress. well above the levels reached at the end of 2019 before the pandemic.
Friday’s jobs report is the latest before the Jackson Hole summit of global central bankers at the end of the month. The good jobs numbers will intensify the debate over when the US Federal Reserve starts to curb its ultra-supportive policies as the economic recovery from Covid-19 gathers pace. The world’s largest central bank has kept interest rates at historically low levels and bought $ 120 billion in assets per month throughout the health emergency.
“Today’s employment figures. . . have the potential to shape the cone debate over the next few months, especially since it’s the last before Jackson Hole, ”wrote Jim Reid of Deutsche Bank.
Fed Chairman Jay Powell said last week that “the job market still has some way to go” and the current rate “still underestimates the lack of jobs”. However, other members of the Fed’s policy committee took a more hawkish tone about the recovery in comments earlier in the week.
The futures contracts that track the S&P 500 and Nasdaq Composite indices were little changed. US markets closed at record highs Thursday as investors anticipated employment data and weighed on a bumper earnings season on both sides of the Atlantic. Goldman Sachs analysts said this week they expected the blue-chip S&P 500 index to gain another 7% by the end of 2021, in addition to the 17% rise recorded until here.
The European Stoxx 600 Index traded in a narrow range, leaving it on track for its best week in five months after managing to hit a new high every day since Monday. The UK’s FTSE 100 rose 0.1% after the Bank of England left policies unchanged on Thursday, but shifted to a slightly more hawkish tone.
Asian markets were muted after a turbulent week, as investors analyzed statements from the ruling party in China to try to determine which sectors could be targeted next as Beijing seeks to assert greater control over key elements of the ‘economy. Tech stocks, tutoring and games have all been hit in recent weeks. Hong Kong’s Hang Seng Index drifted on Friday while China’s CSI 300 fell 0.6%.
Elsewhere, benchmark Brent crude rose 1% to $ 72.05 a barrel, ending a volatile week where prices fell about 5%, heading for its worst week since March, fearing the spread of the Delta coronavirus variant and new travel restrictions are easing. request.
Not covered – Markets, finance and strong opinion
Robert Armstrong dissects the most important market trends and explains how the best minds on Wall Street are reacting to them. Register now here to receive the newsletter directly in your inbox every day of the week