Asian shares fall after wild swings in bonds, FX before US jobs data
Global markets reacted to weaker-than-expected US jobs data, which reduced the likelihood of a Federal Reserve interest rate hike in October. Treasury yields fell as investors adjusted their expectations for future monetary policy.
Why it matters
Economic indicators like nonfarm payrolls are critical for predicting central bank policy, which directly influences global financial stability.
LONDON, Oct 2 (Reuters) - Global shares rose on Friday as wild volatility in bond and currency markets eased and oil prices fell, while weaker-than-forecast US jobs data scuppered chances of a rate hike from the Federal Reserve later this month.
Nonfarm payrolls increased by 29,000 jobs last month after a downwardly revised 133,000 rise in August, the Labor Department's closely watched employment report showed on Friday. Economists polled by Reuters had forecast payrolls advancing 90,000.
Bets on a second rate rise from the Federal Reserve this month faded after the data. Markets now assign a 15% chance of a hike in October from around 25% before the data.
Two top policymakers said this week they wanted more data before deciding what to do next with interest rates. Meanwhile, a move in December is still fully priced in.
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