Non-farm payrolls data due out in the USA on Friday are expected to show the world’s largest economy added 180,000 jobs in August but a stronger number may be needed to support Fischer’s view there’s room for two hikes, starting in September.
Advertisement
Pointing to solid growth in household spending and a strengthening job market, Yellen said the U.S. economy is “now nearing” the Fed’s statutory goals of maximum employment and price stability. British markets were closed for a holiday.
The advance in the USA stock markets was led by financials, which stand to gain the most in an environment of higher interest rates. The German DAX and France’s CAC 40 index dropped about 0.4 percent each while the pan-European Stoxx Europe 600 index slid 0.2 percent.
And after closing lower on Friday, Wall Street stock futures pointed to a flat start on Monday.
The dollar rose 0.5 percent to a three-week high of 102.39 yen. Benchmark 10-year yields were last at 1.565 percent, compared to 1.633 percent late Friday. South Korea’s foreign reserves jumped to a record high in July, the central bank said on August 5, 2013, appearing to support traders’ suspicions of dollar-buying intervention by currency authorities last month.
The yield on Germany’s benchmark 10-year bond briefly rose more than 6 basis points to minus 0.025 percent – the highest level since June 24, when the result of Britain’s European Union referendum sent shockwaves through markets. If Friday’s jobs report is good, the Fed may move to increase rates as early as September. The central bank boss also hinted a rate increase is on the cards in coming months, which weighed on USA markets on Friday and dragged stocks in most of Asia and Europe lower on Monday.
Iran also said late last week that it would only cooperate in upcoming producer talks in September if other exporters recognised Tehran’s right to regain market share lost during global sanctions that were lifted in January.
New York:The US dollar traded mixed against other major currencies as investors were digesting the recent remarks by Federal Reserve Janet Yellen and newly-released economic data from the country.
“That is probably going to weigh on gold”.
Advertisement
Spot gold was little changed at $1,310.48 per ounce at 0104 GMT.
