Investors now see a roughly 21% chance of a rate rise at the meeting September 20-21, according to Fed-funds futures tracked by CME Group, compared with a 24% chance the previous day.
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Stocks were also supported as investors moderately pushed back the probability of a rate rise at the bank’s September meeting following Friday’s slightly weaker-than-expected U.S.jobs report. Friday’s US non-farm payrolls report showed employers in the United States added 151,000 jobs last month, missing economists’ expectations and falling well below readings in June and July, which both showed more than 250,000 jobs added in each month. The shekel-dollar exchange rate is now down 0.11% in comparison with Friday’s representative rate, at NIS 3.7638/$, and the shekel-euro rate is down 0.34%, at NIS 4.2029/€. Britain’s FTSE 100 inched up 0.03 percent to 6,896.40.
“The recent string of weak economic data makes it hard for the Fed to raise rates this month”, Michael McCarthy, chief market strategist in Sydney at CMC Markets, said by phone. It rose $1.28 to $44.44 on Friday.
In Asia, economic data showed China’s August Caixin services purchasing managers’ index rose to 52.1 on a seasonally-adjusted basis, from 51.7 in the previous month.
Earlier, shares in Hong Kong rose 1.7% and Australia’s S&P ASX 200 rose 1.1%, echoing gains on Wall Street. The report is the latest in a series of unexpectedly weak data for August, including a contraction in manufacturing and a slowdown in hiring.
THE QUOTE: “Overall, jobs data continue to paint the broad recovery picture in the labor market”. Brent crude, the benchmark for worldwide oil prices, lost 28 cents to $47.35 a barrel. The euro was flat against the dollar at $1.1151.
U.S. interest rate futures price gained to indicate only about 15 per cent chance of a rate hike this month and just over 50 per cent even by December, compared to above 20 and 60 per cent, respectively, before the data were released.
USA bond yields fell, with policy-sensitive two-year notes yield falling to 0.730 per cent, its lowest since Aug. 19, down from 0.853 per cent marked on August 29. Asian stocks rose Monday as a U.S.jobs report set off hopes among traders that the Federal Reserve will wait before raising interest rates.
Prices were up 1.73 percent at $1,349.29 per ounce by 2:20 p.m. EDT (1820 GMT).
KEEPING SCORE: Japan’s benchmark Nikkei 225 added 1.2 percent to 17,129.68 in the morning session.
Last week, Brent dipped 6 percent, its biggest fall in five weeks, while US crude fell 7 percent, reported Reuters.
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Brent crude futures stood at $47.49 per barrel, up 0.5 per cent on the day and above its low last week of $45.32. USA markets are closed for the Labor Day holiday.
