But The Wall Street Journal said last month’s report “reinforced market expectations that the Federal Reserve will push off a rate increase until December at the earliest”.
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MSCI’s gauge of global shares rose 0.1 per cent at 11:08am in NY, extending a five-day rally.
Sydney edged up 0.1 per cent after data showed the Australian economy expanded 3.3 per cent on-year in April-June, broadly in line with forecasts and marking 25 years of unbroken growth. The 2-year yield, which is highly sensitive to policy changes, is still above its recent lows, but the 0.80% rate as of Sep.
And Singapore stocks were down 0.14 per cent at 2,892.57 as at 11:27am.
In the US on Tuesday, data showed the US Institute for Supply Management (ISM) non-manufacturing purchasers manager index (PMI) index fell to 51.4 last month from 55.5 in July. Before the ISM data was released, hopes of a Fed rate hike had been already reduced by a poor August non-farm payroll in the US released September 2.
However, the average payroll increase over the last three months is above the 200,000 level that tends to comfort investors and keep higher USA rates on the table.
Goldman now sees a 70 percent chance that the US central bank will raise rates at least once this year, down from 80 percent.
“With (Other OTC: WWTH – news) a September rate hike looking less likely to happen, the European Central Bank might be more pressured to come up with a decision this week on further measures”, said Benjamin Schroeder, senior rates strategist at ING.
USA bond yields fell, with policy-sensitive two-year notes yield falling to 0.730 percent, its lowest since August 19, down from 0.853 percent marked on August 29.
Futures data show about a 52 percent chance of a Fed hike this year, down from 59 percent on September 2.
Declining US yields undermined theUS dollar against other currencies and precious metals.
The dollar was last down 0.4 percent at 101.56 yen, having fallen as low as 101.18, its weakest since August 16.
Japan’s Nikkei index, however, retreated 0.4 percent as a strong yen hurt exporters. The metal touched a high of $1,352.65, its best since August 19 and is up about 1.7 percent so far this week.
Gold rallied to $1,352.4 per ounce to near three-week highs on Tuesday, and last stood at $1,350.0.
US Labor Market Conditions were even worse, dropping from a revised 1.3 to -0.7.
Australia’s dollar rose for a fifth day in the longest winning streak since March.
Hiring slowed last month while U.S. service industries expanded at the weakest pace in six years, joining manufacturers in an abrupt deceleration.
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Oil prices edged up after early losses but gains were limited after talks between Russian Federation and OPEC kingpin Saudi Arabia at the weekend did not produce any plans on addressing a global supply glut. Brent crude, the benchmark for global oil prices, lost 18 cents to $47.45 a barrel.
