US Jobs Data Jolts Markets with Surprise Rate Hike Bets
Global markets were caught off guard by the release of US jobs data for August. The numbers revealed a significant addition to non-farm payrolls, far exceeding expectations.
The Bureau of Labor Statistics reported an increase of 162 thousand jobs in August, compared to only 56 thousand anticipated. This surge has led to increased expectations of a Fed rate hike, following dovish comments from a Fed official that had earlier cooled such speculation.
Markets are now pricing in a higher likelihood of interest rate increases, with the Dollar Index jumping by more than a quarter percent and ten-year sovereign bond yields hardening across tenors. This shift has had a ripple effect across various asset classes, including gold, which plummeted by over 2% as investors repriced their bets.
Cryptocurrencies have also taken a hit, but remain above the flatline, while crude oil prices and other commodities are trading with losses.