US Jobs Data Surges, Boosting Rate Hike Expectations Amid Mixed Metals Performance

The US nonfarm payrolls report released on Friday showed an unexpected surge in job growth, beating economists' expectations. The August report revealed that the US economy added 162,000 jobs, with a rebound in leisure and hospitality employment and an increase in government sector employment driving the growth.

The strong jobs data has boosted rate hike expectations, with investors increasing their bets on a Fed rate hike in September. The People's Bank of China (PBOC) also announced that it will conduct a 500 billion yuan outright reverse repo operation next Monday through fixed-quantity, rate tender, and multiple-price bidding.

In the metals market, base metals showed mixed performance overnight, with LME zinc leading the gains at 1.1%. Ferrous metals generally rose, with iron ore increasing by 1.52%. However, precious metals were down, with COMEX gold falling 1.38% and COMEX silver dropping 1.31%.

The August jobs report has shifted attention to the upcoming inflation data release next week, which will be crucial in determining whether the Fed raises interest rates. Jeff Rosenberg from BlackRock noted that if the Consumer Price Index (CPI) continues to show improvement, he thinks the Fed will keep rates unchanged.