Rate Hike Fears Eased as US Equities Rally Amid Cautious Oil Market
Fears of higher interest rates have eased significantly, according to market expectations. Christopher Waller, a Federal Reserve governor, said he was not in favour of raising interest rates, causing market expectations for a rate hike to fall to around 50 percent from 70 percent earlier.
The US bond market has turned somewhat calmer, while crude oil prices have seen little change. US equities posted a strong rally on Thursday, with the Dow Jones Industrial Average gaining 624.16 points, or 1.18 percent, to close at 53,686.11.
The August US jobs report, due today, will be closely watched, with non-farm payrolls expected to have increased by 53,000 compared to a decline of 23,000 in July. The unemployment rate is expected to remain at 4.1 percent.