Soft US Jobs Report Sends Relief Wave Through Markets
A softer-than-expected US jobs report on Friday led to a relief wave across financial markets, pushing London's FTSE 100 index up by 0.3% and trimming down interest rate hike bets in the US.
The September non-farm payroll employment numbers came in at 29,000, well below the forecasted 90,000, which sent a ripple of relief across bond markets as investors reassessed their expectations for an October Federal Reserve interest rate increase.
Wealth Club's chief investment strategist, Susannah Streeter, noted that 'there's been a ripple of relief on financial markets as hopes rise that the Fed won't have to go so hard and fast in raising interest rates.'
The reduced chances of an October hike saw the CME FedWatch tool put a 80% probability on the Federal Reserve leaving rates on hold, compared to 76% on Thursday.