Weaker US Labor Market Data Boosts Risk Appetite Amid Global Market Volatility

Global markets started the week on a mixed note as US labor market data showed a weaker-than-expected nonfarm payrolls in July. The 23,000 drop in employment defied estimates of an 85,000 increase and caused hawkish monetary policy concerns to ease.

The probability of the Federal Reserve maintaining interest rates rose to 53% for September, while the likelihood of a rate hike was priced at 71% for October and 83% for December. Private-sector employment climbed 44,000 in July, below estimates.

Analysts attribute the drop in employment, especially in services, to the conclusion of the FIFA World Cup in July.