{"id":137725,"date":"2021-09-03T16:47:50","date_gmt":"2021-09-03T16:47:50","guid":{"rendered":"https:\/\/precoinnews.com\/?p=137725"},"modified":"2021-09-03T16:47:50","modified_gmt":"2021-09-03T16:47:50","slug":"yields-jump-equities-waver-after-u-s-jobs-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/yields-jump-equities-waver-after-u-s-jobs-report\/","title":{"rendered":"Yields jump, equities waver after U.S. jobs report"},"content":{"rendered":"
NEW YORK\/LONDON (Reuters) -The benchmark U.S. Treasury yield jumped on Friday on fears of rising inflation while equity markets wavered after a weaker-than-expected U.S. jobs report likely pushed back when the Federal Reserve will start to reduce its support for the economy.<\/p> U.S. employers created the fewest jobs in seven months in August as the COVID-19 Delta variant stalled hiring in the leisure and hospitality sector, but a 0.6% increase in wages and other data showed underlying economic strength.<\/p>\n Nonfarm payrolls increased by 235,000 in August, well short of the 728,000 forecast by economists in a Reuters poll. But the unemployment rate fell to 5.2% from 5.4% the prior month, the Labor Department said.<\/p>\n The broad S&P 500 and Dow fell as the slowdown in U.S. jobs growth raised questions about the pace of the economic recovery. But the tech-heavy Nasdaq and its global counterpart, MSCI\u2019s all-country world index, held near break-even as the report calmed fears of an imminent Fed tapering of monetary support.<\/p>\n A taper announcement is off the table in September after the jobs report, said Lee Ferridge, North American head of multi-asset strategy at State Street Global Markets.<\/p>\n \u201cSupport from the Fed for these markets is going to persist. Taper starts later rather than sooner. That\u2019s positive for equities, that\u2019s positive for risk,\u201d he said.<\/p>\n \u201cAs long as the Fed is printing, then that means that the equity markets are supported by the whole QE liquidity argument,\u201d Ferridge said.<\/p>\n MSCI\u2019s all-country world index was flat while broad STOXX Europe 600 index slid 0.65%.<\/p>\n On Wall Street, the Dow Jones Industrial Average fell 0.23%, the S&P 500 eased 0.17% and the Nasdaq Composite edged up 0.03%.<\/p>\n Yields on the benchmark 10-year Treasury note rose 3 basis points to 1.324%, from around 1.299% before the data was released as the jump in hourly earnings raised the inflation alarm for investors.<\/p>\n The dollar index dropped to a low of 91.941, its lowest level since Aug. 4, and was last down 0.18% at 92.054.<\/p>\n The European single currency edged up 0.03%. Markets are starting to react to the potential for more sustained euro zone inflation and reduced stimulus from the European Central Bank, which meets next week.<\/p>\n In Europe, data showed that euro zone business activity remained strong last month, despite fears about the Delta variant and widespread supply chain issues.<\/p>\n Japanese shares jumped after officials said Prime Minister Yoshihide Suga would step down, setting the stage for a new premier after a one-year tenure marred by an unpopular COVID-19 response and rapidly dwindling public support.<\/p>\n Japan\u2019s TOPIX stock index rose to a 30-year high and was last up 1.61%, with the Nikkei gaining 2%. Asian shares are still off their peaks from earlier in the year however, and lagging those elsewhere.<\/p>\n Meanwhile, Chinese blue chips were down 0.5% and Hong Kong was off 0.72% after activity in China\u2019s services sector slumped into sharp contraction in August, a private survey showed on Friday, hurt by restrictions imposed to curb the COVID-19 Delta variant.<\/p>\n Brent crude futures were last down 10 cents at $72.93 a barrel. U.S. crude fell 34 cents $69.65 a barrel.<\/p>\nJAPAN JUMPS, CHINA EASES<\/h2>\n