Global markets: US stocks jump as treasury yields dip after jobs market softens

MSCI’s gauge of stocks across the globe gained 1.18%. The MSCI index was up 5.3% for the week, also the biggest weekly percentage increase since November 2022.

Wall Street

The US stock market indices ended higher on Friday as bond yields fell sharply after data showed signs of slowing US jobs growth and an uptick in unemployment. 

The Dow Jones Industrial Average rallied 222.24 points, or 0.66%, to 34,061.32, while the S&P 500 gained 40.56 points, or 0.94%, to 4,358.34. The Nasdaq Composite ended 184.09 points, or 1.38%, higher at 13,478.28.

For the week, the S&P 500 rallied 5.9% and Nasdaq surged 6.6%, posting their biggest gains since November 2022. The Dow jumped 5.1% for the week, its biggest since late October 2022.

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The jobs data raised hopes that the US Federal Reserve was done with its interest rate hikes, pushing the US Treasury yields lower for the fourth consecutive session. The benchmark 10-year Treasury yield hit its lowest level in over five weeks during the session.

Among stocks, Apple shares fell 0.5%, Block surged 10.7%, while Fortinet declined 12.4%.

US jobs data

US job growth slowed in October, while the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions.

The Labor Department’s closely watched employment report on Friday also showed the unemployment rate rising to 3.9% last month, the highest level since January 2022, from 3.8 in September, Reuters reported.

Nonfarm payrolls increased by 150,000 jobs last month after rising by 297,000 in September, the Labor Department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls would rise by 180,000.

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Europe

European shares ended mixed on Friday. The pan-European STOXX 600 index rose 0.17% 

Britain’s FTSE 100 fell 0.39% to 7,417.73, while Germany’s DAX rose 0.30% to 15,189.25. France’s CAC 40 declined 0.19% at 7,047.50.

Asian Markets

Among Asian markets, Japan’s Nikkei 225 gained 1.10% to 31,949.89, while Hong Kong’s Hang Seng rallied 2.52% to 17,664.12. China’s Shanghai Composite surged 0.71% to 3,030.80.

Also Read: Nifty 50, Sensex rise for second consecutive session; investors’ wealth rise by about ₹2 lakh crore 

Currencies, Treasury yields

The US dollar declined to a six-week low and benchmark 10-year US Treasury yields fell to five-week lows on Friday.

The dollar index fell 1.111%, with the euro up 1.07% to $1.0734. The Japanese yen strengthened 0.72% against the greenback at 149.31 per dollar, while sterling was last up 1.46% at $1.2379.

The benchmark 10-year yields fell as low as 4.484%, the lowest since September 26. Two-year note yields reached 4.807%, the lowest since September 1, Reuters reported.

Energy Prices

Crude oil prices ended more than 2% lower, with the geopolitical risk premium waning.

Brent crude declined 2.26% to end at $84.89 a barrel, while US West Texas Intermediate crude fell 2.36% to settle at $80.51 a barrel.

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Updated: 04 Nov 2023, 07:02 AM IST