US Treasuries Sink On Solid Jobs Report; Stocks Jump: Markets Wrap
S&P 500 futures extended gains after the report, signaling the US equity benchmark will hit fresh all-time highs.
Treasuries slumped and the dollar surged as stronger-than-forecast employment growth soothed concern the US economy is poised to slow, stanching speculation the Federal Reserve will need to cut interest rates any time soon. Futures showed equities poised for their fifth rally in six days, extending a record close.
Short-dated bonds underperformed, with two-year yields climbing nine basis points to 3.88%. Money markets showed traders saw almost zero chance for a Fed rate reduction in July, compared with the roughly 25% probability seen before the report. The chance of a move in September was reduced to about 75%. S&P 500 futures extended gains after the report, signaling the US equity benchmark will hit fresh all-time highs
Traders parse jobs data.
US job growth exceeded expectations in June for a fourth straight month and the unemployment rate fell, showcasing a labor market that is holding up despite a slowing economy. Payrolls increased 147,000 last month. The unemployment rate fell to 4.1%.
Corporate Highlights:
President Donald Trump’s administration has lifted recent export license requirements for chip design software sales in China, as Washington and Beijing implement a trade deal for both countries to ease some restrictions on critical technologies.
Alibaba Group Holding Ltd. is seeking to raise HK$12 billion ($1.5 billion) from the sale of bonds exchangeable into shares of Alibaba Health Information Technology Ltd.
BlackRock Inc. is considering a sale of its stake in the leasing rights to Saudi Aramco’s natural-gas pipeline network back to the energy giant, according to people familiar with the matter.
Volkswagen AG’s Audi won’t increase prices in the US in July after its sales there nosedived in the second quarter.
Zurich Insurance Group AG agreed to buy BOXX Insurance Inc, a Canadian cyber risk management firm, marking the Swiss insurer’s latest push into the insurance technology sector.
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 8:35 a.m. New York time
Nasdaq 100 futures rose 0.4%
Futures on the Dow Jones Industrial Average rose 0.2%
The Stoxx Europe 600 rose 0.4%
The MSCI World Index was little changed
Currencies
The Bloomberg Dollar Spot Index rose 0.4%
The euro fell 0.6% to $1.1734
The British pound fell 0.3% to $1.3598
The Japanese yen fell 0.9% to 144.92 per dollar
Cryptocurrencies
Bitcoin rose 0.2% to $109,418.62
Ether was little changed at $2,591.85
Bonds
The yield on 10-year Treasuries advanced seven basis points to 4.34%
Germany’s 10-year yield declined two basis points to 2.64%
Britain’s 10-year yield declined five basis points to 4.56%
Commodities
West Texas Intermediate crude was little changed
Spot gold fell 0.9% to $3,328.83 an ounce
