Global Markets: World equities gained and the US dollar weakened after softer American employment data prompted investors to reduce expectations for another Federal Reserve interest-rate increase.
The shift matters globally because US interest rates influence bond yields, currencies, capital flows and financing conditions far beyond the United States.
Markets reassess the Fed path
Investors are balancing signs of a cooling labour market against inflation risks. A weaker employment picture can reduce pressure on the Federal Reserve to raise borrowing costs further, but policymakers will consider a broader set of economic indicators before making any decision.
Market expectations can change rapidly as new inflation, employment and growth data arrive, and they should not be treated as a guaranteed forecast of Federal Reserve policy.
Source: Reuters. More global markets coverage on NewsNationOnline.
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