Lates News

The unexpectedly strong increase in non-farm employment in the United States has shocked traders in the US bond market, causing them to reduce their bets on a rate cut by the Federal Reserve this year. Short-term government bonds were hit the hardest, with two-year bond yields rising by 6 basis points to around 3.51%. The market currently expects the next rate cut by the Fed to happen in July instead of the previously expected June. After a flat close on US stocks, Asian stock index futures showed a mixed trend. Futures indicated that the Japanese stock market would rise on Thursday after the end of a holiday break, while Australian benchmark stock index futures were falling. These fluctuations indicate that the strong US economy is offsetting market desire for lower borrowing costs and supporting risk sentiment. Bret Kenwell of eToro believes that investors should welcome the US employment report, even if it gives the Fed more room to keep rates unchanged. He stated, "If the labor market does indeed show signs of stability, that would be constructive for both the economy and the market."