©Health & Fitness Journal. FILE PHOTO: Silhouettes of passers-by are seen as they stand in front of an electric monitor showing Japan’s Nikkei stock average and world stock indices outside a brokerage firm in Tokyo, Japan October 21, 2022 REUTERS/Issei Kato
By Chibuike Oguh
NEW YORK (Health & Fitness Journal) – Global equities rose on Friday and the U.S. dollar fell after stronger-than-expected payrolls data came in but also indicated some slack in the tightened American labor market, raising hopes that the Federal Reserve would ease monetary policy tightening could loosen.
Data from the US Bureau of Labor Statistics showed the economy added 261,000 jobs in October. That was more than an estimate of 200,000, according to a Health & Fitness Journal poll of economists, but it also showed that unemployment rose to 3.7% from 3.5% in September, while wage inflation rose to 4.7% from 5% the previous month % decreased.
“We’re definitely seeing signs of easing price pressures,” said Tom Plumb, portfolio manager at the Plumb Balanced Fund in Madison, Wisconsin.
The MSCI global stock index, which tracks stocks from 50 countries, broke through two straight days of losses and rose 1.72%. European stocks also rose 1.81% a day after falling on rate hikes by the Bank of England and the Fed.
Wall Street’s three major stock indices closed higher, driven by technology, financials, consumer discretionary, communications services and industrials.
The rose 1.26% to 32,403.22, the rose 1.36% to 3,770.55 and the added 1.28% to 10,475.25.
The benchmark rose, with notes at 4.1626%.
“Even though the Fed wouldn’t talk about a pivot or anything like that, I think the market expects it to remain data dependent and over the next six months you’re going to see clear cracks in pricing pressures,” Plumb said.
The US dollar slumped after the jobs report. The price fell 1.90%, while the euro rose 2.1% to $0.9956.
Safe-haven gold rose more than 2% as the dollar fell. rose 3.1% to $1,680.33 an ounce, while the US gained 2.90% to $1,672.50 an ounce.
Oil prices rose 5% on the looming European Union ban on Russian oil and as investors weighed the impact of China’s easing of COVID restrictions. Futures were up 5% to $98.57 a barrel, while US West Texas Intermediate (WTI) crude oil futures were up 4.98% to $92.56 a barrel.