Stocks rise as investors cling to hopes for US rate cuts

Written by Wayne Cole and Emana Cooper

Sydney/London (Reuters) -Global shares increased on Monday, by strengthening the possibility of low interest rates, after the USA’s weak job report prompted a significant reassessment of average expectations and ignited concern about the reliability of US economic data.

The US salary report in the United States on Friday for the month of July was absent from expectations and a sharp review of numbers for the month of May and June, which sparked a sale in Wall Street and the dollar education.

By Monday, with the opportunity to reduce the September rate of the Federal Reserve by 85 %, some stability returned to the broader market, allowing Stoxx 600 in Europe by 0.5 % in morning trading. The dollar rose against a basket of six other major currencies.

The descending reviews in the average salary report left for a period of three months for job growth at 35,000, a decrease from 231,000 at the beginning of the year.

“I think the biggest ready -made meals of all this is a clear review. We have all seen poor NFP prints in the past, that we can explain that it is” once “, but this chunted warm review indicates that this could be more clear in the current labor market conditions.”

president Donald Trump’s decision to dismiss the head of work statistics in response to an additional nervous layer to the credibility of American economic data.

News that Trump will receive the position of ruler at the Federal Reserve Bank early, added to concerns about politicizing the interest rate policy.

“It opens the possibility of broader support on the Federal Reserve Panel to get lower prices sooner, not later,” said Ray Adrill, president of FX Research at NAB.

“The credibility has been fed and the validity of the statistics on which their political decisions are built, and both are now under the spotlight.”

The markets have already decreased mainly to obtain the Federal Reserve, as the cabinet decreased for approximately 25 basis points on Friday at the largest decrease for one day since August last year.

DATED dollar

Wall Street futures increased by 0.5-0.6 %, indicating some recovery after Friday washing that paid the S&P 500 to 1.6 % and NASDAQ by 2.2 %.

The dollar, which decreased by 1.4 % on Friday, rose in the largest decrease for one day since April, on a large scale, leaving the euro by 0.1 % at $ 1.1578. Meanwhile, the pound reached up to $ 1.3307 before reducing the rate of a quarter of a large -score on Thursday from the Bank of England, which traders sold for some time.

The Swiss franc was beaten, leaving the dollar by 0.6 % with the reopening of the markets in Zurich after a public holiday on Friday, when Trump announced a 39 % tariff on Swiss imports.

The dollar also increased by 0.1 % against the yen at 147.52, after threw 2.3 % of the water on Friday.

In the basic commodity markets, gold did not change slightly at $ 3,364 an ounce, after more than 2 % rose on Friday, while oil prices extended their last segment after OPEC approval on Sunday at another significant production for September.

The increase is completely reflected on last year’s discounts of 2.2 million barrels per day. Brent crude futures fell 1.7 % at $ 68.48 a barrel.

(Participated in the reports of Wayne Cole and Emana Cooper; edited by Clarence Fernandez, Jimmy Farid, Andrew Heifens and Suzanne Fenton)