Title: Global Stocks Rise, Dollar Falls as US Job Growth Slows

Publication Date: Sat 4 Nov 2023, 12:06 AM

Global stock indexes experienced a significant surge, while the US dollar dropped to a six-week low and benchmark 10-year US Treasury yields reached a five-week low on Friday. This was in response to data that revealed US job growth had slowed more than expected in October.

The slowdown in job growth has reinforced the belief that the Federal Reserve may halt its interest rate hikes. Additionally, US two-year yields dipped to their lowest level since early September, as the data suggested that strikes by the United Auto Workers union against Detroit’s “Big Three” carmakers had an impact on manufacturing payrolls.

Furthermore, the data indicated that the increase in annual wages was the smallest in nearly 2-1/2 years, indicating a potential easing in labor market conditions. Brad McMillan, the chief investment officer for Commonwealth Financial Network in Massachusetts, highlighted that this slowdown is positive news as it may keep the Fed from further rate hikes, addressing concerns about an overheated economy.

The recent decision by the US central bank to leave rates unchanged and comments from Fed Chair Jerome Powell have also led some investors to believe that the Fed may be finished with rate hikes. Similarly, the Bank of England decided to leave rates untouched on Thursday. However, central bank officials cautioned that more actions might be necessary to combat inflation.

In conclusion, the global stock market responded positively to the slowdown in US job growth, with investors foreseeing a potential pause in interest rate hikes by the Federal Reserve.