International Business: Global stock markets fall – Gulf Digital News

International Business: Global stock markets fall – Gulf Digital News

NEW YORK: Global equity markets fell as US Treasury yields reached two-week highs yesterday after data showed the American economy generated a greater-than-expected number of jobs last month, signalling the Federal Reserve will likely continue raising interest rates in its effort to curb inflation.

The Labour Department’s closely watched employment report showed the US economy added 390,000 jobs in May, with the unemployment rate holding steady at 3.6 per cent for a third straight month, beating most analyst estimates.

Traders were hoping the jobs report would reveal stronger signs of weakness in the US economy that would help persuade the Fed to soften its stance on inflation and interest rates to avoid triggering a recession.

“It was strength across the board with the exception of retail trade, and the economy on the jobs front continues to power forward,” said Josh Wein, portfolio manager at Hennessy Funds in Chapel Hill, North Carolina.

The MSCI world equity index, which tracks shares in 50 countries, was down 1.19pc. The pan-European STOXX 600 index was also down 0.30pc.

US Treasury yields advanced to two-week highs after the strong jobs data. Benchmark 10-year notes were up at 2.9534pc, while the rate-sensitive two-year year note gained and was up at 2.6647pc.

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