Global Markets Eye US Jobs Data

(MENAFN) Global financial markets opened Monday with optimism, as investors focused on US labor market figures and the Federal Reserve's anticipated interest rate reduction this month, which has fueled risk-taking sentiment.

According to the Job Openings and Labor Turnover Survey, the number of job vacancies dropped to 7.181 million in July, declining from the prior month and falling short of market forecasts of 7.38 million.

This marks the lowest level of job openings in the US since September 2024.

In August, nonfarm payrolls rose by only 22,000, underperforming expectations, while the unemployment rate climbed to 4.3%, the highest reading since October 2021.

These figures indicate a softening in the labor market. In response, the market anticipates three rate reductions, scheduled for September, October, and December.

On Friday, the S&P 500 declined by 0.32%, the Nasdaq edged down 0.03%, and the Dow Jones slipped 0.48%, though US futures began Monday on a positive trajectory.

Gold hit a record high of $3,600 per ounce last week, driven by expectations of interest rate cuts, but retreated slightly by 0.1% on Monday to $3,584.

Meanwhile, the US 10-year Treasury yield dropped 7 basis points on Friday to 4.09% before stabilizing at 4.1% on Monday.

The US Dollar Index closed Friday lower by 0.5% at 97.8, and inched up 0.1% on Monday to 97.9. Brent crude oil rose 1% at the start of Monday, trading at $66.1 per barrel.

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