BLBG:Treasuries Jump on Payrolls With S&P 500 Futures
Treasuries rallied and the dollar fell after American payrolls climbed less than forecast, curbing speculation the Federal Reserve will cut stimulus. U.S. equity-index futures and European stocks rose and gold jumped.
U.S. 10-year yields fell 11 basis points to 2.88 percent at 8:40 a.m. in New York, after earlier reaching 3.005 percent. Standard & Poor’s 500 Index (SPX) futures gained 0.4 percent and the Stoxx Europe 600 Index added 0.4 percent. The Bloomberg U.S. Dollar Index slid 0.7 percent, with the yen appreciating 1.1 percent to 99.01 per dollar. Tin climbed 2.1 percent on concern about supply disruptions after Indonesia imposed new trading rules. Gold advanced 1.5 percent to $1,387.80 an ounce.
U.S. nonfarm payrolls rose less than estimated after smaller gains the prior two months, Labor Department data showed. The Fed is scheduled to meet Sept. 17-18. Leaders of the world’s biggest economies meet for a second day at a Group of 20 summit in Russia as they grapple with threats from the effects of the Syrian conflict to the fallout from a potential stimulus exit.
The payroll number “is a very important number because it is the number that Fed policy is benchmarked against,” Peter Esho, chief market analyst at Invast Securities Co. in Tokyo, said by phone. “A discussion around employment is going to drive the outcome of the Fed’s meeting later this month.”
Jobs Data
The gain of 169,000 workers last month followed a revised 104,000 rise in July that was smaller than initially estimated, Labor Department figures showed today in Washington. The median forecast of 96 economists surveyed by Bloomberg called for an August increase of 180,000. Unemployment dropped to 7.3 percent, the lowest since December 2008.
Fed Bank of Chicago President Charles Evans, a voter on policy this year, said the central bank shouldn’t taper its $85 billion in monthly bond buying until inflation and economic growth pick up.
The yen rebounded today from its weakest close against the dollar since July 24. The Bloomberg U.S. Dollar Index, which tracks the currency against 10 major peers, pared its weekly advance to 0.2 percent. That would be a fourth week of gains.
German 10-year bund yields fell seven basis points to 1.97 percent after rising above 2 percent for the first time in 17 months yesterday. U.K. 10-year gilt yields lost five basis points to 2.96 percent as the securities pared a seventh weekly decline, the longest run since February 2007.
Stocks Rebound
Three stocks gained for every two that declined in the Stoxx 600, which has risen 2.9 percent this week, its first weekly gain in three.
ProSiebenSat.1 Media AG lost 1.4 percent as Telegraaf Media Groep NV sold its 6 percent stake in the German broadcaster. Deutz AG plunged 9.2 percent after an investor sold an 8.4 percent holding in the maker of diesel engines. Air France-KLM Group added 2.1 percent as the airline said that its passenger traffic rose 4.9 percent in August.
The MSCI Emerging Markets Index added 0.7 percent, rising for a third day in its biggest weekly advance in almost two months. India’s S&P BSE Sensex index jumped 1.5 percent and the rupee gained 1.4 percent, heading for its first weekly gain in four weeks. Benchmark gauges in Russia, Poland, Turkey and Thailand increased more than 1 percent.
China Trade
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong decreased less than 0.1 percent and the Shanghai Composite Index gained 0.8 percent before the release of August trade data on Sept. 8. Overseas shipments are expected to have gained 5.5 percent from a year ago, compared with a 5.1 percent advance in July, according to the median estimate in a Bloomberg survey.
Tin jumped to as high as $22,770 a metric ton, the most since April 12, on the London Metal Exchange, the world’s largest metals bourse. Indonesia imposed rules on exporters to trade the metal on the Indonesia Commodity and Derivatives Exchange. Indonesia accounts for 40 percent of global tin exports. Tin producer PT Timah declared force majeure on shipments. Its shares jumped 5.8 percent in Jakarta.
Copper climbed 1.1 percent. The U.S. is the biggest buyer of the metal after China. Zinc gained 1.8 percent and lead advanced 1.6 percent.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Richard Frost in Hong Kong at rfrost4@bloomberg.net;
To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net
