GLOBAL MARKETS-Wall Street adds to stock, rate cut bets after 'Thanksgiving buffet' jobs data

Treasury yields dipped after the data, with the yield on benchmark U.S. 10-year notes down 2.3 basis points to 4.159%, while the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 4.4 basis points to 4.102%. European shares eked out gains on Friday, with French stocks logging their biggest daily rise in three weeks as investors factored in a potential budget despite ongoing political uncertainty, while also parsing an upbeat U.S. jobs report.

Investors raised their bets on the prospect of a U.S. interest rate cut this month, after payrolls data showed job growth came in roughly in line with expectations in November, while the euro dipped against the dollar as political turmoil gripped France. Futures markets put an 85% chance on the U.S. Federal Reserve cutting rates by 25 basis points at its Dec. 17-18 meeting after the data, compared with 68% earlier in the session. Nonfarm payrolls increased by 227,000 jobs last month after rising an upwardly revised 36,000 in October, in a month hit by hurricanes and strikes. Economists polled by Reuters had forecast payrolls accelerating by 200,000 jobs.

"Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling," Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management, said. "This print doesn't kill the holiday spirit and the Fed remains on track to deliver a cut in December," Rosner added in an email. Two of Wall Street's three main stock indexes were up after the data. The Dow Jones Industrial Average fell 0.23%, to 44,664, the S&P 500 rose 0.22%, to 6,088 and the Nasdaq Composite added 0.7%, to 19,838. The U.S. dollar index ticked up 0.3% to $106.05 following the jobs report. Treasury yields dipped after the data, with the yield on benchmark U.S. 10-year notes down 2.3 basis points to 4.159%, while the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 4.4 basis points to 4.102%.

European shares eked out gains

on Friday, with French stocks logging their biggest daily rise in three weeks as investors factored in a potential budget despite ongoing political uncertainty, while also parsing an upbeat U.S. jobs report. The pan-European STOXX 600

.STOXX was up 0.1%, logging its seventh consecutive day in advances and its strongest weekly performance in ten. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan reversed earlier losses to be up 0.2% thanks to a rally in Chinese shares, making up for investor caution around political ructions in South Korea. Chinese shares had climbed to three-week highs as investors scooped up technology shares ahead of a top-level policy meeting next week that will set the agenda and targets for China's economy next year. The risk premium investors demand to hold French debt rather than German Bunds dropped to a two-week low on Friday, after President Emmanuel Macron said he would appoint a new prime minister soon to get a 2025 budget approved by parliament. The euro had rallied on Thursday, on market relief that France had avoided a more volatile political outcome for now. The euro was last down about 0.4% at $1.054.

BITCOIN REVERSAL Bitcoin, which hit the $100,000 mark for the first time on Thursday as investors bet on a friendly U.S. regulatory shift, initially ran into profit-taking, tumbling as far as $92,092. Prices then rebounded, last trading up 2.5% on the day at $101,475. "This spike in volatility over the last 24 hours has the hallmarks of a classic blow-off top," said Tony Sycamore, analyst at IG.

Oil prices fell around 1% and were headed for weekly losses as analysts projected a supply surplus next year on floundering demand despite an OPEC+ decision to delay output hikes and extend deep production cuts to the end of 2026.

Gold prices inched up

on Friday to $2,636 an ounce.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)