Global Markets React to U.S. Jobs Data and UK Political Shift

Global stocks saw a rise and U.S. Treasury yields dipped following jobs data that increased expectations for a Federal Reserve rate cut. The Dow remained flat, while S&P 500 and Nasdaq advanced. UK stocks fell after Keir Starmer's election victory. Oil and gold prices rose, while bitcoin saw a significant drop.

Global stocks rose while U.S. Treasury yields dipped on Friday, following highly anticipated jobs data that boosted market expectations of a Federal Reserve interest-rate cut. U.S. job growth slowed to a still-healthy pace in June with the unemployment rate rising to 4.1%, suggesting the Fed could start cutting rates as inflation slows.

MSCI's global stock gauge climbed 0.19% to 816.72, marking a record high. On Wall Street, the S&P 500 and Nasdaq advanced, whereas the Dow remained nearly flat. 'Our overall thesis for the economy right now is one that's cooling but not weak,' remarked Keith Lerner, Co-Chief Investment Officer at Truist Advisory Services in Atlanta.

The Dow Jones Industrial Average fell 0.06% to 39,285.43, the S&P 500 gained 0.35% to 5,556.67, and the Nasdaq Composite rose 0.82% to 18,337.40. Benchmark 10-year Treasury yields slid following the closely watched jobs data, with the yield on 10-year U.S. notes dropping 7.1 basis points to 4.276%.

UK stocks, however, ended lower after Keir Starmer's rise to Prime Minister following a sweeping general election victory for Labour Party after 14 years of Conservative governance. The FTSE 100 index fell by 0.45%. Europe's STOXX 600 index dipped 0.18%, with market focus shifting toward the upcoming French legislative election.

In currency markets, the dollar index slipped slightly. Meanwhile, sterling strengthened post-election, the euro rose ahead of the French vote, and the dollar weakened against the yen before paring losses. The dollar index fell 0.21% to 104.94, sterling rose 0.39% at $1.2807, and the euro increased 0.17% to $1.0828.

Oil prices reached their highest levels since late April, buoyed by strong summer fuel demand and potential supply disruptions. Brent crude futures rose 0.13% to $87.54 a barrel, while U.S. WTI crude futures gained 0.27% to $84.11.

Gold prices also ascended to their highest level in a month as the U.S. dollar weakened. Spot gold increased by 1.23% to $2,385.12 an ounce, while U.S. gold futures went up 0.8% to $2,378.60 an ounce. Conversely, bitcoin experienced its biggest weekly fall in over a year due to concerns over potential token dumping from the defunct Japanese exchange Mt. Gox, falling 2.90% to $56,637.00, while Ethereum dropped 4.81% to $2,991.4.

(Disclaimer: With inputs from agencies.)