Global Markets React to Mixed U.S. Jobs Report, Interest Rate Speculations

MSCI's global equities and U.S. Treasury yields fell after a mixed U.S. jobs report, cementing expectations for a Federal Reserve interest rate cut. Investors remain unsure about the cut's size. Wall Street indexes dropped, the dollar index edged up, and the bond market showed mixed reactions.

MSCI's global equities gauge and U.S. Treasury yields fell on Friday after a mixed U.S. jobs report solidified expectations for a Federal Reserve interest rate cut this month. The Labor Department reported that U.S. employment increased less than expected in August, indicating an orderly slowdown.

Non-farm payrolls rose by 142,000 in August, falling short of the 160,000 growth economists expected. "It just looks like things are slowing down a bit, not like something cataclysmic is imminent," said Matt Rowe, head of portfolio management at Nomura Capital Management.

Post-report, traders increased their bets on a 25 basis point rate cut, with Federal Reserve Bank of New York President John Williams expressing favor for a rate cut but withholding specifics. Wall Street indexes initially rose but later declined, and the bond market showed mixed reactions.

(With inputs from agencies.)