Saturday, 7 November 2015

US employment surges, December rate hike looking likely

US nonfarm payrolls increased 271,000 in October, the biggest this year, the Labor Department reported on Friday. The jobless rate fell to a seven-year low of 5 percent.

Stock investors shrugged off the news. Even as traders raised their expectations on a December rise in rates to a 68 percent chance from 56 percent, the S&P 500 dipped less than 0.1 percent.

“The report is pretty good across the board,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. “December is now a very high likelihood for the Fed to hike rates.”

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