Saturday, 4 June 2016

US stocks fall on weak jobs report

A weak employment report pushed US stocks down on Friday.

The S&P 500 fell 0.3 percent after a report from the Labr Department showed that nonfarm payrolls rose 38,000 in May, the smallest gain since September 2010.

The STOXX Europe 600 fell 0.9 percent.

Earlier on Friday, both the Nikkei 225 and the Shanghai Composite Index rose 0.5 percent.

The US 10-year Treasury yield fell to 1.707 percent from 1.811 percent on Thursday as federal-funds futures placed the odds of a rate increase at the Federal Reserve’s June meeting at 4 percent, down from 21 percent before the jobs report.

The weak employment report also came as economists at JPMorgan see the probability of a recession occurring within the next 12 months at the highest in the current economic expansion.

"Our preferred macroeconomic indicator of the probability that a recession begins within 12 months has moved up from 30% on May 5 to 34% last week to 36% today," JPMorgan's Jesse Edgerton wrote. "This marks the second consecutive week that the tracker has reached a new high for the expansion."

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