Dollar swings up, stocks dip after solid US jobs data

08/08/2015 08:25 AST

The dollar gained and Wall Street stock futures extended losses as US jobs data came near enough to expectations to bolster bets the Federal Reserve will raise rates for the first time in nearly a decade this year.

The data showed 215,000 jobs were added in July, slightly below a Reuters poll of 223,000 jobs, but the unemployment rate held at a seven-year low of 5.3 per cent and there were signs that wages were beginning to pick up.

US stock futures extended earlier losses, dropping 0.2 per cent on the day. The Dow Jones Industrial Average was set for its seventh day of losses — its worst run in four years.

The US dollar jumped against a basket of other currencies, climbing 0.4 per cent on the day to a four-month high of 98.271.

US. Treasury yields were flat at 2.23 per cent as were European benchmark German yields.

European stocks moved up slightly after the data, although the index remained down 0.3 per cent on the day.

The prospect of higher rates has made non-interest-bearing gold less attractive. It was set to record its longest weekly losing streak since 1999 on Friday.

“It’s another solid report overall. If you thought that the Fed was going to go in September this report would suit that thematic nicely,” said Tom Porcelli, chief US economist at RBC Capital Markets in New York. “I don’t think anything has changed in that regard. I think it’s another step toward the eventual lift-off.” Oil extended its fall on the day as it faced its sixth consecutive week of losses, the longest run since the start of the year. Brent crude was down 0.7 per cent at $49.17 (Dh180.5)

Reuters