Asian shares rose on Monday and the dollar stood tall after a stronger-than-expected July jobs report lifted confidence in the strength of the U.S. economy – heightening expectations that the U.S. Federal Reserve could hike interest rates this year. July nonfarm payrolls rose by 255,000 jobs and the June increase was revised upward to 292,000, the Labor Department said. Economists polled by Reuters had forecast July payrolls would increase by 180,000. “The robust U.S. labor market data raise the chances for monetary policy normalization by the Fed, but uncertainties for the U.S. remain high as well,” wrote strategists at
After the U.S. jobs report, Fed fund futures priced in an 18 percent chance the central bank would raise rates as early as its September policy meeting, from 9 percent late Thursday, according to the CME’s FedWatch tool. Futures showed about a 47 percent chance of a December hike, compared with about 32 percent on Wednesday last week.
Spot gold XAU= shed 0.1 percent to $1,333.26 an ounce, a low not seen since July 29.
Crude oil futures, which ended modestly lower on Friday, rose in early trading. U.S. crude CLc1 added 0.6 percent to $42.03 a barrel, while Brent crude LCOc1 was up 0.4 percent at $44.45.
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