Global stocks moved indecisively and the dollar retreated Friday as markets digested a mixed US employment report that showed moderating jobs growth but solid wage increases.
The government figures had been eagerly awaited by investors as a gauge whether the Federal Reserve will need to raise interest rates once or twice again this year in order to bring down inflation.
The world’s biggest economy added 209,000 jobs last month, down from a revised figure of 306,000 in May. The employment figure was below the median expectation of 240,000 new jobs in a survey of economists conducted by MarketWatch.
Briefing.com analyst Patrick O’Hare said what the “report won’t change is the Fed’s view that additional tightening action is likely going to be appropriate.”
While the data fits the narrative of a soft landing of the US economy from the impact of interest rate hikes, the Fed will unlikely be reassured by growth in average hourly earnings accelerating.
The jobs number “was not stellar, but it was certainly solid,” said Quincy Krosby of LPL Financial.
Futures markets see near certainty that the Fed will again raise interest rates later this month.
Major US indices finished modestly lower following a rollercoaster session, with the S&P 500 ending down 0.3 percent.
But the dollar deepened losses against major rivals following the jobs data, while yields on US government bonds also fell.
“The US dollar had already been looking a little on the soft side leading into today’s jobs numbers, so the slightly softer headline number, along with the slide in yields has helped to push it even lower to the lowest levels this month,” said CMC Markets analyst Michael Hewson.
European markets closed mixed, with London finishing lower while Paris and Frankfurt rose.
Traders were also keeping tabs on China, where US Treasury Secretary Janet Yellen held talks with top policy officials in efforts to smooth strained ties between the economic superpowers.
Yellen told Chinese Premier Li Qiang that the United States was not seeking “winner-take-all” competition.
Li said Beijing could see the relationship recovering after a difficult period.
Key figures around 2030 GMT
New York – Dow: DOWN 0.6 percent at 33,734.88 (close)
New York – S&P 500: DOWN 0.3 percent at 4,398.95 (close)
New York – Nasdaq: DOWN 0.1 percent at 13,660.72 (close)
London – FTSE 100: DOWN 0.3 percent at 7,256.94 (close)
Frankfurt – DAX: UP 0.5 percent at 15,603.40 (close)
Paris – CAC 40: UP 0.4 percent at 7,111.88 (close)
EURO STOXX 50: UP 0.3 percent at 4,236.60 (close)
Tokyo – Nikkei 225: DOWN 1.2 percent at 32,288.42 (close)
Hong Kong – Hang Seng Index: DOWN 0.9 percent at 18,365.70 (close)
Shanghai – Composite: DOWN 0.3 percent at 3,196.61 (close)
Euro/dollar: UP at $1.0970 from $1.0889 on Thursday
Pound/dollar: UP at $1.2836 from $1.2740
Dollar/yen: DOWN at 142.08 yen from 144.07 yen
Euro/pound: DOWN at 85.44 pence from 85.47 pence
Brent North Sea crude: UP 2.5 percent at $78.47 per barrel
West Texas Intermediate: UP 2.9 percent at $73.86 per barrel
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