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(Bloomberg) – US stocks rallied for the fourth day after adding weak job data to US Federal Reserve bets that will lower rates. Treasury yields and the dollar have fallen.
The S & P 500 index was on the pace of its best week since November, speculation about the Fed's economic consolidation being expected after the release of a report showing that employers have added the fewest workers in three months and wage gains cooled. Technology stocks led the advance as banks fell. The two-year bond yield has seen its longest weekly decline since 2016. The peso continued its uptrend after President Donald Trump declared that there was "a good chance" that the United States enter into an agreement with Mexico.
Read: What Wall Street sees in the "fight to the rope" for the Fed in payroll data
Traders have aggressively increased their bets on rate cuts by the Fed after a series of weak reports indicating that the world's largest economy is slowing. Earlier in the week, President Jerome Powell said he was open to an easier policy in the face of trade tensions. Futures of federal funds show a quarter point cut almost fully integrated with the July price and indicate a easing of about 70 basis points by the end of 2019.
"The days of" Fed Put "are back, investors view bad economic data as good news for stocks," said Chris Gaffney, president of global markets at TIAA Bank. "The numbers were not necessarily serious enough to force the FOMC to make a decision later this month, but I think President Powell will continue to sound more dovish. The chances of a rate reduction by the end of the year have increased.
Investors have also followed the latest developments in trade, according to a senior White House contributor, who announced that the United States planned to issue a pre-clearance notice on the entry into force of tariffs on Mexico, but that President Trump may decide to postpone the decision this weekend. The administration also said that it would delay tariffs on some Chinese products for a week.
Read: Fed observers say interest rate will be cut in July, June is unlikely
In the company's news, Beyond Meat Inc. hit a record after the forger's sales forecast exceeded estimates. Online fashion retailer Revolve Group Inc. made its debut in the business after raising $ 212 million in an IPO.
Elsewhere, the offshore yuan has fallen to its lowest since November, before mitigating losses, the governor of China's central bank said that there was a "big" room for maneuver to adjust monetary policy. Oil rose while Saudi Arabia and Russia reiterated their commitment to avoid a global overabundance of supply.
Here are some notable events to come:
G-20 finance ministers and central bank governors are meeting in Fukuoka, Japan this weekend.
Here are some of the main movements in the markets:
stocks
The S & P 500 index climbed 1.3% to 2,880.41 at 1:20 pm. New York time. The Stoxx Europe 600 index rose 0.9%. The MSCI Asia-Pacific Index rose 0.5%.
Coins
The Bloomberg Dollar Spot Index fell 0.3%. The euro rose 0.5% to 1.1335 USD. The Japanese yen rose 0.3% to 108.11 per dollar.
Obligations
The yield on 10-year Treasuries declined five basis points to 2.07%. Germany's 10-year yield fell two basis points to -0.26%. Britain's 10-year yield declined by one basis point to 0.813%.
Basic products
The Bloomberg Commodity index fell 0.1%. West Texas Intermediate crude oil increased 1.8% to $ 53.52 per barrel.
– With the help of Cormac Mullen, Adam Haigh, Namitha Jagadeesh, Yakob Peterseil, Sophie Caronello, Andrew Cinko and Sarah Ponczek.
To contact the reporters on this story: Rita Nazareth in New York at [email protected] Vildana Hajric in New York at [email protected]
To contact the makers of this story: Jeremy Herron at [email protected], Rita Nazareth
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