GLOBAL MARKETS-Stocks Upbeat, Dollar Wobbles as Fed Hike Bets Recede
Investors now see a 22% chance of a Fed hike this month after softer US jobs data and sharp payroll revisions, the CME FedWatch tool said.
- On Monday, October 5, 2026, global stocks climbed as investors scaled back expectations for Federal Reserve rate hikes following cooler-than-expected US jobs data, with the MSCI Asia Pacific equities index rising 0.4%.
- Data released last week showed US job growth slowed in September, with non-farm payrolls for the prior two months revised sharply lower, reducing the likelihood of an aggressive policy tightening cycle by the Fed this month.
- Investors are now pricing in a 22% chance of a rate hike this month, compared to 64% a week ago, according to the CME FedWatch tool, while Japan's Nikkei rose 2.0% and Australian stocks added 0.5%.
- Consequently, the US dollar edged lower on Monday, while benchmark 10-year US Treasury yields retreated slightly to 5.2643% as traders reassessed the potential for immediate monetary policy tightening.
- The Fed will release September meeting minutes on Wednesday, which may reveal policymakers' concerns about underlying price trends, as the recent jobs report did not rule out further rate hikes in the coming months.
12 Articles
12 Articles
Japanese investors take courage and hope that the American Fed will not continue to touch its key interest rate. Meanwhile, the stock markets in China are closed.
Stocks upbeat, dollar wobbles as Fed hike bets recede - Regional Media News
By Rae Wee SINGAPORE, Oct 5 (Reuters) - Stocks were off to a strong start on Monday while the dollar edged lower and bonds steadied, as investors trimmed bets on an aggressive policy tightening cycle by the Federal Reserve following cooler-than-expected US jobs data. Trading [...]
Asian stock markets rose as U.S. employment market indicators fell short of expectations, lowering the likelihood of a Fed interest rate hike. In particular, the Japanese Nikkei and Taiwanese TAIEX indices surged by over 2%, revitalizing the market. However, instability in the bond market persisted as the U.S. 10-year Treasury yield remained in the 5% range.
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