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London - Financial markets started the month on an uncertain footing after a dramatic November, with the dollar retreating from a nine-month high, Treasuries falling and oil swinging between gains and losses near $50 a barrel.
The US currency declined against most of its 16 major peers before a payrolls report on Friday that will provide clues on the pace of interest rate increases.
A measure of euro volatility jumped to the highest since before the Brexit vote as investors brace for Italy’s referendum and Austria’s presidential election on December 4 and the European Central Bank’s policy decision in a week’s time.
The slump in Treasuries extended the biggest climb in 10-year yields since 2009. Oil was little changed after a more than 9% rally on Wednesday.
Friday’s official US payrolls data is the next focal point, after ADP Research Institute reported the biggest increase in private-sector workers since June.
Oil has rallied after OPEC agreed to cut output, providing further support for so-called reflation trades after Donald Trump’s election as US president added to expectations for fiscal stimulus and Federal Reserve rate increases.
The dollar weakened 0.2% to ¥114.23 at 11:18, after climbing 1.9% on Wednesday. The yield on 10-year Treasuries increased three basis points to 2.41%, and oil slipped 0.1% to $49.38 a barrel in New York.
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