New York - US stocks fluctuated with the dollar and Treasuries as a rebound in hiring added to optimism that the economy is on firm footing, boosting speculation the Federal Reserve will raise interest rates. Oil pared losses that took it below $44 a barrel.
The S&P 500 Index edged higher in early trading, headed for a third weekly advance though it remains mired in the tight range it’s held for the past seven sessions. The latest jobs report did little to alter views that the Fed is poised to raise interest rates next month, padding the dollar’s gain this week.
A slowdown in wage growth damped enthusiasm, leaving Treasuries little changed. The Euro Stoxx 600 Index advanced ahead of French presidential elections. Gold climbed from a seven-week low and iron ore fell for a third day.
“An increase for that June meeting is so locked in at this point, that it would have taken a major miss or blowout to move this market, and this was neither of those,” Matthew Peterson, chief wealth strategist at LPL Financial, said by phone.
“The biggest thing is that even though the number of jobs created was better than expected, the Fed is going to be more focused on whether we can get rising wages.”
Investors are parsing the report for clues on the pace of US monetary tightening after the Federal Reserve this week played down concerns about slow first-quarter growth, boosting expectations for an increase in June. In Europe, attention is still focused on the French presidential election on Sunday, with centrist Emmanuel Macron predicted to prevail over his anti-euro rival Marine Le Pen.
Here are key events and data releases due:
A host of Fed officials are due to speak on Friday, including Fed Chair Janet Yellen and her deputy Stanley Fischer Warren Buffett plans to take more than four dozen questions at his annual investor meeting Saturday, to be live-streamed from Omaha Voters in France go to the polls Sunday for the second round of presidential elections.
Here are the main moves in markets:
Stocks
The S&P 500 Index rose 0.2% at 14:36, after the underlying gauge rose 0.1% on Thursday. The Stoxx Europe 600 rose 0.1%. The Shanghai Composite Index was down 0.8% at 3 103 after earlier dropping below 3 100. The gauge neared its lowest close this year.
Currencies
The Bloomberg Dollar Spot Index was flat. The pound was little changed at $1.2929 following a gain of 0.4% on Thursday. The yen was steady at 112.49 per dollar. The euro advanced for the fourth week to trade within reach of $1.10, as France prepares to elect a president.
Commodities
West Texas Intermediate oil fell 0.2% to $45.43 a barrel; it tumbled to $43.76 earlier, the lowest since November 15 and first foray below $45 since OPEC agreed to cut output that month. Iron ore futures were down 6.3% after falling 5.3% on Thursday. Gold rose 0.3% to $1 232.05 an ounce.
Bonds
The 10-year US Treasury yield fell one basis point to 2.34% after climbing almost four basis points on Thursday. The rate has added eight basis points in the week. The yield on 10-year German government bonds was little changed at 0.38%.
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