Job creation in the US has beaten expectations, with Non-farm payrolls rising by 200,000 over the consensus forecast of 180,000, whilst wage growth has risen 2.9% year on year. The pace of wage inflation has increased to the fastest rate since 2009, helping to reinforce the case for the three expected rate hikes from the Federal Reserve in 2018 and also raising the possibility of further hikes. US sovereign bonds are being sold as the news is digested as the prospect of higher than expected interest rates makes current yields from US treasuries less attractive. The US Dollar has, on the other hand, seen gains after steady declines throughout most of January. US equity markets, despite the positive jobs data, are set to see their worst week of trading since 2016 and are down again on the day.
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US leads global equity sell-off
US leads global equity sell-off