Money market pricing just after the payrolls data implied traders saw the Fed only starting to cut rates from their 23-year high of 5.25-5.5 per cent by November. ― Reuters picNEW YORK, June 8 — Global stocks pulled back from an all-time high yesterday after surprisingly strong US monthly jobs data dimmed hopes that the Federal Reserve would soon follow euro zone and Canadian interest rate cuts, causing Treasury yields to shoot higher.
Diminished hopes for a near-term Fed move weighed on stocks, which closed lower after a choppy session. The MSCI’s world share index dropped 0.3 per cent, after touching a record high of 797.48 points. Money market pricing just after the payrolls data implied traders saw the Fed only starting to cut rates from their 23-year high of 5.25-5.5 per cent by November. US interest rate futures also lowered the chances of the Fed’s cutting rates by 25 basis points in September to 56 per cent, down from around 70 per cent on Thursday, according to LSEG’s Fedwatch.