Strong U.S. jobs report brings Fed tapering nearerSYDNEY, Aug 9 - Global shares treaded water on Monday as sharp falls in gold and oil prices briefly spooked sentiment, while the dollar reached four-month highs on the euro after an upbeat U.S. jobs report lifted bond yields.
Brent also sank 2% on concerns the spread of the Delta variant of the coronavirus would temper travel demand. The U.S. Senate came closer to passing a $1 trillion infrastructure package, though it still has to go through the House. However, the pace of tapering was still up in the air and would decide when an actual rate increase came, he said. The Fed is buying $120 billion of assets a month, so a $20 billion taper would end the programme in six months whilst a $10 billion tapering approach would take a year.
There are four Fed officials speaking this week who will no doubt offer enough grist for markets looking for clues on the timing of tapering. "Guidance is stronger than average but consensus estimates for two-year growth suggest a slowdown amid macro concerns."
good luck
SanctionsOnPakistan
Gold slide? Hmm.