U.S. payrolls data cements market bet on Fed rates pause

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LONDON, Sept 1 - Global shares extended their gains on Friday after U.S. payrolls data showed a rise in unemployment and moderation in wage growth last month, helping to cement market bets that the Federal Reserve is done with raising interest rates.

"This should spur further U.S. dollar weakness and moderating bond yields from cycle peaks which will help equities grind higher from here," said John Leiper, chief investment officer at Titan Asset Management. Investors also drew some comfort from an unexpected rebound in China manufacturing and signs that a downturn in euro zone manufacturing eased last month.

There are also doubts that the European Central Bank would hike rates when it meets this month as the euro zone economy sags, analysts said. 'PROACTIVE' CHINA All eyes are on Beijing's efforts to revive the crisis-hit property sector and weak consumption, which are weighing heavily on the Chinese economy.

 

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