Nonfarm payrolls grew by 29,000 against forecasts of around 84,000, and the unemployment rate ticked up from 4.1% to 4.2%, the Bureau of Labor Statistics reported. July and August were revised down by a combined 60,000 jobs.
why it mattersThe miss all but removed an October Fed hike from market pricing, though futures still lean toward a December move.
Bureau of Labor Statistics
Eurostat's flash estimate put September inflation at 3.8%, up from 3.2% in August and above the 3.7% consensus. Energy prices rose 18.8% year on year, up from 14.3%, while services inflation edged up to 3.2%.
why it mattersAn energy-driven overshoot puts the ECB under pressure to tighten into a slowing economy.
Eurostat
The benchmark yield closed at 5.281% on Friday, within sight of the 24-year high set earlier in the week on energy-driven inflation and Brent above $100. The weak jobs report cut the odds of an October hike to about 17% on CME FedWatch but left December above 75%.
why it mattersLong rates near multi-decade highs with a hike still priced mean the cost of capital is not coming down soon; plan for it rather than for relief.
CNBC