The latest jobs report takes the pressure off the monetary policy turmoil. The interest rate concerns that have recently been picking up in strength may have lost some of their sharpness. The cooling of the US labor market is likely to be seen primarily by investors as a sign of relief. In the new trading week, optimism and caution are likely to remain in balance. The oil price and bond yields are likely to remain the key factors that the stock market will be watching closely.

DAX

US job market loses momentum – US interest rate concerns lose momentum

The US labor market cooled significantly compared to the previous month in September. Only 29,000 new jobs were created outside the agriculture sector, significantly less than economists had expected (90,000 units) following the most recently revised figure of 133,000 units in August (previously: 162,000). For July, the increase in job creation was revised downward to minus 10,000 (previously: 21,000 units).

The ADP employment data had already signaled a cooling in private sector employment. Thus, only 90,000 new jobs were created in September. At the same time, the increase from August had been revised downward to 36,000 units. Also, contrary to expectations, the separately calculated unemployment rate rose by 0.1 percentage points to 4.2 percent. Economists had previously expected a status quo of 4.1 percent.

The latest US job data is also reflected directly in the interest rate expectations of market participants. According to the „Fed-Watch Tool“ of the CME Group, 79.5 percent of market participants now expect a pause in interest rates at the meeting on October 28, and 20.5 percent expect an interest rate hike.