USA: prospect of rate cut bolstered by employment figures
Commerzbank believes that even without the hurricanes and strikes, 'the numbers probably wouldn't have been impressive', and that the Fed is therefore 'likely to cut interest rates further, with the next decision due next Thursday'.
According to Mahmoud Alkudsi, senior market analyst at ADSS, this disappointing data 'could reassure the Fed that its chosen path of aggressive interest rate cuts has not stimulated the labor market too much'.
These weaker-than-expected job creations could prompt the Fed to follow through on the widely-anticipated 25 basis point cut at the end of its next meeting', he continues, adding that this would create more favorable conditions for equity markets.
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