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US labour market data weak, unemployment rate rises to 3.9%

The US non-farm payrolls data published today failed to fulfil analysts' expectations. The unemployment rate also rose by 0.1% to 3.9%. While the US dollar is experiencing pressure, stocks and indices are benefiting from developments on the US labour market.

The figures in today's report on the labour market in the United States show that it may be less robust than the Fed announced after its meeting last Wednesday. Although the forecast of 180,000 new jobs created was already considerably more modest than in previous months, the actual figure of only 150,000 new jobs was significantly lower. At the same time, the previous month's figure had to be revised downwards by 39,000 jobs. Expectations for average hourly wages and weekly working hours were also not met. The only sector that was able to create new jobs was the public sector, with 51,000 new positions. In industry, on the other hand, 35,000 jobs were lost.

The US dollar came under pressure following the publication of the data and is currently trading around the 1.07 mark against the euro. US indices, on the other hand, reacted positively to the figures and were able to extend their recovery following the publication. The poor figures from the labour market are clearly diminishing fears of a further interest rate hike by the US Federal Reserve, as they can be seen as a sign that high interest rates are having an increasingly negative impact on the economy. 

Yields on US Bonds are also continuing to fall, which could have a positive impact on the stock market. In recent weeks, they have often been blamed for the fall in share prices, as many investors have fled from riskier shares in favour of safe bonds with high yields. Despite the poor figures, the US economy can still be considered relatively stable. However, they are an important indicator that the Fed's cycle of interest rate hikes may have come to an end.

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