The US jobs report increases Fed rate cuts
On Friday, the all-important US Jobs Report raised investor expectations for Fed rate cuts in November and December. While the U.S. unemployment rate remained at 4.1% in October, nonfarm wages rose by just 12,000, down from 223,000 in September. A weaker labor market could impact wages, dampening consumer spending and demand-driven inflation.
According to the CME FedWatch Tool, the probability of a Fed rate cut in December increased by 25 basis points to 4.25% from 71.1% on October 31 to 82.7% on November 1. The Jobs Report reinforced expectations for a 25 basis point Fed rate cut on Thursday, November 7.
Friday’s US Jobs Report and gains in US stock markets set the tone for Asian markets on Monday.
The National People’s Congress Standing Committee starts
Monday, November 1 will be the focus of the long-awaited National People’s Congress Standing Committee. Markets expect stimulus measures aimed at consumer consumption to strengthen the Chinese economy. New policy measures to support demand could fuel investor appetite for listed equities from Hong Kong and mainland China.