Reuters: US Dollar Report: GLOBAL MARKETS-Dollar tumbles, share gain after disappointing U.S. jobs data

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GLOBAL MARKETS-Dollar tumbles, share gain after disappointing U.S. jobs data Oct 22nd 2013, 13:32 Tweet Share this Email Print Reprints Tue Oct 22, 2013 9:32am EDT * U.S. jobs data misses expectations, 148,000 vs poll of 180,000 * Dollar slides vs euro, yen adding to recent battering * U.S. stock futures edge up, bonds make ground on Fed support hopes By Marc Jones LONDON, Oct 22 (Reuters) - The dollar hit an eight-month low and shares and bonds gained on Tuesday on the back of the weak U.S. jobs figures that pre-dated this month's acrimonious budget tussle. With U.S. employers adding 148,000 new positions in September versus the 180,000 expected by economists polled by Reuters, worries increased that the world's largest economy was losing momentum even before this month's political disruption. The figures raised expectations the Federal Reserve will keep its stimulus at full well into 2014. The dollar tumbled to a new eight-month low against a basket of major currencies shortly after the data, including a two-year trough of $1.3748 to the euro, while yields on benchmark U.S. Treasuries fell to the lowest in three months. The prospect of a longer spell of super-easy money from the Fed also meant share made gains. European shares added around 0.3 percent and stock futures for the S&P 500 and Dow Jones Industrial went from flat to up 0.25 percent. "Full bore quantitative easing will probably be with us through the first quarter and speculation for an increase may be no further away than another weak payrolls number," said Joseph Trevisani, chief market strategist at WorldWideMarkets in New Jersey. The dollar has borne the brunt of the recent volatile U.S. conditions, firstly after the Fed opted against cutting its stimulus in September and then as the budget spat and 16-day shutdown in Washington pushed the country close to a default. By 1300 GMT the dollar index was down 0.26 percent at 79.473 and back flat against the yen, at 98.14 yen after spending most of Asian and European morning trade in positive territory. Many analysts had already been expecting the Fed to maintain its quantitative easing (QE) given the likely economic impact of this month's fiscal spat and the prospect of another bitter budget fight early next year, but the data firmed the view. "This report definitely gives the Fed pause. It keeps QE alive and bonds will like it and so might stocks. This is positive for all asset prices," said Craig Dismuke, chief economic strategist with Vining Sparks in Tennessee. It was a similar story for commodities. Gold, surged 1.3 percent to a session high of $1,331 an ounce, copper climbed to $7,310 a tonne, while U.S. and Brent crude prices pushed to $99.26 and $110.60 a barrel respectively after rising stockpiles of oil saw U.S. prices hit near four-month lows on Monday. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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