World shares recover after US jobs report sell-off

• Published date: 09 August 2022
• Publication title: Daily Financial Times

Global stock markets gained ground on Monday, recovering from losses sparked by a strong US jobs report last week that bolstered the case for sharp interest rate hikes, while the dollar weakened and Government bond yields fell.

Markets quickly moved on Friday to price about a 70% chance that the US Federal Reserve would raise rates by 75 basis points in September, sending two-year yields up 20 basis points and further inverting the curve.

Yet the broad Euro STOXX 600 gained 0.8% in early trade on Monday, led by cyclical and growth stocks, helping recover losses from Friday driven by the US jobs report. Miners and technology stocks, hit hard in the previous week, led the gains.

The MSCI world equity index, which tracks shares in 47 countries, added 0.2%, recovering losses of the same amount seen on Friday.

SandP 500 futures and Nasdaq futures were up 0.5%...