The Softer Labor Market Figures Have Reduced Bets on Additional Monetary Tightening, Supporting Risk Appetite Across Global Markets

Global markets carried the positive momentum into the new week after weak U.S. employment data dampened expectations of further interest rate hikes by the Federal Reserve (Fed). The softer labor market figures have reduced bets on additional monetary tightening, supporting risk appetite across global markets. Analysts noted that the data reinforced views that the Fed may pause its rate hike cycle, providing a tailwind for equities and other risk assets.