Global stocks rise as dollar wobbles on cooler US jobs data

Stocks started the week strongly while the dollar slipped, as investors trimmed bets on further interest rate hikes by the United States Federal Reserve.
Cooler-than-expected jobs data last week showed American job growth slowed more than expected in September, with the previous two months’ payroll counts revised sharply lower. Investors now price in just a 22 percent chance of a Fed hike this month, down from 64 percent a week ago.
Japan’s Nikkei rose 2 percent early in the session, Australian stocks added 0.5 percent, and the broader Asia-Pacific index ticked higher. Trading was thin, with holidays in China, South Korea and parts of Australia.
In Brazil, markets were expected to jump after senator Flavio Bolsonaro’s stronger-than-expected first-round showing in the presidential election set up an October 25 runoff with president Luiz Inacio Lula da Silva.
Analysts caution that the risk of further employment losses means the Fed cannot keep raising aggressively. The next test will be how quickly rate expectations settle.
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