US stocks, bonds rally after soft jobs report; yen bounces back

By Amanda Cooper

LONDON, Aug 7 (Reuters) - Global stocks headed for their strongest play summation since May aft a weaker-than-expected U.S. jobs study eased fears of an imminent Federal Reserve complaint hike, portion beardown net and AI enthusiasm ‌outweighed concerns astir the Iran war.

U.S. stocks opened higher connected Friday and Treasury yields fell, reflecting ebbing expectations that the ‌Fed volition rise rates astatine adjacent month's meeting.

The Nasdaq roseate 0.7% successful aboriginal trading and the dollar fell, giving the Japanese yen a reprieve. The yen strengthened ​to 157.20 per dollar aft earlier nearing 159, a level wide seen arsenic a imaginable trigger for argumentation intervention.

MSCI's All-World scale has risen 2.4% this week, the astir successful 3 months, and was dependable connected Friday. Europe's STOXX 600 was up 0.6% connected the time and 2% for the week, led by gains successful healthcare and exertion shares.

The U.S. payroll study showed employment fell by 23,000 jobs, confounding expectations successful a ‌Reuters canvass for an summation of 80,000. ⁠Analysts said the information gave the Fed much country to support rates unchanged adjacent period portion assessing upcoming economical indicators, including adjacent week's U.S. ostentation report.

"History doesn't repeat, but sometimes it rhymes," said Lindsay Rosner, caput ⁠of multi-sector fixed-income investing astatine Goldman Sachs Asset Management successful New York. "For the 3rd clip successful arsenic galore years, July jobs information saw a mid-summer nonaccomplishment of momentum. While incoming ostentation information volition beryllium the eventual arbiter, slowing jobs maturation helps enactment a September hold."

TRADERS SPLIT ON FED RATE ​RISE

Money ​markets had been evenly divided connected the prospects of a Fed complaint ​increase adjacent period earlier the payrolls report. After the ‌data, the implied probability of a hike fell to astir 40% from astir 55% earlier.

"With yields and ostentation inactive the cardinal risks for stocks, we expect Friday's NFP to commercialized arsenic a 'good quality is atrocious news' print," said Michael Feroli, main U.S. economist astatine JPMorgan.

Conflict successful the Middle East flared up again aft Yemen's Iran-aligned Houthis attacked Saudi Arabia, a large lipid exporter. Riyadh warned that coordinated attacks by the Houthis and Iran-backed Iraqi militias were imminent.

Brent crude futures reversed people connected Friday to autumn 0.7% to astir $82 a barrel, ‌as investors mostly shrugged disconnected Saudi Arabia's warnings.

Iran, meanwhile, is reviewing a preliminary ​bill that would barroom U.S., Israeli and different "hostile" vessels from transiting the Strait ​of Hormuz, Iran's semi-official Fars quality bureau reported connected ​Thursday, citing a lawmaker. The draught measure would enforce fines of up to 20% of a ship's cargo ‌value for violations.