Live: Wall Street slips as bond yields rise, ASX treads water

Wall Street slipped after stronger-than-expected US jobs data pushed bond yields higher and reduced expectations that the Federal Reserve would leave interest rates unchanged this month.

The S&P 500 fell 0.4%, the Dow Jones Industrial Average lost 0.5% and the Nasdaq declined 0.3%. US non-farm payrolls increased by 162,000 last month, compared with forecasts for a 56,000 rise. July’s figure was also revised to a gain of 21,000, from an earlier report of a 23,000 decline. The unemployment rate remained at 4.1%.

Two-year Treasury yields, which are particularly sensitive to monetary policy, rose four basis points to 4.37%. The 10-year yield increased by nearly two basis points to about 4.78%. “Good news for the economy, but not such good news for those hoping the Fed will sit tight at the 16 September Board meeting,” IG Markets’ Tony Sycamore said.

ASX 200 futures showed little direction, with a fall of one point, or 0.01%, priced in. The Australian dollar was around 72.04 US cents, while the ASX 200 had closed the previous session 0.2% lower at 9,006 points.

Oil markets moved more decisively. Brent futures rose 0.8% to $US92.68 a barrel, while West Texas Intermediate gained 0.2% to $US91.48. Brent rose 8% over the week and US crude gained 10%. The continued movement of missiles and drones around the Strait of Hormuz supported the rally, which has added to inflation and government borrowing costs and intensified concerns about a possible slowdown in global growth. A meeting of Baltha creditors was also due to consider the fate of the collapsed construction firm, which owes $3.4 billion.

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Good news for the economy, but not such good news for those hoping the Fed will sit tight at the 16 September Board meeting.