New Delhi: According to fresh US data, the economy is not doing too badly on the job front. The US economy added more jobs, over what was estimated by the market, for the month of September.
There were 1.10 Lakh jobs added in September, contrary to the market estimate of 1 Lakh jobs for Non-Farm Payrolls. Also in the due course the US Dollar has firmed up, even though there was a slip in the gold prices. This means there might not be another rate cut by the US fed reserve.
Payrolls grew by 110,000 after an 89,000 increase in the previous month, the Labor Department said today in Washington. The change to the August figure wiped out what had been the first decline in four years, a drop that spurred predictions the six-year expansion would come to end amid the credit-market rout.
Treasury notes fell as traders speculated that the central bank, which reduced borrowing costs by half a point on Sept. 18, will resist lowering them at the next meeting. Analysts said more jobs and rising wages will help consumers weather falling home prices, sustaining the spending that accounts for more than two-thirds of the economy.
"It certainly doesn't look like an economy that's losing momentum,'' said John Ryding, chief US economist at Bear Stearns Cos. in New York. ``The Fed will move to the sidelines or else it'll become much more apparent that the Fed was cutting for financial stability reasons and not the real economy.''
The yield on the benchmark 10-year Treasury note climbed 13 basis points to 4.64 percent at noon in New York. Futures traders put the chances of a reduction in October at 46 percent, down from 72 percent yesterday, based on prices at the Chicago Board of Trade. Stocks rallied. A basis point is 0.01 percentage point.
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