FTSE 100 surges 2.2pc and pound climbs as hopes of Fed rate hike fade after tepid US jobs data
Even though US jobs disappointed this afternoon, Marcus Bullus, trading director at MB Capital, still thinks a September rate hike is still on the table.
“After this mildly disappointing August print, a rate hike in September is less likely but it’s still on the table.
“Despite the weaker than expected headline number, Janet Yellen may yet decide to try and get ahead of the curve. An incremental and controlled tightening cannot be ruled out.
“What the Fed doesn’t want is to be playing catch-up and having to hike more sharply, which could leave the economy looking vulnerable. The markets were largely agnostic about the August print but there is likely to be a degree of limbo between now and the Fed’s decision later this month.”