Commenting yields falling and further dollar weakness following US Nonfarm Payrolls data, Mike Owens, Global Sales Trader at Saxo Markets, said: “US Nonfarm Payrolls came in much weaker than expected for August. We saw bond yields fall and further US dollar weakness immediately after the release as the miss infers a later starting point for the FED to start tapering bond purchases.

“There was also a much higher than expected wages increase of +4.3% vs. +3.9% YoY, which pushes against the central bank narrative that current inflation is transitory. The readings should be market positive for equity prices in the short term, especially for high-growth and technology stocks, although we’re seeing little initial reaction from index futures.”