Oil Extends Gains, Jobs Report Lifts Wall Street

(@ChaudhryMAli88)

Oil extends gains, jobs report lifts Wall Street

Oil prices rose further Friday on fears Israel could strike Iranian crude facilities, while global stock markets mostly advanced on signs of continued strength in the US economy

London, (UrduPoint / Pakistan Point News - 4th Oct, 2024) Oil prices rose further Friday on fears Israel could strike Iranian crude facilities, while global stock markets mostly advanced on signs of continued strength in the US economy.

The US economy added 254,000 jobs last month, much more than August -- which itself was revised higher -- and way above expectations. The unemployment rate fell to 4.1 percent.

All the main US stock indexes were higher in morning trading, while London was flat and Paris and Frankfurt rose in afternoon deals.

The positive US jobs report is not likely to stop the Federal Reserve from continuing to trim interest rates now that inflation is coming under control, analysts said.

But it probably rule out a full 50-basis-points cut at the central bank's next meeting in a month's time, they said.

"With data coming in significantly stronger than anticipated, the Fed is likely to continue cutting rates at a slow and steady pace, with a 25-basis-point reduction in the November meeting being the most probable outcome," said Mahmoud Alkudsi, analyst at ADSS.

The dollar rose after the jobs report, which "put the nail in the coffin for talk" of another 50 basis point cut from the Fed, said Fawad Razaqzada, analyst at City Index and FOREX.com.