India, Aug. 7 -- An unexpected decline in the U.S. non-farm payrolls in July dramatically dragged down rate hike expectations from the Federal Reserve, boosting overall market sentiment.
Data for July released on Friday morning by the U.S. Bureau of Labor Statistics showed a decline of 23 thousand in non-farm payrolls, versus a downwardly revised addition of 20 thousand in June. The unemployment rate, which was anticipated to remain steady at 4.2 percent also unexpectedly declined to 4.1 percent.
Rate hike expectations faded as markets digested the weak jobs data. The CME FedWatch tool that tracks the expectations of interest rate traders currently shows the likelihood of a Fed rate hike in September at 44 percent. It was 55 percent a day...