us labor market data boosts interest rate cut expectations amid government crisis

The trading week ended with record-breaking numbers, as investor interest was reignited by US labor market data. There is optimism surrounding potential interest rate cuts from major central banks, including the Federal Reserve and the European Central Bank.

The latest figures show that 227,000 new non-farm jobs were created in the US, surpassing expectations of 200,000. The unemployment rate remained steady at 4.2 percent, in line with forecasts. Wage growth has also increased, which has raised concerns for the Fed.

Market sentiment is boosted by the CME Group's "Fed Watch Tool," which indicates an 85.1% probability of a 25 basis point rate cut by the Fed on December 18. This is up from 71% earlier in the week. In France, the political landscape remains turbulent as the government faces a crisis following a vote of no confidence. Despite the upheaval, President Emmanuel Macron has expressed his intention to remain in office, which is expected to keep investors on alert in the upcoming trading sessions.

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