Stocks Rise, Gold Tops $3,800 as Traders Bet on Fed Rate Cuts Ahead of Jobs Data – Europe Market Wrap

Stocks rose at the start of a week that will be dominated by a series of labor market reports, with traders betting the data will reinforce expectations for US interest rate cuts. Gold set a fresh record.

Futures for the S&P 500 climbed 0.5%, keeping the benchmark set for its best September since at least 2013, even as the month is typically difficult for stocks. Gold surged beyond $3,800 an ounce, lifted by a back-to-back drop in the US dollar and the risk of a looming US government shutdown.

Treasuries rose across the curve, with the 10-year yield falling three basis points to 4.14%. UK gilts also advanced.

A busy week of data releases will culminate in Friday’s nonfarm payrolls report, as traders price in two Federal Reserve rate cuts by January to support the labor market. In the mix is the risk of a US government shutdown amid an impasse in Congress that could delay some releases.

Friday’s payrolls report is expected to show that the US economy added 50,000 jobs in September, in line with the average from the past three months. The jobless rate is projected to hold steady at 4.3%.

Before then, Tuesday’s JOLTS report is expected to show a decline in job openings, while Wednesday’s data on company hiring is likely to confirm a further slowdown. Fed policymakers including Christopher Waller, Musalem and Bostic are due to speak Monday.

Top congressional leaders will meet with President Donald Trump at the White House a day before federal funding would expire if the two parties can’t agree on a short-term spending bill. The bill would only fund the government until mid-November and must pass before October 1.