US jobs report puts Fed hike expectations on ice
Small increase in non-farm payrolls leads market to all but write off prospect of June hike
Market expectations of a Federal Reserve rate hike this month have dropped after a patchy spell of data was capped with a disappointing US jobs report on June 3.
Non-farm payrolls grew by just 38,000 in May, while the figures from April and March were cut by a combined 59,000. Average monthly growth over the period was 116,000, compared with 220,000 a month in the 12 months to February.
Nonetheless, the unemployment rate dropped to 4.7%, though this partly reflected a drop in the labour force
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