LONDON: US and European stock markets sank on Friday in response to drastically poorer than expected US jobs numbers which weakened the case for a rise in Federal Reserve interest rates this year.
The payrolls numbers showed hiring outside of farming of just 142,000 last month, short of a consensus forecast of 203,000, while August figures were revised sharply lower to show only 136,000 jobs were added a month earlier.
Europe's major stock markets, which had been up around 1.5 percent on the day, fell back into negative territory while futures showed Wall Street would fall around 1 percent on opening.
That all came at the end of what has already been a wild week for markets due to concerns over China, commodities prices and related stocks like Glencore.
The dollar also fell sharply against all its major peers, down 0.9 percent on the day against the euro and 0.6 percent against the yen.
"Aside from the NFP miss, average hourly earnings totally missed expecations," said one trader.
US 10-year Treasury yields fell 10 basis points to 1.94 percent while 10-year German Bund yields fell to 0.51 percent, their lowest since June 1.
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