Stocks and Bonds Rally as Energy Prices Fall and US Job Growth Disappoints

US stocks and bonds are rallying this morning, fuelled by falling Energy prices and a weaker-than-expected US employment report. Speculation that Europe may soon release Oil and Diesel stockpiles is weighing on Energy markets, while disappointing job growth is adding to expectations of easing pressure on central banks to raise interest rates. Treasury yields and the US Dollar are falling in response.

US nonfarm payrolls increased by 29K, well below Street expectations of 90K. The previous month’s gain was also revised down to 133K from 162K.

NASDAQ futures are up 1.1%, while Dow futures have gained 0.9%. European equities are advancing, with the DAX up 1.0% and the FTSE up 0.2%, following overnight declines of 1.0% for the Nikkei and 2.6% for the Hang Seng.

Crude Oil is down 3.3%, falling below $90.00/bbl, while Brent Crude has declined 2.4%, slipping below $100.00/bbl. Gasoline is down 3.2%, holding above $3.25/gallon. Metals are moving higher, with Gold up 0.2% above $4,200/oz, Copper up 0.4% above $6.55/lb and Silver up 0.4%.

The US 10-year Treasury note yield is retreating below 5.20%, while the 30-year Treasury yield is falling below 5.60%. The US Dollar Index is down 0.2%, the Euro is up 0.1% and the Loonie is steady.

US factory orders are due at 10:00 am EDT, with the Street expecting growth of 0.1%, compared with 0.9% previously.

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