An unexpected surge in US jobs growth in October drove Wall Street stocks higher on Friday and in turn boosted the dollar and bond yields by
raising expectations the Federal Reserve could scale back its economic stimulus as soon as December. The jump in new jobs - the Labor Department said employers added 204,000 new jobs last month, well above forecasts of 125,000 - suggested the economy is on strong enough footing for the Fed finally to begin trimming its bond purchases. The price on 30-year US government debt fell more than two full points, pushing yields up to 3.855 percent from 3.728 percent on Thursday. "The first part of the equation for the Fed to taper is data showing the economy is getting better," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago. "If companies are doing well and business is good, you don't need to have zero percent short-term money in order for the stock market to do well," he said.
Read more at:
http://www.moneycontrol.com/news/in..._986047.html?topnews=1&utm_source=ref_article