Dollar Surges, Bonds Drop on Rate Speculation; Banks Rally
- Payrolls increase by 271,000 in October, jobless rate at 5%
- Fed futures signal 68% possibility of hike in December
U.S. Employment in Oct. Surges By Most This Year
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The dollar surged past this year’s high and Treasuries tumbled after American hiring grew more than analysts estimated, bolstering speculation the Federal Reserve will raise interest rates next month. Banks led gains as U.S. stocks erased early losses.
The greenback gained against 15 of its 16 major peers, while a rally in financial shares helped offset losses in utility stocks. European shares erased losses to cap a weekly advance as the weak euro bolstered exporters. Emerging-market assets tumbled, while the yield on 10-year Treasury notes spiked past 2.30 percent, the most since July. Gold slumped below $1,100 an ounce as commodities fell to a 1999 low.