World shares edge higher as Fed comments cut September hike odds to 50%

  • World shares edged higher as investors awaited U.S. August payrolls data.
  • 50% marked the revised money-market probability of a Federal Reserve rate hike this month.
  • The yen was set for a weekly gain of nearly 2.5%, its best since late July.

World shares edged higher on Friday ahead of the U.S. August payrolls report, while comments from Federal Reserve Governor Christopher Waller reduced money-market expectations for a rate increase this month to 50% from 63% a day earlier. Treasury yields fell, led by shorter maturities, and the dollar weakened, helping the yen toward a weekly gain of nearly 2.5%. Forecasts call for 56,000 new jobs after a 23,000 decline the previous month, with unemployment expected to remain at 4.1%. European equities were broadly flat as higher oil and natural-gas prices supported expectations for another European Central Bank rate increase next Thursday. Longer-term bond investors remained concerned about inflation, government debt, geopolitical tensions and energy prices, while markets also looked ahead to U.S. inflation data next week.

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