Stock markets worldwide dipped yesterday after April US employment data showed the fewest jobs added in seven months, adding to concerns over economic growth, while short-dated Treasury yields sank.

Non-farm payrolls increased by 160,000 jobs last month, far below the 202,000 economists polled by Reuters had forecast on average. The number cast doubts on whether the Federal Reserve will raise interest rates before the end of the year.

US interest rates futures suggested traders see a seven per cent chance of the Fed raising rates at its June 14-15 meeting, down from 14 per cent on Thursday, Reuters data showed.

US and European shares weakened after the jobs data. In Europe, hedge fund Man Group was among the worst performers, down 8.6 per cent after Citigroup cut its rating on the stock to “sell” from “buy”.

US two-year Treasury note yields briefly fell to their lowest levels in 12 weeks, at 0.686 per cent, after the jobs report discouraged some views of a June Fed rate hike. Short-dated Treasuries are considered most vulnerable to Fed interest rate increases.

MSCI’s all-country world equity index was last down 0.25 per cent, at 394.42. The index was on track to post its biggest weekly percentage decline since early February.

The Dow Jones industrial average was last down 14.99 points, or 0.08 per cent, at 17,645.72. The S&P 500 was last down 5.24 points, or 0.26 per cent, at 2,045.39.

The Nasdaq Composite was down 18.16 points, or 0.39 per cent, at 4,698.93.

Europe’s broad FTSEurofirst 300 index was last down 0.29 per cent, at 1,303.08.

Longer-dated Treasury yields rose on signs of wage growth, with 30-year yields last at 2.618 per cent after dropping to a more than two-week low of 2.568 per cent.

Average hourly earnings rose 0.3 per cent in April after a weak reading for March.

Oil prices erased early losses as the dollar dipped. Brent crude was last up $0.53, or up 1.18 per cent, at $45.54 a barrel. US crude was last up $0.51, or up 1.15 per cent, at $44.83 per barrel.

The dollar recouped much of its losses tied to the US job data. The dollar index, which measures the greenback against six major currencies, was last down 0.1 per cent at 93.696. It had fallen as much as 0.6 per cent shortly after the data.

“It doesn’t bode well for global growth,” said Charles St-Arnaud, currency strategist at Nomura Securities International in New York, on the jobs data. “The Fed most likely won’t be able to hike rates in June.”

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