GLOBAL MARKETS-Dollar tumbles, share gain after disappointing U.S. jobs data

Tue Oct 22, 2013 9:32am EDT

* U.S. jobs data misses expectations, 148,000 vs poll of
180,000
    * Dollar slides vs euro, yen adding to recent battering
    * U.S. stock futures edge up, bonds make ground on Fed
support hopes

    By Marc Jones
    LONDON, Oct 22 (Reuters) - The dollar hit an eight-month low
and shares and bonds gained on Tuesday on the back of the weak
U.S. jobs figures that pre-dated this month's acrimonious budget
tussle.
    With U.S. employers adding 148,000 new positions in
September versus the 180,000 expected by economists polled by
Reuters, worries increased that the world's largest economy was
losing momentum even before this month's political disruption.
    The figures raised expectations the Federal Reserve will
keep its stimulus at full well into 2014.
    The dollar tumbled to a new eight-month low against a
basket of major currencies shortly after the data, including a
two-year trough of $1.3748 to the euro, while yields on
benchmark U.S. Treasuries fell to the lowest in three months.
    The prospect of a longer spell of super-easy money from the
Fed also meant share made gains. European shares added around
0.3 percent and stock futures for the S&P 500 and Dow
Jones Industrial went from flat to up 0.25 percent.
    "Full bore quantitative easing will probably be with us
through the first quarter and speculation for an increase may be
no further away than another weak payrolls number," said Joseph
Trevisani, chief market strategist at WorldWideMarkets in New
Jersey.
    The dollar has borne the brunt of the recent volatile U.S.
conditions, firstly after the Fed opted against cutting its
stimulus in September and then as the budget spat and 16-day
shutdown in Washington pushed the country close to a default.
    By 1300 GMT the dollar index was down 0.26 percent at 79.473
and back flat against the yen, at 98.14 yen after
spending most of Asian and European morning trade in positive
territory.
    Many analysts had already been expecting the Fed to maintain
its quantitative easing (QE) given the likely economic impact of
this month's fiscal spat and the prospect of another bitter
budget fight early next year, but the data firmed the view.
    "This report definitely gives the Fed pause. It keeps QE
alive and bonds will like it and so might stocks. This is
positive for all asset prices," said Craig Dismuke, chief
economic strategist with Vining Sparks in Tennessee.
    It was a similar story for commodities. 
    Gold, surged 1.3 percent to a session high of $1,331
an ounce, copper climbed to $7,310 a tonne, while U.S.
and Brent crude prices  pushed to $99.26 and
$110.60 a barrel respectively after rising stockpiles of oil saw
U.S. prices hit near four-month lows on Monday.