Soft US payrolls make an October Fed hike unlikely | Reuters Morning Bid

Weak U.S. payroll data—with only 29,000 jobs added in September—effectively removes the possibility of an October Federal Reserve rate hike, though the broader economic trajectory remains intact due to strength in construction and manufacturing. Meanwhile, European debt markets face significant instability as the French sovereign risk premium hits 15-year highs, mirroring tensions from the 2011 euro debt crisis amid concerns over budget deficits and upcoming presidential elections. Concurrently, a G7-led release of 100 million barrels of diesel and crude aims to alleviate energy price pressures, though logistical bottlenecks and complex supply chain shifts continue to keep crude prices elevated above $100 per barrel. Political uncertainty in Spain, where a snap election is scheduled for November, further exacerbates regional market anxiety and complicates the European Central Bank’s potential policy response to widening bond spreads.