Recession fears amid weak US job numbers

UNEXPECTEDLY weak US job numbers for August yesterday reinforced fears of recession, driving investors out of stocks and into the safety of bonds, gold and the Swiss franc. World stocks fell nearly 2 percent after the US Labour Department said employers added no new jobs in August and July’s figure was revised lower.

The biggest reaction came in the US Treasuries market, where the yield on the 30-year bond hit two-and-a-half-year lows on growing bets the dismal data will compel the Federal Reserve to take additional steps to boost the economy.

After a treacherous August of out-sized market volatility, the jobs report feeds worries that September could bring more of the same, especially if economic data rekindles fears of another recession.