Futures trading points to the ASX 200 gaining 0.3% this morning after stronger than expected US jobs data lifted key Wall Street indices.

The S&P 500 put on 0.9%, the Nasdaq 1.2% and the Dow’s 0.8% gain lifted it to another record.

Once again, the small cap Russell 2000, which benefits from a lower interest rate environment, outperformed (+1.5%), as did the US banks (+1.6%).

US non-farm payrolls increased by 245,000 comfortably beating the consensus guess of 140,000.

Unemployment unexpectedly slipped a notch to 4.1% — which was rounded up from 4.051%, so could easily have been 4.0%.

It means the US economy is likely to be heading for its much-hoped-for soft landing and another large (50bp) cut is off the table, at least for the time being.

Market boffins and even US Federal Reserve heavies reached into their top drawer of superlatives to describe the jobs market.

Chicago Fed president Austan Goolsbee called the data “superb” and said more labour market data along those lines would boost his confidence the economy is at full employment with low inflation.

One thing the “superb” number did was kill off the option a 50bp cut in November, with markets betting a 25bp cut as almost certain with only bet in the frame being a small chance on the Fed leaving rates unchanged.

Bank of America US economist Aditya Bhave gave the data an “A-plus” score.

“The data flow since the Fed’s decision to cut by 50bp in September has been remarkably positive,” Mr Bhave said,

Bank of America now expects the Fed to cut rates by 25 basis points per meeting through March 2025, followed by reductions of 25 basis points each quarter until the end of 2025.

The strong jobs numbers also drove the US dollar higher against most currencies, including the mighty Australian dollar, while US 10-year Treasury yields climbed to the highest level in two months.

On the other side of the coin so to speak, gold fell although geopolitical anxieties did put a floor under the price to some extent.

The risk of a Middle East war saw oil make its largest weekly gain since early 2023.

The global benchmark Brent crude put on 8% over the week (0.6% on Friday to $US78.05/barrel), while West Texas Intermediate gained 9% (0.9% on Friday).

Chinese markets reopen this morning after the weeklong celebration of National Day.

Before the timeout, the Shanghai Composite was going gangbusters after yet another big stimulus package, so it will be interesting to see if that momentum is continued this week.