LONDON (AP) Stock markets were volatile on Friday as weak U.S. jobs figures created uncertainty over whether the Federal Reserve would start to rein in its monetary stimulus this month.
The official "non-farm payrolls" report showed the world's largest economy added 169,000 jobs in August, about as expected, though it created far fewer in July than previously thought. While the unemployment rate dropped to 7.3 percent from 7.4 percent, that drop was mainly due to the fact that fewer people were looking for work.
The report is the last major indicator the Fed sees before it decides this month whether or not to pull back on its massive bond-buying program, a stimulus plan that has kept interest rates low and supported stocks for months. Most investors believe the Fed will begin to pull back this month. But Friday's jobs report makes that slightly less certain.
"August's Employment Report is a mixed bag that can be used to support an immediate tapering of the Fed's monthly asset purchases or delaying that move until later this year," said Paul Ashworth, an analyst of Capital Economics. On balance, he expects the Fed to still begin reducing its stimulus this month.
European stocks initially rallied after the data, but dropped back down as Wall Street opened lower, only to rise again before trading ended Friday. Britain's FTSE 100 finished the day up 0.23 percent to 6,547.33, while Germany's DAX was 0.49 percent higher at 8,275.67. France's CAC-40 rose 1.06 percent at 4,049.19.
