What happened

On Friday, the United States reported that employers added 162,000 jobs in August, about three times the 53,000 that economists had expected. That figure is a monthly count of new paid positions across the economy, while the unemployment rate held steady at 4.1%. The same week, several Federal Reserve officials, including its new chair, Kevin Warsh, signalled they were in no hurry to lower interest rates.

Why it matters

A strong jobs market gives the Fed less reason to cut rates, and arguably a reason to raise them when it meets on 15-16 September. Investors had been counting on cheaper money to support share prices and hold down borrowing costs. A number like this pushes that hope further away, which is why shares slipped and bond yields rose on what looked, at first glance, like good news.

What it means for your investments

Markets now expect US interest rates to stay higher for longer. The yield on the 10-year US Treasury, which is a benchmark that feeds through to mortgages and company loans, climbed towards 4.8%, close to its highest in months.

This is not a warning of recession or crisis, but it means that borrowing, for governments, companies and households alike, is likely to stay expensive for a while, and that this week's US inflation figures, with oil near USD 97 a barrel adding to the pressure, matter more than usual.