London — World stocks are poised to end the week at six-week lows in the face of oil weakness, a spike in bond yields and expected tighter monetary policy especially in the US. US job growth surged more than expected in June and employers increased hours for workers, signs of labour market strength that could keep the Federal Reserve on course for a third interest rate increase this year despite mild inflation. However, stubbornly sluggish wage growth remains a concern for investors on worries over whether spending by US consumers will be strong enough to back the US Federal Reserve’s intention to further tighten policy. Bets that the world’s major central banks are moving closer to unwinding ultra-loose monetary policies have roiled markets and European Central Bank minutes released on Wednesday indicate its policy makers are open to further steps. This sent German government bond yields to 18-month highs, lifted the euro and weighed on stocks. European bonds steadied on Friday tho...
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