US stock markets hit new record highs after investors digested disappointing US employment data, while in France the political crisis pushed up government bond yields, AFP reported.

The US Department of Labor announced that 911,000 fewer jobs were created in the 12 months to March than initially reported. This suggests that the cooling of the labor market began earlier and is stronger than expected, reinforcing forecasts of interest rate cuts by the Federal Reserve.

"After the weak employment report in August, these revisions show that the momentum in the labor market is weakening from an even lower base," commented analysts at ING.

The Dow Jones, S&P 500, and Nasdaq ended trading at record highs, with attention now turning to inflation data on September 10. A higher-than-expected result could limit the Fed's willingness to provide further relief.

In Asia, Japan's Nikkei briefly hit a new record high but closed lower as the market awaits the new leader of the Liberal Democratic Party to propose a new economic stimulus package following the resignation of Prime Minister Shigeru Ishiba. 

In France, the CAC 40 index rose after Prime Minister François Bayrou resigned following a vote of no confidence in parliament. However, French bond yields temporarily exceeded those of Italy, a development that preceded Fitch's update of the country's credit rating on September 5. Analysts believe that the risk of a financial crisis is limited for now.

Gold extended its record gains, rising to over $3,680 per ounce. Oil prices also rose after Israeli strikes in Qatar fueled fears of an escalation of the conflict in the Middle East. | BGNES