Lower open likely for the U.S markets Monday as leading U.S. stock futures were down on Monday morning in the aftermath of the strong jobs data that hurt hopes for a Federal Reserve rate cut in July.

At 5:20 a.m. ET,  Dow Jones futures tumbled more than 100 points at the open. The S&P 500 and Nasdaq futures were also negative.

The strong U.S jobs for June showed that the U.S economy added 224,000 jobs.

Traders were betting on a Federal Reserve interest rate cut as fears of a slowdown escalated.

Fed Chairman Jerome Powell’s rationale on rate cut will be known at his semi-annual testimony to the U.S. Congress in the coming week.

A rate cut in the U.S may also prompt China’s central bank to cut its rate for the first time in four years to support the slowing economy, according to analysts.

In Europe, the pan-European Stoxx 600 was almost flat on Monday as sectors were swinging in opposite directions. The market’s sentiments were hit by tempered expectations on the U.S rate cut after the strong jobs data.

Oil price up

Oil prices moved up on Monday backed by better-than-expected U.S. jobs data and geopolitical tensions. However, concerns over a slower global economy checked a price spiral.

The gains of Brent crude futures were limited to 8 cents at 0647 GMT at $64.31 and the U.S. West Texas Intermediate (WTI) jumped 6 cents at $57.57 a barrel.

Prices were supported by “a better than expected (non-farm payrolls), but traders remain incredibly cautious about the dimmer global economic overhang” wrote Stephen Innes, the managing partner at Vanguard Markets in Bangkok.

Friday’s jobs data showed that 224,000 jobs were added in June, the highest in five months. But the unsolved U.S.-China trade war is expanding worries over global economic growth and curbing the demand outlook for oil.

“Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease,” noted Edward Moya, senior market analyst at Oanda.

Asian markets slide

Stocks in Asia slid on Monday after a strong U.S jobs report for June dimmed expectations on a Federal Reserve cut on interest rates.

China’s Shanghai Composite fell 2.58 percent. Hong Kong’s Hang Seng index slumped 1.66 percent.

“The solid US payrolls report dampened Fed rate cut expectations and dented the argument for a 50 bps cut by the end of the month. Effectively the debate has switched from a 25bps or 50bps rate cut to a 25bps cut or none” wrote Rodrigo Catril, the forex strategist at National Australia Bank.

Gold rises

Gold prices surged on Monday and saw consolidation above the $1,400 pivot as global growth concerns and interest rate cuts came to the center stage.

Spot gold jumped 0.5 percent at $1,406.79 per ounce, at 0721 GMT. The U.S. gold futures climbed 0.6 percent to $1,408.90 an ounce.

“Despite the strong (U.S. jobs) numbers, the market is expecting a rate cut, just not as aggressive it would have been. We are still in a rate easing cycle right now,” wrote Howie Lee, an economist at OCBC Bank.