A currency trader walks by the screens showing the foreign exchange rates at the foreign exchange dealing room in Seoul, South Korea, Monday, July 8, 2019. Asian stocks tumbled Monday after relatively strong U.S. employment data tempered hopes the Federal Reserve might cut interest rates. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the foreign exchange rates at the foreign exchange dealing room in Seoul, South Korea, Monday, July 8, 2019. Asian stocks tumbled Monday after relatively strong U.S. employment data tempered hopes the Federal Reserve might cut interest rates. (AP Photo/Lee Jin-man)

LONDON (AP) — Global stock markets recovered their poise Monday after a big sell-off in Asia in the wake of unexpectedly strong U.S. employment data tempered hopes the Federal Reserve will aggressively cut interest rates.

Fed leaders have indicated they are ready to cut rates to support economic growth amid signs of a slowdown in the U.S. economy in the wake of the tariff war with China. However, the 224,000 increase in U.S. nonfarm payrolls recorded in June has diminished the prospects of 0.5 percentage point interest rate reduction from the Fed this month. In light of that changing backdrop, Congressional testimony from Fed Chairman Jerome Powell later this week will be closely monitored in markets.

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“Friday’s impressive jobs number did little to negate market expectations of a July rate cut, with the futures market still pricing in a 100% chance that Powell & Co. will act,” said Joshua Mahony, Senior Market Analyst at IG.

“However, we have seen the more speculative positions quelled after Friday’s jobs report, with the 26% chance of a 50 basis point move being trimmed back down to just 2.5%.”

In Europe, Germany’s DAX index was down 0.2% to 12,538 46.65 while the FTSE 100 of leading British shares fell was steady at 7,553. The CAC 40 in France was 0.1% lower at 5,587.

Wall Street was poised to open slightly lower with Dow futures and the broader S&P 500 futures down 0.2 percent.

Earlier in Asia, traders had their first chance to respond to Friday’s U.S. jobs data and they fell sharply. The Shanghai Composite Index fell 2.6% to 2,933.36 while Tokyo’s Nikkei 225 lost 1% to 21,534.35. Hong Kong’s Hang Seng retreated 1.5% to 28,331.69 and Seoul’s Kospi declined 2.2% to 2,046.17.

ENERGY: Oil prices were fairly steady with benchmark U.S. crude down 3 cents to $57.48 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price international oils, was unchanged at to $64.23.

CURRENCY: The euro was flat at $1.1222 while the dollar rose 0.1% to 108.51 yen.