It has been an interesting week and despite a lot of negative news, equity markets enjoyed a positive run.
The strong US jobs report renewed fears about further large interest rate hikes from the Federal Reserve, which is why equity markets are lower.
By David Madden (Market Analyst at Equiti Capital)
Today, the financial markets are eyeing the Non-farm payroll report issued from the US Bureau of Labor Statistics in the wake of the Fed’s intention to tighten its monetary policy. The Fed will likely hike its rate for the first time since late 2018, next March when it ends the massive asset purchase program of $120 billion a month.
The data released today showed that US non-farm payrolls lost 33 K jobs in September, against expectations of adding 90K jobs. August data was revised up from 156 to 169K jobs.
Below is a look at the most important data that may have a direct or indirect impact on the readings to be released today:
Goldman Sachs expects that the economy to add 50,000 jobs in September, unemployment to 4.5%, while average hourly earnings is expected to rise by 0.4% on a monthly basis and 2.7% year over year.
The US dollar managed at the end of the week to erase losses since the beginning of the week, following positive employment data that exceeded expectations in July. The Non-Farm Employment Change Index added 209 K jobs with the June reading revised to 231 K jobs. Also, unemployment rates were at their 16-year low of 4.3%, and the hourly wage rose by 0.3% in July.
By Reuters : U.S. employers likely maintained a strong pace of hiring in July while raising wages for workers, signs of labor market tightness that could clear the way for the Federal Reserve to announce next month a plan to start shrinking its massive bond portfolio.
By Reuters : Asian stocks inched up on Friday after a technology-led drop on Wall Street, with gains kept in check by investors' reluctance to stake out fresh positions ahead of U.S. jobs data later in the global day.
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