Spreadex Market Update

US economy created 175,000 jobs in May



US non-farm payrolls showed the US economy created 175,000 jobs in May, beating the 163,000 consensus. However, the April figure was revised down to 149,000, 15,000 lower than previously estimated. Markets rallied as soon as the data was announced as many feel the figure is not good enough to warrant a reduction in the Fed’s stimulus programme. Despite payrolls topping expectations, the US unemployment rate came in slightly worse, ticking up 0.1 percent to 7.6 percent.

 

Gold prices tumbled after the data as investors dumped the precious metal in exchange for stocks. WTI now heads for its first weekly gain in a month after the positive job data

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