Spreadex Market Update
Non-farm Friday doesn’t disappoint, seems to secure December lift-off
Coming at 211k against the 201k expected, this month’s non-farm employment change may not have been quite as spectacular as last month’s figure (which was actually revised up from 271k to a whopping 298k) it seems nevertheless enough to secure the announcement of a rate hike at December’s FOMC meeting.
Joined by an as-expected drop in wage growth to 0.2% (from 0.4%) alongside an unchanged (but still 7 and a half year low) unemployment rate of 5% this afternoon’s figures lit a fire under the Dow Jones’ belly, sending it over 220 points higher with investors seemingly relieved that the year-long uncertainty over what the Fed would do next is finally coming to an end. The dollar didn’t receive quite the same bump, having already priced in a solid non-farm number during the morning’s trading.
Not that this American positivity extended to Europe. The FTSE widened its losses to around 60 points as the day went on, its commodity sector suffering from the (unsurprising) news that OPEC have decided to maintain its output at its current levels, sending Brent Crude 2% lower in the process. The Eurozone was even worse, the DAX and CAC posting 80 and 40 point losses respectively, apparently unable (or unwilling) to get over Mario Draghi’s less than stellar stimulus announcement on Thursday.
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