Spreadex Market Update
Strong US JOLTS job openings and weak UK NIESER GDP estimate numbers take edge off markets
Following last Friday’s clarity-lacking jobs report, with strong upwards revisions for June and July’s non-farm figures but a big miss in the August number, a strong unemployment rate figure AND unexpected wage growth, today’s JOLTS job openings number perhaps carried more weight than usual. It didn’t please Dow investors, then, to see a 5.75 million increase in job openings, compared to the 5.3 million expected; it’s a hawk-boosting number that saw the Dow fall from a 160 point jump after the open to a cooler 60 point increase on the day.
The FTSE wasn’t immune to the effects of some investor-upsetting data either. The UK index had initially escaped the dismal manufacturing and industrial production figures of this morning relatively unscathed; however, a NIESR GDP estimate figure of 0.5% confirmed fears that the UK’s growth has been slowing down in the third quarter, and took a good 30 points off the FTSE’s gains in the process. And whilst the UK index soon returned near its session highs, it was a sobering moment for investors nonetheless. The DAX also saw a gradual lessening of gains as the day went on, its 100 point increase a decent chunk less than the morning’s peak; the CAC, however, was surprisingly resilient, holding onto its 2% jump for the majority of the day.
The markets face another test tomorrow morning with the arrival of China’s inflation data; the country’s CPI is expected to increase to 1.9% from last month’s 1.6% reading, whilst its PPI is forecast to worsen to -5.6% from -5.4%. Obviously there have been some wild discrepancies between analysts’ estimates and China’s actual figures recently, so it remains to be see how accurate these predictions will be, and how damaging any misses could become.
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