Spreadex Market Update
UK unemployment hits 8 year low as FTSE and pound continue to rebound
In some much needed good news the UK jobs report threw up two surprises this Wednesday. Firstly, wage growth remained at 2.0% instead of dropping to the expected 1.7%; secondly, and arguably more importantly, the unemployment rate finally fell back to 5.0%, hitting its lowest level since before the financial crisis. This positive jobs report helped the FTSE maintain its 1% gains this morning, extending the rebound that began early in the session and allowing investors a brief moment of respite from the dominant Brexit-chatter that has plagued the markets in the last week or so. The pound also benefited from those wage growth figures, cable once again approaching $1.42 following a 0.7% rise.
There were similar scenes over in the Eurozone, with the DAX and CAC jumping 1.2% and 1.5% respectively. The region got its own data-boost this Wednesday, the Eurozone-wide trade surplus unexpectedly growing to €28 billion.
Looking ahead of the US open and things are about to get BUSY. Before the bell the US sees the latest PPI reading (expected to creep higher to 0.3%), the Empire State manufacturing index (forecast to recover to -3.4 from -9.0), the capacity utilization rate (set to slip to 75.2% from 75.4%) and the industrial production number (expected at -0.2% against 0.7% last month). If that wasn’t enough the markets then get to deal with June’s Fed statement this evening, with investors keen to get a handle on the likelihood of a July rate-hike.
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