Friday’s Nonfarm Payroll report again came out lower than predicted showing that only 113,000 jobs were created during the month of January. However, the Unemployment Rate improved and declined to 6.6% which is the lowest rate since 2008. This painted a picture of improving economy but one which still relies on low interest rates and one which benefits from monetary stimulus. At the close of U.S. trading, the Dow Jones Industrial Average had gained 1.06% and the S&P 500 index had gained 1.33%. Asian stocks were mixed as investors assessed the data. The Nikkei gained 1.77% as the Yen weakened against the Dollar, however, the Hang Seng lost 0.27% due to continued uncertainty over liquidity conditions. European markets have opened higher as optimism is now growing that the Fed may deter further tapering of the monetary stimulus.
WTI climbed to a 6 week high after the Unemployment rate from the US showed there could be increased demand for the commodity if improvement continues in the labor market. The weak NFP figure could again be attributed to the ongoing bad weather in the US and so may not be so significant. The speculation that the Fed may slow down tapering also boosts prices as oil tends to rise when the dollar falls because it becomes cheaper to buyers in different currencies. We can now see the price dropping due to profit taking. Gold increased following the data and reached a two week high. Physical demand from China has also heightened. As the Unemployment Rate was positive it shows strength in the US economy and suggests that the labor data may not be accurate and so tapering may continue at its current pace. This would cause a drop in prices and therefore traders should be careful with any long term positions.
Today’s Main Events:
13.15 GMT: CAD – Housing Starts – measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
February 10, 2014 – Daily Market News
Today’s Hot Assets: WTI, Gold, CAD
Friday’s Nonfarm Payroll report again came out lower than predicted showing that only 113,000 jobs were created during the month of January. However, the Unemployment Rate improved and declined to 6.6% which is the lowest rate since 2008. This painted a picture of improving economy but one which still relies on low interest rates and one which benefits from monetary stimulus. At the close of U.S. trading, the Dow Jones Industrial Average had gained 1.06% and the S&P 500 index had gained 1.33%. Asian stocks were mixed as investors assessed the data. The Nikkei gained 1.77% as the Yen weakened against the Dollar, however, the Hang Seng lost 0.27% due to continued uncertainty over liquidity conditions. European markets have opened higher as optimism is now growing that the Fed may deter further tapering of the monetary stimulus.
WTI climbed to a 6 week high after the Unemployment rate from the US showed there could be increased demand for the commodity if improvement continues in the labor market. The weak NFP figure could again be attributed to the ongoing bad weather in the US and so may not be so significant. The speculation that the Fed may slow down tapering also boosts prices as oil tends to rise when the dollar falls because it becomes cheaper to buyers in different currencies. We can now see the price dropping due to profit taking. Gold increased following the data and reached a two week high. Physical demand from China has also heightened. As the Unemployment Rate was positive it shows strength in the US economy and suggests that the labor data may not be accurate and so tapering may continue at its current pace. This would cause a drop in prices and therefore traders should be careful with any long term positions.
Today’s Main Events:
13.15 GMT: CAD – Housing Starts – measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
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