Stocks Mixed After Jobs Data Falls
The first of four jobs numbers out of the US for the week came in under expectation last night and there was a mixed reaction across financial markets. US stocks indices closed relatively close to flat, the Dow losing 0.21%, the S&P dropping just 0.04% and the Nasdaq gaining 0.31%. US treasury yields dropped again, with the benchmark 10-year hitting a 3-month low, down to 4.163% and the 2-year fell back to 4.56%. The dollar on the other hand managed to maintain recent session gains with the dollar index finishing the New York session up another 0.41%. Gold experienced a much quieter day than Monday, now trading back around the $2,020 level and Oil took another step lower.
Oil Targeting 5-Month Low – Brent Under $78
Oil prices fell again in trading yesterday as a combination of demand concerns, a stronger US dollar and doubts that the OPEC+ cuts will have a strong impact on the market hit Black Gold. Brent futures dropped 1.1% on the day and WTI also lost another 1% down to $72. From a technical perspective, if we see as strong break lower through the $72 level, then it opens the way for prices to drop back towards yearly lows around the $63.60 level. One thing most traders agree on is that we are going to see more volatility off the current levels, and all will be paying close attention to anything that hits the news wires on global growth concerns, especially related to China, and any fresh updates from OPEC+ countries on further clarification on production cuts.
More US Jobs Data Ahead Today
It is set to be another busy day ahead for traders in a week that has already seen a fair amount of volatility across markets. The Asian session will see the focus once again on the Australian market with the latest release of GDP data this morning. The European session see’s the Construction PMI data update from the UK before we hear from BOE Governor Andrew Bailey when holds his press conference on the Financial Stability Report in London. But again, the US session will be focussing on US jobs numbers, this time in the form of the ADP Non-Farm Employment change with expectations for a 131k increase priced into the market.
