Forex Marketz Daily Forex News – Fully Markets Update
US stock closed mainly flat on Friday, ahead of the Italian referendum. Financial plays lost around one percent and investors were digesting a stronger-than-expected jobs report.
The Dow Jones lost twenty points, or so, in an uneven session. Plays like Goldman Sachs and Caterpillar led the decliners. The S&P 500 was basically flat and the Nasdaq Composite was also pretty much breakeven.
The European common currency, known as the euro was fairly flat against the Dollar during the trading session near $1.065. The US Dollar index was 0.3 percent lower to 100.71.
Investors are eying the Italian bond yields, which have been rising steadily for some time now. The spread between them and the German bund is also increased which is really becoming quite concerning.
The non-farm Payrolls add 178,000 Jobs
In economic news, the US released it’s much anticipate NFP report for November. The US economy added a better-than-expected 178,000 jobs. The unemployment rate fell to 4.6 percent. Economists expected a print of 175,000 jobs and for the unemployment rate to remain steady. The participant rate fell, within the workforce, as fid wages. Wages fell 2.5 percent.
This is a relatively strong number from the NFP report. It is likely to increase the likelihood of a rate hike by the Federal Reserve Board when they meet this month. The market reaction was rather muted which means investors had already priced this in.
As of right now, Federal Reserve rate hike futures are pointing to a rate hike this month and most market participants expect this to happen. Front end bond yields have also been rising thanks to, not only a rate hike, but President-elect Donald Trump’s policy of increased fiscal spending and tax cuts.
