Monday, July 8, 2013

Unemployment data better than expected

On Friday, the U.S. labor market data cheered investors and stock indices advanced by 1 per cent. S & P 500 index value increased by 1.02 percent., The Dow Jones Industrial Average - had 0.98 percent., And the Nasdaq - 1.04 percent. Over the last week they rose from 1.5 to 2.2 percent. On Friday, the financial and industrial sector indices recorded major gains, but only in the utilities sector shares went down.
Today begins the second quarter of companies’ financial results announcement marathon. The first results will be published after trade marketing aluminum giant Alcoa Inc. '.

The United States


 in June of workers in non-agricultural sectors increased by 195 thousand. This data strongly exceeded the expectations of investors – it was expected only 155 thousand new jobs. Most jobs were created in bars, restaurants and hotels. Also, the number of employees increased in retail, healthcare and professional services sectors, and fell in manufacturing and government sectors. Also, the greater half of the previous month’s data has been revised. For example, in April was created 50 thousand more jobs than had been previously announced, and in May of 20 thousand. more. The unemployment rate remained unchanged - 7.6 percent, And unemployment rate, which included the unemployed and those who are no longer motivated work or do not work full-time, down from 14.3 percent to 13.8 per cent.

Western Europe

On Friday, the Western European stock market index values ​​declined 14 of the 18 national markets. U.S. labor market statistics were better than expected and it is accepted by investors as a sign that the Fed will reduce the scale of the stimulation. German factory orders fell 1.3 percent. Most economists forecasted 1.2 percent growth. Weekly change in the markets, however, was a positive sign, because the meeting of the European Central Bank and the Bank of England insisted on keeping to easy monetary policy.

Today futures index shows growth in the Western European stock market. These days, market participants again recalled the troubled euro zone, but it is expected that Greece will agree with the creditors on even one more payment. Attention will be given to ECB President M. Draghi at the European Parliament - awaiting hints of how long it will maintain low interest rate environment.

Asia

Today, Asian stock indexes fell the most in the past two weeks. Global equities MSCI Asia Pacific Index fell 1.5 percent. All 10 sectors of the economy indices decreased. China's commodity-sector shares in companies today went down the most. "Jiangxi Copper Co." And "Shandong Gold-Mining Co. shares lost 4.7 and 7.3 percent of their value. After the Chinese government to the Council on the economic reforms that have been mentioned above constraints asset management products and lending to certain sectors of the economy, China's banks are also often sold than bought. For example, China Construction Bank Corp. Swept the stock price by 2.8 per cent., While Industrial & Commercial Bank of China Ltd.'s Share price fell 2.7 percent.

Raw materials

In the last business day of the week "WTI oil prices increased 1.96 percent, brent had 2.1 percent. It was the fourth consecutive WTI Oil prices have day and same price rose to the highest level in the past fourteen months. Clashes in Egypt after the overthrow of President of the country has become a major cause of the growth in oil prices, as investors fear further unrest in a politically sensitive area. In addition, reported that closed the main Libyan oil export terminal in the port of disagreements with management staff salaries as well as security issues. By the way, the price of oil, and supported by favorable macro-economic news from the United States, related to the better-than-expected labor market data. It is likely that in the coming days, and most of this energy resource market players eyes will turn to Egypt, and the price may increase, while the situation at least a little bit complacent.

The price of gold fell 2.14 percent on Friday. up to 1223 U.S. dollars per troy ounce after the published better than expected U.S. jobs in June changes. This again shows that the Fed can really take in the near future the current conduct of monetary policy retraction. U.S. dollar against major currencies on Friday increased to the highest level in three years, and this is also the price of gold down the pushing factor. It is likely that the price of this precious metal can once again get close to 1200 U.S. dollars per troy ounce range when immediate macroeconomic data from the U.S. are positive.

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