CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Blowout NFP makes lasting impact on stocks, USD and Gold

16:27 6 December 2019

Summary:

  • All round solid NFP ends weak data narrative

  • US500 surges back near all-time highs

  • USD marches higher while Gold falls

  • Oil gains after OPEC+ agrees deeper cuts

  • Crypto newsletter: Fed-backed Crypto not needed?

 

It’s been a pretty volatile week for US stock markets, with equities taking a hit on some trade concerns and soft data in the first couple of sessions, but the recent release of an all round stellar jobs report from the world’s largest economy has boosted sentiment and pushed indices higher. 

 
  • NFP employment change: +266k vs +180k exp. Prior: 156k (revised up by 28k)

  • Unemployment rate: 3.5% vs 3.6% exp. 3.6% prior

  • Average hourly earnings M/M: +0.2% vs +0.3% exp

  • Average hourly earnings Y/Y: +3.1% vs +3.0% exp

 

Looking at the jobs data itself it’s not only hard to find any weakness but hard to find anything that isn’t strong with a large beat on the headline, upwards revision to the October data, and unemployment rate falling back to its lowest level in several decades. If you want to nit-pick you could say the M/M wage growth was a tad lower than expected, but this is more than offset by a better than forecast Y/Y reading and overall there’s little disputing the strength of this release. The US500 has rallied by over 20 points on the day and is back trading within striking distance of its all-time high around 3150. 

 

The impact has not been confined just to the equity space with US yields and the US dollar surging higher and Gold swooning. The EURUSD has broken below prior support around 1.1065 while Gold trades in the low $1460s at the time of writing. 

Various media outlets spread the information about an agreement among OPEC+ to cut output target by additional 500kbd. This was sought by the Saudis in a hope to secure higher price in Aramco sale. First such rumours emerged on Wednesday and the news of the decision doesn’t result in a major reaction. However, once the US entered there was a push higher with Oil.WTI coming close to the $60 a barrel mark on its daily high. 

 

Our latest Crypto newsletter looks at remarks from Mnuchin and Powell that they don’t see the need for a Fed-backed cryptocurrency and can be viewed in full here. 

 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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