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NFP report for May below expectations
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Stock indices move up, DE30 at record highs
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The US dollar lower against its peers
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Commodities prices mostly higher
The long-awaited NFP day is almost over, at least for European and Asian traders. The key market-moving event of the day, namely the NFP report from the US turned out to be a slight disappointed. The data showed that the US economy added 559k jobs in May, below market forecasts of 675k. The US unemployment rate fell to 5.8%, the lowest level in 14 months. On the data dront, traders also paid attention to the labour market report from Canada - the data surprised to the downside as well. The unemployment rate in Canada increased to 8.2% in May from 8.1% in April while the employment fell by 68k (vs exp. -20k).
Despite weaker jobs data, US indices tick higher. The S&P 500 (US500) is currently gaining 0.75% while the Nasdaq100 (US100) is rallying 1.40%. Major European indices finished the day higher with the German DAX climbing to fresh all-time highs (the cash index closed just slightly below 15,700 pts). Solid manufacturing PMI from the UK for May (64.2 vs exp. 62.3) gave investors an optimistic outlook in terms of European economy’s recovery.
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Create account Try a demo Download mobile app Download mobile appThe US dollar plunged following the NFP miss. EURUSD remains above 1.2160 in the evening European time while GBPUSD hovers around 1.4160. As far as main commodities are concerned, gains can be spotted across the board. Cryptocurrencies tumbled once again after Elon Musk posted a tweet suggesting he’s fallen out of love with the Bitcoin (he sent a broken heart emoji). BTC price is plunging roughly 5% at press time.
US500 jumped after NFP data, climbing above 4,220 pts (highest since Tuesday). Equity markets bulls felt encouraged to launch an upward impulse as the Fed might want to delay the discussion about tapering after weaker-than-expected jobs report. One cannot rule out that bulls may intend to attack recent all-time highs as the index is less than 0.50% below its record levels from May 10. Markets will certainly pay attention to US CPI figures next week as well as central bankers’ speeches. The area near 4,175 pts remains key support level. Source: xStation5
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