Summary:
-
Stocks slide as rising yield fears grow
-
US NFP misses but large prior revision causes mixed reaction
-
Strong Canadian jobs data all part-time roles; CAD pulls back
-
What do charts tell us about cryptocurrencies?
There’s been further weakness in stocks today with declines seen across the board. The markets remain skittish around the recent rise in yields and should the major indices (US500, US100, DE30, UK100) end the week around present levels then it would make for some pretty ugly looking weekly candles.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThe keenly anticipated US jobs report has caused an interesting market reaction with a large miss in the headline figure but an even bigger positive revision to the previous release sending mixed signals. Given a consensus forecast of 185k and strong ADP and ISM reading in the week the bar was high coming into today’s number, and on the face of it a print of 134k represents a bad miss. In fact the figure for September is the lowest since the March data and only one other NFP in 2018 has provided a lower reading. However, a significant revision higher to the previous reading changing the context substantially with the August number now reading 270k from 201k when it was first released last month. Looking back this has become something of a recurring theme of late with 8 of the last 10 NFPs seeing the prior number revised higher.
The Canadian employment figures are often overlooked due to their release coinciding with the US equivalent, but perhaps because of this it can provide some good trading opportunities. Here we got almost the opposite release to that seen in the US with the headline reading showing a bumper beat, but when you look more closely the data was not so positive. For the month of September the employment changer rose to 63.3k from -51.6k in August, more than the 25k estimated. However, as is often the case with Canadian jobs figures, the composition of the roles is key and here it doesn’t look so positive. The entire rise in employment can be attributed to part time roles (+80.2K vs +20k exp) with full time positions actually declining (-16.9k vs +15k exp) for the month.
Crypto markets have been uncharacteristically quiet of late and today is no different, with none of the 5 moving by more than 1.5% at the time of writing. We earlier focused on Ethereum, Litecoin and Bitcoin from a technical analysis perspective and this news story can be viewed here.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 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. XTB 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.