US NFP report for September was a key macro release of the week. Data was released at 1:30 pm BST today and turned out to be a big surprise. Non-farm payrolls came in at 336k, much higher than 170k expected by the economists. Private payrolls came in at 263k, and have easily beat ADP estimates (89k). Nevertheless, the unemployment rate remained unchanged at 3.8% in spite of expectations of a drop to 3.7%. Wage growth came in slightly weaker than expected at 4.2% YoY.
This was another release that stood in contrary to Fed's expectations of labour market cooling and triggered a spike in yields - 10-year yield is around 10 basis points higher than before the release. USD surged while Wall Street index futures plunged around 1% in a knee-jerk move. Gold dropped around 0.5%.
US, NFP report for September
- Non-farm payrolls: 336k vs 170k expected (187k previously)
- Private payrolls: 263k vs 160k expected (179k previously)
- Unemployment rate: 3.8% vs 3.7% expected (3.8% previously)
- Wage growth: 4.2% YoY vs 4.3% YoY expected (4.3% YoY previously)
Source: Bloomberg Finance LP, XTB Research
Source: xStation5
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