The key event of the day, i.e. the publication of the NFP report came out quite well. The report itself disappointed with a reading of 431k against expectations of even 490k, but it is worth noting that the previous report was revised up to over 700k and a lot of manufacturing jobs were added. The unemployment rate fell and wages continue to rise. In theory, this paints a picture of a strong economy but still generating inflation. However, this report certainly does not change the Fed's plans for a stronger interest rate hike.
On the other hand, the ISM manufacturing index was disappointing, falling to 57.1 points in March, lower than previously and below expectations for growth. We got a very low reading on new orders and a powerful increase in prices, giving us a mixed mix for the outlook going forward.
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Create account Try a demo Download mobile app Download mobile appThe dollar remained strong today, although this is also due to uncertainty over the war in Ukraine. Putin signed a decree yesterday regarding payment in rubles for gas, which is not going to be respected by most European countries. The real impact of this decision will not be seen until mid-April when it comes to real payments. Theoretically, there were reports of the Russian side understanding certain demands of Ukraine. On the other hand, intensive fights continue in some regions.
Stock indices in Europe were doing well today despite the uncertainty. Not bad for Wall Street either, but after a dismal previous quarter, this quarter is off to a mixed start. Q1 declines reached as high as 15% on the S&P 500, but these have been reduced to 5%.
Gold lost about 1% today, but oil also lost a lot, which has to do with Biden signing off on plans to release 180 million brk of reserves over the course of six months. WTI crude oil fell below $100 a barrel today.
