US indices extend drop after disappointing jobs report
The final US jobs report ahead of the presidential elections (November 3) turned out to be a disappointment. Headline figure showed smaller employment gain in September than expected. Details of the report:
- Non-farm payrolls: +661k vs +850k expected (previous: 1371k)
- Unemployment rate: 7.9% vs 8.2% expected (8.4% previous)
- Wage growth: +0.1% MoM vs +0.2% MoM expected (+0.4% MoM previously)
Release confirmed slowdown in the US labour market recovery and exerted some additional pressure on the US indices. The US dollar also weakened. Factory orders data for August will be released at 3:00 pm BST.
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US500 deepened decline in a knee-jerk move following a disappointing NFP report (blue arrow). However, part of this drop has been recouped already and the index still trades above the 3,310 pts support zone. Source: xStation5
