There was key news from the US on Friday that the non-farm payrolls numbers showed that the American economy added only 142,000 jobs compared with expectations between 220,000 and 230,000, the weakest gain since December 2013. In addition June and July numbers were revised down. Despite this the S&P 500 finished up 10 points at 2,007. The FTSE 100 finished the week at a 14 year high of 6,853, not far away from the all time high of 6,930.
It is a no lose situation right now in terms of the US non-farm payroll data. A bad number and the market goes up because there are expectations that any weakness in the US economy means that the Federal Reserve delays raising interest rates. A good number and the market goes up since it reinforces a growth in economic activity as a whole and hence the perception that corporate earnings will rise.
It was interesting to see that iron prices hit a 5 year low of $86 a tonne this week on a lack of demand from Chinese steel producers and a glut of supply from the global mining producers. Though decent PMI data from China seemed to reassure nerves about the overall state of the Chinese economy.
Geo-political tensions seem to have subsided and the bull run goes on and on and on!
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.
by contrarianuk
Markets shrug off weak US jobs numbers to continue gains
Sep 7, 2014 at 8:58 am in Market Commentary by contrarianuk
There was key news from the US on Friday that the non-farm payrolls numbers showed that the American economy added only 142,000 jobs compared with expectations between 220,000 and 230,000, the weakest gain since December 2013. In addition June and July numbers were revised down. Despite this the S&P 500 finished up 10 points at 2,007. The FTSE 100 finished the week at a 14 year high of 6,853, not far away from the all time high of 6,930.
It is a no lose situation right now in terms of the US non-farm payroll data. A bad number and the market goes up because there are expectations that any weakness in the US economy means that the Federal Reserve delays raising interest rates. A good number and the market goes up since it reinforces a growth in economic activity as a whole and hence the perception that corporate earnings will rise.
It was interesting to see that iron prices hit a 5 year low of $86 a tonne this week on a lack of demand from Chinese steel producers and a glut of supply from the global mining producers. Though decent PMI data from China seemed to reassure nerves about the overall state of the Chinese economy.
Geo-political tensions seem to have subsided and the bull run goes on and on and on!
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.