Daily News – US Markets Sink as Payroll Data Fails to Impress

SamTrader1

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Equities

Asian markets rallied strongly, thanks to Thursday’s strong jobs data from the US. The Nikkei rose 1%, and the Hang Seng and ASX 200 both rallied 1.2%. China’s Shanghai Composite rose 1.4%, and the Kospi surged 1.7%.

European markets ended lower, as inline US payroll data led to an afternoon selloff. The CAC40 dropped 1%, while the DAX fell .7% and the FTSE eased .2%.

US markets fell, but a very late rally cut those losses significantly. The Dow ended down 88 points, well off the 180 point loss at the day’s low. The S&P sank .7%, and the Nasdaq eased .5%.


Late Day Rally Limits Dow's Losses

Chip-maker, Marvell, plunged 11.5% on weak earnings, and Monster Worldwide tumbled 6.4% on an analyst downgrade.

Treasuries and Commodities

Bonds gained, particularly the middle of the yield curve. 5-year notes rose 15/32 and 10-year notes rose 18/32 to yield 3.49%, while 30-year noted edged up 10/32, to yield 4.6%.

Oil’s powerful rally remains unchecked, as prices jumped another 2.51 to 104.42. Natural gas rose .8% and gasoline climbed .7% in a broad energy rally.

Gold prices recovered from Thursday’s drop, rising 12.20 to 1428.60. Silver rallied 2.9%, while copper ended down a mere .1%.

Currencies

The currency market had a surprisingly quiet day, as the inline payroll data triggered little movement. The Euro ticked up .2% to 1.3986, while the Yen, Pound and Canadian dollar all ended within .1% of Thursday’s close. The exception was the Swiss Franc which rose .6% to .9261.

Economic Outlook

The unemployment rate fell to 8.9%, and the economy added 192K jobs in February. Analysts had expected a number between 185K and 200K, and an unemployment rate of 9.1%. Factory orders rose 3.1%, well above the 2.1%. Overall, a very positive round of economic news, but after Thursday’s job-triggered rally, it was not enough to impress traders.

This week’s light economic calendar begins with Consumer Credit on Monday. Surging oil prices and escalating violence in Libya are likely to be the major focus over the next week.

By, BinaryOptionStrategy.com
 

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