Markets steady heading into final trading day of the week…
Financial markets appear to be encountering a wave of calm as we begin a new month and end an interesting week of a trade.
All eyes will no doubt be on today’s US non-farm payrolls data which will cross the wires at lunch time. Consensus is for a number of 165K jobs added into the economy in the month of January, this follows a whopping 312K in December. Despite the record duration government shutdown taking place across most of January, Wednesday’s private sector payrolls number impressed. Today’s number could be a lot different as it encompasses the public sector, which will bear 99% of the impact of the shutdown. The unemployment rate and average hourly earnings are set to hold steady at 3.9% and 3.2%, respectively.
Overnight, Chinese data has added and element of concern to this final day of weekly trade. Caixin manufacturing numbers for the previous month have dipped further into contraction territory, printing 48.3 vs 49.5 with anything below the 50 mark deemed contractionary. This gives fuel to Trump’s cause in respect to trade deals and fairer global practices but doesn’t take away from the fact the global economy is slowing down and if China’s taking a hit, no doubt they’ll take others with them.
Elsewhere, on today’s economic calendar, manufacturing will be the order of the day. European and US manufacturing numbers will be released as well as eurozone inflation numbers. Have a great weekend.
Written by Viv Savani. 8:32am, February 1st 2019
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8:38am, January 11th 2019
Once again, Powell reiterates Fed’s patient position…