The yen fell against the dollar significantly , responding thus to the U.S. employment data . As it became known , U.S. employers continued to add jobs at a steady pace , while the unemployment rate fell in November. These are signs of strong economic growth , which can stimulate discussion about what the Federal Reserve will announce the reduction of bond purchases this month .
The Labor Department said that the number of employees in non c / agricultural sector grew by 203,000 last month. In turn, the unemployment rate fell by three-tenths of a percentage point to 7.0% , the lowest level in the last five years. Economists forecast that employment in non-farm payrolls increased by 184,000 and the unemployment rate is at around 7.2%. The cumulative number of people employed in September and October was revised to 8000 .
This report may reinforce expectations that the Fed will soon slow down the pace of its bond purchases to $ 85 billion per month. At its meeting in October , officials said on the probable end of the program " in the coming months ." Fed program , which began in September 2012 , is designed to maintain long-term interest rates low in order to increase investment and stimulate hiring . Fed officials will hold their next meeting on December 17-18 .
The Canadian dollar fell against the dollar, while returning to the levels of the opening session , which was associated with the release of positive U.S. jobs data and consumer sentiment index , which could compensate for all the positive report from the Canadian unemployment . Note that the preliminary index of consumer sentiment from Thomson Reuters and the University of Michigan in December rose to 82.5 . In November, the index was at 75.1 . December's value was the highest since July. This is better than expectations of economists at around 76.2 , All the growth index is associated with households with incomes below $ 75,000 per year. In households with higher income mood compared to the previous month has not improved . Almost all the increase is attributed to improved economic outlook for the coming year .
We also add that an indicator of current economic conditions rose from 88.0 in November to 97.9 , higher than expectations of 90 , and the indicator of economic expectations rose from 66.8 to 72.7 , which is above expectations in 68 . Evaluation index of current economic conditions was the highest since July, and the index of economic expectations - in August. Expectations for inflation in the long term than one year increased from 2.9% to 3.0%. Expectations for inflation in the long term from 5 to 10 years decreased from 2.9 % to 2.8 %.
European stocks rose, ending a five-day losing streak and rebounding from their lowest level since Oct. 14, after a U.S. jobs report showed employers added more workers than forecast in November.
The Stoxx Europe 600 Index added 0.6 percent to 316.42 at 4:34 p.m. in London. The gauge declined 2.7 percent this week. It’s still rallied 13 percent in 2013 as central banks around the world have pledged to keep interest rates low for a prolonged period of time.
A Labor Department report in Washington showed U.S. employers added 203,000 workers last month following a revised 200,000 gain in October, the strongest back-to-back gain since February-March. The median economist estimate called for a 184,000 advance. The jobless rate fell to 7 percent in November, a five-year low. Economists had forecast the rate would fall to 7.2 percent.
Investors are seeking to gauge when the Federal Reserve will reduce stimulus amid signs of an improving U.S. economy. Reports yesterday showed the annualized growth rate in the third quarter rose the most since the first three months of 2012, while jobless claims unexpectedly declined last week.
Out of the 17 western European markets open today, 13 benchmark indexes rose.
FTSE 100 6,551.99 +53.66 +0.83% CAC 40 4,129.37 +29.46 +0.72% DAX 9,172.41 +87.46 +0.96%
The Stoxx 600 retreated 3.3 percent in the past five days, posting its longest losing streak since June. The index fell 0.9 percent yesterday as European Central Bank President Mario Draghi said that financial-market developments and low domestic demand may hurt the euro area’s economy.
Berkeley Group jumped 11 percent to 2,539 pence. The U.K. housebuilder focused on London and the southeast said net income increased to 131 million pounds ($214 million) in the six months through October from 107.5 million pounds a year earlier. Berkeley declared an interim dividend of 90 pence a share.
LSE gained 2.7 percent to 1,624 pence. Bank of America raised its rating on the operator of Europe’s oldest independent bourse to a buy from neutral. The brokerage cited increasing evidence that LCH.Clearnet Group Ltd. its share of clearing and boosted its price estimate to 1,870 pence from 1,700 pence.
FirstGroup Plc added 5 percent to 116.6 pence. The rail company named John McFarlane as its chairman, effective Jan. 1. McFarlane, who is chairman of insurer Aviva Plc, will replace Martin Gilbert.
Givaudan lost 2.1 percent to 1,210 Swiss francs. Nestle, the world’s largest food company, plans to sell all of its 926,562 Givaudan shares at yesterday’s closing price to institutional investors. The Nespresso coffee maker held a 10 percent stake as of Dec. 31, making it Givaudan’s second-biggest owner. Nestle rose 1.1 percent to 65.20 francs.
L’Oreal SA (OR) gained 3.8 percent to 127 euros. Nestle is the second-biggest investor in the French cosmetics maker and restrictions on selling its 29 percent stake will expire in April. Many analysts say Nestle will probably sell and exit about 22.4 billion euros ($29.5 billion) richer or simply maintain the position since the holding today generates about a 10th of its net income.
Oil prices rose slightly , supported by expectations regarding the increase in demand after the U.S. government reported that the unemployment rate fell to a five-year low . Recall that the United States is the largest consumer of oil in the world , according to this , these economic data are very important in this regard. Reducing unemployment also increases the likelihood that the U.S. Federal Reserve will begin to reduce the amount of its bond purchase program , which can reduce support riskier assets such as oil and other commodities .
Report from the Ministry of Labor showed that the number of jobs outside agriculture in November rose by 203,000 . The unemployment rate fell by 0.3 percentage points to 7.0 %. This is the lowest level in five years. Economists had forecast an increase in the number of jobs to 184,000 and an unemployment rate of 7.2% .. Data for September and October were revised upward by a total of 8000.
Meanwhile, another report showed that the preliminary index of consumer sentiment from Thomson Reuters and the University of Michigan in December rose to 82.5 . In November, the index was at 75.1 . December's value was the highest since July. This is better than expectations of economists at around 76.2 ,
All the growth index is associated with households with incomes below $ 75,000 per year. In households with higher income mood compared to the previous month has not improved . Almost all the increase is attributed to improved economic outlook for the coming year .
We also add that an indicator of current economic conditions rose from 88.0 in November to 97.9 , higher than expectations of 90 , and the indicator of economic expectations rose from 66.8 to 72.7 , which is above expectations in 68 . Evaluation index of current economic conditions was the highest since July, and the index of economic expectations - in August. Expectations for inflation in the long term than one year increased from 2.9% to 3.0%. Expectations for inflation in the long term from 5 to 10 years decreased from 2.9 % to 2.8 %.
Higher prices also continue to help yesterday's data on U.S. GDP growth , which were much better than the experts' forecasts .
The price of January futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to $ 97.57 a barrel on the New York Mercantile Exchange.
January futures price for North Sea Brent crude oil mixture rose 24 cents to $ 111.25 a barrel on the London exchange ICE Futures Europe.
Gold prices rose sharply , recovering from session lows reached after U.S. data on the number of employees. Such dynamics was also due to the fact that many traders who were betting on further reduction , finally rushed to cover their positions .
Market immediately fell after data showed U.S. employers continued to add jobs at a steady pace , while the unemployment rate fell in November. These are signs of strong economic growth , which can stimulate discussion about what the Federal Reserve will announce the reduction of bond purchases this month .
The Labor Department said that the number of employees in non c / agricultural sector grew by 203,000 last month. In turn, the unemployment rate fell by three-tenths of a percentage point to 7.0% , the lowest level in the last five years. Economists forecast that employment in non-farm payrolls increased by 184,000 and the unemployment rate is at around 7.2%. Cumulative number of employees in September and October was revised to 8000 . Today's report may reinforce expectations that the Fed will soon slow down the pace of its bond purchases to $ 85 billion per month. At its meeting in October , officials said on the probable end of the program " in the coming months ."
Gold prices are now recovered some of its losses this week , but still show declines of 1.2 percent , after plummeting on Thursday as data showed that the U.S. economy grew in the third quarter, faster than previously anticipated.
As for the physical market, Indian gold award remained at record levels - $ 160 per ounce , which was reached on Thursday as the wedding season promotes demand , while supply remains low .
The cost of the December gold futures on the COMEX today dropped to $ 1236.00 per ounce.
U.S. stock futures rose, after American employers added more jobs than forecast.
Global markets:
Nikkei 15,299.86 +122.37 +0.81%
Hang Seng 23,743.1 +30.53 +0.13%
Shanghai Composite 2,237.11 -9.95 -0.44%
FTSE 6,545.87 +47.54 +0.73%
CAC 4,134.93 +35.02 +0.85%
DAX 9,176.9 +91.95 +1.01%
Crude oil $97.21 (-0.17%).
Gold $1229.60 (-0.19%).
USD/JPY Y101.00, Y101.25, Y101.50, Y102.50, Y102.80, Y103.00, Y103.25, Y103.30, Y103.50, Y103.60
EUR/USD $1.3490, $1.3500, $1.3590, $1.3600, $1.3610, $1.3735/40, $1.3800
GBP/USD $1.6150, $1.6300, $1.6350, $1.6400
EUR/GBP stg0.8200, stg0.8350, stg0.8450
USD/CHF Chf0.9150
EUR/CHF Chf1.2250, Chf1.2300
AUD/USD $0.9000, $0.9100, $0.9105, $0.9130, $0.9150
NZD/USD $0.8250
USD/CAD C$1.0480, C$1.0600
EUR/USD
Offers $1.3800, $1.3780/85, $1.3750, $1.3730/40, $1.3690/710, $1.3680
Bids $1.3650/40, $1.3610, $1.3590, $1.3550/40
GBP/USD
Offers $1.6450, $1.6400/05, $1.6380, $1.6360/65
Bids $1.6300, $1.6280/70, $1.6260/55, $1.6240, $1.6220
AUD/USD
Offers $0.9165/70, $0.9150, $0.9100, $0.9080
Bids $0.9015, $0.9005/00, $0.8980, $0.8950, $0.8900
EUR/GBP
Offers stg0.8440, stg0.8415/20, stg0.8395/400, stg0.8380
Bids stg0.8350, stg0.8330/20, stg0.8300/290, stg0.8260/50, stg0.8250
USD/JPY
Offers Y103.50, Y103.20, Y102.85/00, Y102.70, Y102.40-50, Y102.20/25
Bids 101.50, Y101.20-00
EUR/JPY
Offers Y140.20, Y140.00, Y139.80/85, Y139.60/65
Bids Y138.50/40, Y138.20, Y138.00, Y137.80, Y137.50
European stocks rose, ending a five-day losing streak, before a U.S. jobs report that will help investors assess when the Federal Reserve will reduce its monthly bond purchases. U.S. stock-index futures and Asian shares gained.
Investors are seeking to gauge when the Fed will reduce stimulus amid signs of an improving U.S. economy. Reports yesterday showed the annualized growth rate in the third quarter rose the most since the first three months of 2012, while jobless claims unexpectedly declined last week.
The Stoxx 600 retreated 3.3 percent in the past five days, posting its longest losing streak since June. The index fell 0.9 percent yesterday as European Central Bank President Mario Draghi said that financial-market developments and low domestic demand may hurt the euro area’s economy.
Berkeley Group jumped 8.6 percent to 2,477 pence for the biggest rally since June 2011. The U.K. housebuilder focused on London and the southeast said net income increased to 131 million pounds ($214 million) in the six months through October from 107.5 million pounds a year earlier. Berkeley declared an interim dividend of 90 pence a share.
A gauge of housebuilders in the FTSE 350 Index climbed 0.4 percent, a second day of gains. Taylor Wimpey Plc rose 2.7 percent to 108.9 pence, and Persimmon Plc, U.K.’s largest housebuilder, advanced 2.6 percent to 1,184 pence.
LSE rose 3 percent to 1,630 pence. Bank of America raised its rating on the operator of Europe’s oldest independent bourse to a buy from neutral. The brokerage cited increasing evidence that LCH.Clearnet Group Ltd. its share of clearing and boosted its price estimate to 1,870 pence from 1,700 pence.
Givaudan lost 3.5 percent to 1,193 Swiss francs. Nestle, the world’s largest food company, plans to sell all of its 926,562 Givaudan shares at yesterday’s closing price to institutional investors. The Nespresso coffee maker held a 10 percent stake as of Dec. 31, making it Givaudan’s second-biggest owner, according to data compiled by Bloomberg. Nestle rose 1.4 percent to 65.40 francs.
FTSE 100 6,522.9 +24.57 +0.38%
CAC 40 4,107.91 +8.00 +0.20%
DAX 9,130.62 +45.67 +0.50%
USD/JPY Y101.00, Y101.25, Y101.50, Y102.50, Y102.80, Y103.00, Y103.25, Y103.30, Y103.50, Y103.60
EUR/USD $1.3490, $1.3500, $1.3590, $1.3600, $1.3610, $1.3735/40, $1.3800
GBP/USD $1.6150, $1.6300, $1.6350, $1.6400
EUR/GBP stg0.8200, stg0.8350, stg0.8450
USD/CHF Chf0.9150
EUR/CHF Chf1.2250, Chf1.2300
AUD/USD $0.9000, $0.9100, $0.9105, $0.9130, $0.9150
NZD/USD $0.8250
USD/CAD C$1.0480, C$1.0600
Asian stocks swung between gains and losses, with the regional benchmark index set for its biggest weekly drop since August, as improving U.S. economic data fueled speculation the Federal Reserve may bring forward stimulus cuts.
Nikkei 225 15,299.86 +122.37 +0.81%
Hang Seng 23,743.1 +30.53 +0.13%
S&P/ASX 200 5,186.02 -11.94 -0.23%
Shanghai Composite 2,237.11 -9.95 -0.44%
Qantas Airways Ltd. sank 3.7 percent, adding to yesterday’s 11 percent drop, after Standard & Poor’s cut its credit rating on Australia’s largest carrier to junk status.
Nufarm Ltd. slid 1.6 percent in Sydney after Credit Suisse Group AG cut its rating on the supplier of farm chemicals.
Advantest Corp. jumped 6.1 percent on a newspaper report that cost cuts by the Japanese maker of semiconductor equipment reduced its break-even point.
05:00 Japan Leading Economic Index October 109.2 109.9 109.9
05:00 Japan Coincident Index October 108.4 109.9 109.6
The dollar headed for a fourth weekly decline against the euro as investors weigh whether U.S. payrolls data due today will encourage the Federal Reserve to consider trimming stimulus as early as this month. The U.S. economy added 185,000 jobs last month, a Bloomberg News survey shows before today’s Labor Department report.
U.S. GDP climbed at a 3.6 percent annualized rate in the third quarter, up from an initial estimate of 2.8 percent and the strongest since the first quarter of 2012, Commerce Department figures showed yesterday. Another report said first-time claims for jobless benefits dropped by 23,000 to 298,000 last week, according to the Labor Department.
The euro rose yesterday after the European Central Bank kept its benchmark rate unchanged and gave no indication that policy makers will introduce a negative deposit rate. ECB President Mario Draghi said at a press conference that while the central bank was “technically ready” to cut its deposit rate below zero, the Governing Council only discussed a negative rate “briefly” at its meeting. The deposit rate is what the ECB charges banks for parking excess cash at the central bank. It is set at zero.
The yen pared its first weekly advance in six against the dollar after the head of an advisory panel said Japan’s Government Pension Investment Fund needs to cut bond holdings right away.
EUR / USD: during the Asian session the pair fell to $ 1.3655
GBP / USD: during the Asian session the pair fell to $ 1.6320
USD / JPY: during the Asian session, the pair rose to Y102.20
A busy week for the markets comes to an end Friday, although there is no respite for traders as the US jobs report looms large. The European calendar gets underway from 0745GMT, when French October trade and budget numbers cross the wires. At 0815GMT, Swiss November CPI numbers are expected to cross the wires. Analysts are looking for CPI to fall 0.2% on month, with HICP down 0.3% on the month. Eurogroup Head Jeroen Dijsselbloem is scheduled to speak at an economic forum, in Frankfurt, starting around 0830GMT. At 0900GMT, ECB Governing Council member Ewald Nowotny will deliver a press conference on the economic forecasts for Austria, in Vienna. On the Continent, at 1000GMT, the Bundesbank will release its latest economic forecasts. German October manufacturing orders data will cross the wires at 1100GMT, with economists looking for a month-on-month fall of 1%. ECB Executive Board member Joerg Asmussen is slated to speak in Berlin at 1320GMT.
Oil (WTI) +0.32% $97.48
Gold -1.80% $1226.30
Nikkei 225 15,177.49 -230.45 -1.50%
S&P/ASX 200 5,197.96 -75.79 -1.44%
Shanghai Composite 2,247.06 -4.70 -0.21%
FTSE 100 6,498.33 -11.64 -0.18%
CAC 40 4,099.91 -48.61 -1.17%
DAX 9,084.95 -55.68 -0.61%
Dow -70.19 15,819.58 -0.44%
Nasdaq -4.83 4,033.17 -0.12%
S&P -7.92 1,784.89 -0.44%
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,3666 +0,53%
GBP/USD $1,6334 -0,29%
USD/CHF Chf0,8965 -0,64%
USD/JPY Y101,79 -0,55%
EUR/JPY Y139,09 -0,03%
GBP/JPY Y166,25 -0,85%
AUD/USD $0,9061 +0,38%
NZD/USD $0,8218 +0,28%
USD/CAD C$1,0651 -0,29%
05:00 Japan Leading Economic Index October 109.2 109.9
05:00 Japan Coincident Index October 108.4 109.9
05:00 Japan Coincident Index October 108.4 109.9
07:45 France Trade Balance, bln October -5.8 -5.1
08:00 United Kingdom Halifax house price index November +0.7% +0.8%
08:00 United Kingdom Halifax house price index 3m Y/Y November +6.9% +7.2%
08:00 Switzerland Foreign Currency Reserves October 434.7 435.3
08:15 Switzerland Consumer Price Index (MoM) November -0.1% -0.1%
08:15 Switzerland Consumer Price Index (YoY) November -0.3% -0.1%
09:30 United Kingdom Consumer Inflation Expectations Quarter IV +3.2%
11:00 Germany Factory Orders s.a. (MoM) October +3.3% -0.4%
11:00 Germany Factory Orders n.s.a. (YoY) October +7.9% +4.1%
13:30 Canada Unemployment rate November 6.9% 7.0%
13:30 Canada Employment November 13.2 7.6
13:30 U.S. Average workweek November 34.4 34.5
13:30 U.S. Average hourly earnings November +0.1% +0.2%
13:30 U.S. Personal Income, m/m October +0.5% +0.3%
13:30 U.S. Personal spending October +0.2% +0.4%
13:30 U.S. PCE price index ex food, energy, m/m October +0.1% +0.1%
13:30 U.S. PCE price index ex food, energy, Y/Y October +1.2% +1.1%
13:30 U.S. Unemployment Rate November 7.3% 7.2%
13:30 U.S. Nonfarm Payrolls November 204 184
14:55 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) December 75.1 76.2
20:00 U.S. FOMC Member Charles Evans Speaks
20:00 U.S. Consumer Credit October 13.7 14.6