t’s been a big day for news and an active on for trading so far.
UK markets shot up right after election polls closed and have continued to rise after exit polls then official results indicated a big win for the Conservatives, and big loss for Labour at the hands of the Scottish Nationalists. A small Conservative majority shored up support for both the FTSE
and GBP, making Sterling the top performing currency on the day.
US nonfarm payrolls came out and were mixed. Although the headline number met expectations, last month’s report was revised downward by over 40K to under 100K. US stocks have taken this as a moderately positive event while USD has been choppy on the news. Overall, this news still leaves it likely that a June interest rate liftoff could be pushed off to much later in the year.
The Canadian jobs report came in better than expected driven by a big rebound in full time jobs, a positive sign for the economy as it indicates that the lower loonie may be helping to offset some of the damage done by lower oil prices. CAD surged initially on the news but has since stabilized near where it was before the report.
Overall, markets remain range bound with both bulls and bears able to take something from the employment reports to support their cause. This means that we may see US markets remain range bound for some time to come which could create swing trading opportunities on both sides.
CBS $0.78 vs street $0.75
Economic reports released overnight and this morning include:
UK election out of 650 Conservatives 330
Scottish National 56
Liberal Democrats 8
US nonfarm payrolls 223K vs street 230K
US nonfarm payrolls previous revised down to 85K from 126K
US private payrolls 213K vs street 225K
US private payrolls previous revised down to 94K from 129K
US unemployment rate 5.4% as expected
US participation rate 62.8% vs previous 62.7%
US average hourly earnings 2.2% vs street 2.3%
Canada jobs change 46.9K vs street (5K) and previous 28K
Canada full-time jobs 47K vs previous (28K)
Canada part-time jobs (66K) vs previous 56K
Canada unemployment rate 6.8% vs street 6.9%
China trade balance $34.1B vs street $39.6B
China exports (6.4%) vs street 1.6%
China imports (16.2%) vs street (12.2%)
Germany industrial production 0.1% vs street 0.5%
Germany trade balance €23.0B vs street €20.0B
UK Halifax house prices 8.5% vs street 7.8%
UK trade balance (£2.8B) vs street (£2.4B)
Greece consumer prices (2.1%) vs street (2.0%)
Canada housing starts 181K vs street 182K
Economic reports due later today include:
1:00 pm EDT US Baker Hughes drill rig count previous 905
9:30 pm EDT China consumer prices street 1.6%
9:30 pm EDT China producer prices street (4.5%)
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