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Markets edgy ahead of UK unemployment data – business live

Discussion in 'Market News' started by Lily, Sep 14, 2016.

  1. Lily

    Lily Forum Member

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    Government bonds are under pressure, as investors look for signs of Brexit woes in the latest British jobs report (due at 9.30am)

    7.52am BST

    Financial traders are getting edgy because they fear the US central bank might raise interest rates soon, even though the global economy looks fragile.

    Naeem Aslam, chief market analyst at Think Markets, explains:

    Lower global demand has made investors uncomfortable with the idea that the Fed is still gritty to increase the interest rate.

    The fact is that investors do not mind if the Fed is going to hike up the interest rate, as this was the situation a few months ago. What is making them wary is that the economic data has started to deteriorate and the Fed has very solid stance with respect to a rate hike.

    Money safer under mattresses, CBs out of mojo & bond bubbles are talk of the mkt press. 10y note 1.73%, ¥ down, stocks down, epic sunrise!

    The S&P 500 has chalked up 8 fresh record highs this year, but is now flat since February 2015. Is the bull market turning?
    HT @Convertbond

    7.43am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    Once again, we’ll be squinting at the economic tealeaves for signs that Britain’s economy has either shrugged off June’s Brexit vote, or been dragged down by it.

    Although employment gains are set to slow markedly in coming months on this occasion even if the level holds flat with that seen in June it would result in increased employment of over 150k in the last three months.

    We look for the unemployment rate to hold at 4.9% and for average earnings growth to slow a little; the including bonus measure should come at 2%, year-on-year, and the ex-bonus measure at 2.1%.

    Given the decline in jobless claims in July this morning’s ILO unemployment number for July is likely to remain unchanged at 4.9%, and could even improve to 4.8% at a pinch, which would suggest for now little evidence of a negative spill over.

    Asian equities traded with little firm direction in the wake of the downbeat Wall Street lead with energy prices hampering sentiment

    Looking ahead, highlights include UK Jobs report, DoE Crude Oil Inventories, New Zealand GDP and a speech from RBA Assist Gov Debelle

    Continue reading...
     

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