Non-farm payrolls fails to impress

The jobs report data from the US was by-and-large a disappointment, and both the equity markets and the US dollar plunged on the back of it.

US flag
Source: Bloomberg

Nearly all aspects of the jobs report dropped on the month, and missed expectations. The headline figure for September came in at 142,000, and traders were expecting 201,000 jobs to have been added.

The net revision for the previous two months was down 59,000. The average earnings on the month remained flat, and on a yearly basis increased by 2.2%, while the market anticipated a rise of 2.4%. The health care sector continued to add jobs, while the mining industry is still shedding numbers. On the bright side, the unemployment rate held at 5.1%.

The US dollar dropped immediately after the figures were announced and the possibility of a rate rise in December has been diminished, and for the same reason gold has enjoyed a bounce.

Equity traders viewed the figures as a confirmation that the US economy is growing at a slower rate as the cool down in the emerging markets takes its toll.

Rallies in stock markets haven’t lasted long recently and additional evidence of a slowing jobs growth in the largest economy in the world has added to concerns.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.