Markets pause ahead of non-farm payrolls

Today’s US non-farm payrolls dominate City thinking.

Source: Bloomberg
  • Disaster strikes BHP Billiton’s operations in Brazil
  • IAG sees clear skies ahead as it upgrades its long-term guidance
  • Markets await crucial NFP figure

The first Friday of the month once again sees traders’ attention dominated by US non-farm payrolls. This time last month the data dashed Janet Yellen’s hopes of raising interest rates before the end of the year as the headline figure, the revision and the average hourly earnings all undershot expectations.

For the first time in 18 months expectations are below 200,000, a reflection of how dented optimism is after last month. The disaster in Brazil has seen BHP Billiton’s iron ore operations shut down, adding to the pressures the mining company has felt with weak commodity prices.

IAG continues to feel the benefits of low fuel costs and improving passenger numbers, and as such the firm has upgraded its long-term outlook for the next five years.

The rollercoaster ride that CRH shareholders have been enduring continues – the shares are climbing this morning thanks to expectations that the firm will benefit from increased US highway spending.

FX traders look set for another day of volatility after hearing from the Bank of England yesterday. They will now have the opportunity of assessing how strong US non-farm figures are. Given that December is now much more of a possibility for rate increases, today could be a make or break moment for the December 2015 rate hike believers.

Ahead of the open we expect the Dow Jones to start 20 points lower, at 17,843.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.