Yesterday’s US unemployment claims gave the markets false hopes for today’s non-farm payrolls, which came in well below expectations. Worse still was the fact that the revision from last month has been downgraded by more than 30%. This has really shaken the markets, and seen questions over quantitative easing tapering reappear.
Once again, however, the bad news has been interpreted as good news and although equities initially fell away, the situation has swiftly turned around. While the day started looking very clear, after this afternoon’s economic data it is less so.
On the equity front, news for FTSE 100 stocks has not been particularly ground breaking. One item to be noted is that Air France/KLM has more than doubled its expected passenger numbers, underlining the disappointment that must be felt by the Ryanair board.
Currencies have also been dealt a surprise with the news that the Brics nations have joined together to form a $100 billion reserve to help support the current weakness, though the move is arguably a little late.