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.
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.