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.
The US 500 is trading at 1977, up 0.1% on the day as its bull run shows no sign of slowing down. Traders have a lot to focus on this afternoon, with the European Central Bank interest rate decision at 12.45pm, followed by the ECB press conference and non-farm payrolls at 1.30pm. Markets are not expecting a change to the base rate from the ECB, so the focus will be on the US jobs report where analysts expect an increase of 215,000 jobs added to the payrolls and for unemployment to remain unchanged at 6.3%.
Yesterday, Janet Yellen stated that monetary policy has ‘limited’ capability in addressing economic stability. The Federal Reserve will be looking at a broad range of economic indicators not just unemployment. This suggests to me that quantitative easing will remain in place for the foreseeable future even if the jobs report is strong.
The 50-day moving average of 1925 is providing support to the US 500, and if the market breaks 1980 the next target will be 2000.
Brenda Kelly and Chris Beauchamp are hosting a non-farm payrolls webinar at 12.45pm today, register here.