MORNING BRIEFING: Non-farm Payrolls today at 14:30 CET, G7 meeting tomorrow.

[RTFX-Trading]

MORNING BRIEFING: Non-farm Payrolls today at 14:30 CET, G7 meeting tomorrow.

What’s new:
Japan: Better jobs data as jobless-rate falls to 5.5%
Euro-zone: Manufacturing PMI rose to 49.3 versus 49.0 expected.
Euro-zone: Unemployment rate reaches 9.6%.
United Kingdom: Manufacturing PMI falls below 50 to 49.5.
United States: Jobless Claims increases to 551’000.
United States: Fed: Lockhart doubts that the US will go years without the need to raise rates.

Today:


Overnight Rates and Indices:
EURUSD: 1.4562 – 1.4502.
USDCHF: 1.0435 – 1.0402.
GBPUSD: 1.5957 – 1.5882.
EURJPY: 130.41 – 129.64.
USDJPY: 89.65 – 89.21.
DowJones: 9'509.28 -2.09%.
NASDAQ: 2’057.48 -3.06%.
S&P 500: 1’029.85 -2.58%.
Nikkei: 9’732.96 -2.46%.
Shanghai: 2’779.43 +0.90%,
Gold: $999.95
Crude Oil: $70.21
 
Comments:

Risk appetite suffered a major blow yesterday evening as investors sold riskier assets on the back of mixed data from the US. Better than expected home sales were ignored by the markets, which instead focused on the ISM Manufacturing report and the surprise increase in jobless claims. The Dow Jones dropped 203 points, while the NASDAQ and S&P 500 dropped 64 and 27 points respectively. The Nikkei is down 251 points overnight. The Dollar was the beneficiary from this fall as it gained across the board. The Greenback reached 1.4502 against the Euro, 1.5882 against the Pound, 0.8671 and 0.7091 versus the Australian and New Zealand Dollar.

With today’s unemployment data and Non-farm payrolls from the US at 14:30 CET, and G7 meeting from Istanbul Saturday, investors are weary that negative numbers may severely dent risk appetite further. Finance Ministers and central bankers are expected to attend the G7 meeting, therefore market-moving comments are forthcoming. The markets will pay particular attention to comments about US Dollar strength and any remarks from European delegates regarding the strength of the EURUSD. Japan’s MoF may also use this opportunity to comment about the recent rise of the Yen.

Have a good week-end

Emman Xuereb

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