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The Markets
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The Markets
by Proactive
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Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

Friday's agenda - one word - jobs

Jobs data is on the cards for global markets and investors Friday, as the US posts its monthly non-farm payroll number.

Hope you had a good bonfire and are ready for the day ahead.

One word - jobs.

That's what's on the cards for global markets and investors on Friday, as the US posts its monthly non-farm payroll number.

The figure is always closely monitored as a clue to the state of the US economy, but tomorrow's number, showing how many new roles have been created - will be particularly important in the light of recent Fed commentary.

In question is a monetary tightening of the econony, or put more basically an interest rate rise. When will this happen has been the question on everyone's lips. It's a topic, which divides opinion.

Earlier this week, Michael Hewson, market analyst at CMC Markets, said: "For most of this year the US central bank has been at pains to assure the market that rates will begin to rise this year, with June touted as the first potential trigger point.

"This then got pushed out to September as uncertainty about the global economy clouded sentiment," he said.

"When September came and went December became the most likely candidate before a series of disappointing US economic reports prompted investors to push back that prospect as well."

Hewson reckons such divergence between the most recent economic data and the Fed’s view on the US economy has only served to deepen investor uncertainty about how the Fed actually views the US economy.

The ADP private employment data on Wednesday, usually taken as an indicator, came in showing 182,000 new jobs were created compared to 183,000 expected.

Fed chair Janet Yellen has certainly hinted at a possible rate rise.

She said with the US economy performing well, it could be “appropriate” to raise interest rates next month (December), but of course that is not a concrete decision.

So tomorrow's number will certainly be interesting..

Significant announcements expected:

Interim: Telefonica SA (LON:TDE), 3i Infrastructure Ltd (LON:3IN).

Trading statement: Intu Properties (LON:INTU)

Economic: UK – Balance of trade, Manufacturing production, Industrial production, US – Non-farm payrolls.

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