US non-farm payrolls and the possible implications for interest rates will dominate the market’s attention tomorrow.
Some 531,000 jobs were created in October and the consensus forecast currently is for between 560,000 and 600,000 to have been added in November.
In itself, that’s a healthy increase but any overshoot would really set the inflation hares running.
Comments from the Fed chief Jerome Powell this week were hawkish and followed minutes of the last US Federal Reserve rate-setting committee meeting that indicated a hardening tone toward monetary policy.
So far, the Fed has agreed to taper its US$120bn quantitative easing (QE) programme by US$15bn a month or effectively stop injecting money into the system from June 2022, which is when many economists also expect to see a US interest rate rise.
On the flip side is the omicron factor. Another very strong set of jobs numbers might strengthen the Federal Reserve’s resolve at its next meeting, set for 14-15 December, but the dial might well move the other way now that the Covid-19 variant has arrived in the US and especially if the jobs total misses the forecasts.
Friday 3 December
Interims: Duke Royalty Ltd, Industrials REIT Ltd (LSE:MLI, JSE:MLI) (Industrials REIT Ltd (LSE:MLI, JSE:MLI), Industrials REIT Ltd (LSE:MLI, JSE:MLI)), Mind Gym Limited
AGMs: Bluefield Solar Income Fund (LSE:BSIF) (Bluefield Solar Income Fund (LSE:BSIF)) Limited, Ferro-Alloy Resources Limited, Fidelity Asian Values PLC (LSE:FAS) (Fidelity Asian Values PLC (LSE:FAS)), Ruffer Investment Co ltd
Economic data: Markit Services PMI (UK), Nonfarm payrolls (US), ISM Services PMI (US)