Market Commentary: US Jobs See Equities Rise

Market Commentary: US Jobs See Equities Rise

On Friday markets were given a boost as a US jobs report showed unemployment in the world’s largest economy falling to a seventeen year low of 3.9% from 4.1% in the previous month.

While the headline number of 164,000 jobs added missed consensus expectations of 192,000 the bottom line is that the United States’ labour market continues to be on an upward trajectory, albeit at a slower pace.

While the market was initially softer on the back of the announcement, what mattered were closing prices: the Dow Jones Industrial Average managed to close up strongly (1.39%), while the S&P500 and Nasdaq Composite were higher by 1.28% and 1.71% respectively.

Below is a chart of the US Unemployment Rate, pre-1950s to present:

Locally, the All Share Index closed higher by 0.65%, while the Top 40 Index added 0.92%. The Financial 15 Index that was higher by 0.11%, the Industrial 25 higher by 1.42% while the Resource 10 added 0.26%.

In currencies, the South African Rand trades as follows:

USDZAR +0.05% to 12.53
GBPZAR +0.04% to 16.98
EURZAR +0.05% to 14.99

Gold trades at $1317, Platinum at $916 while Brent Crude Oil is at $75.67.

International Markets

This morning, Asian equities are as follows:

Nikkei 225 (-0.09%)
Hang Seng (+0.45%)
Shanghai Composite (+1.21%)

Latam Markets closed as follows:

Merval 25 (-3.22%)
Bovespa (-0.20%)
INMEX (-0.22%)

Aus miners:
BHP Bil (+1.54%)
Rio Tinto (-0.14%)
S32 (+1.86%)

FANGs:
Facebook (+1.49%)
Amazon (+0.56%)
Netflix (+2.69%)
Google (+2.41%)

FTSE Miners:

Anglo American plc (+1.12%)
BHP Billiton plc (+2.79%)
Glencore plc (+0.20%)

Alibaba closed higher by 3.53%, while Tencent is lower by 0.10% in afternoon trade in Hong Kong.

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