News & Analysis
US Jobs growth drives markets – Dow Jones 440 higher – NASDAQ hits new records! Oil surges 3.2%; Bitcoin loses 24% during the week gaps higher this morning.
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US markets – surged after the non-farm employment change showed an increase of 313,000 jobs in February, smashing the 205,000 that was expected. No matter how you look at it this is a massive number. Average earnings increased to 0.1% missing the expected 0.2%. Reaching 2.6% on an annualized basis, the market sees this as an acceptable level. We saw the reaction to fast-paced earnings growth last month when equity markets sold off. Mexico and Canada are exempt from the new Tariffs. News coming out over the weekend Australia will also be exempt. There’s nothing like job creation to get buy buttons firing. The indexes fired on Friday night, the Dow Jones closed 440.53 points higher the S&P500 closed 47.60 higher and the NASDAQ closed at new all-time highs gaining 132.86 to finish at 7560.81. Erasing losses seen in the correction.
The Cboe Volatility Index (VIX), widely considered to be the best gauge of fear in the market, hit its lowest level since Feb. 1 and traded more than 11.5 percent lower at 14.62.
Oil – surged following higher equity markets, buyers added 179 cents. Also bullish for oil prices, Libya’s 70,000 barrels per day El Feel oilfield stayed shut despite the Petroleum Facilities Guard saying it had reached a deal to reopen it, according to a field engineer and local mediator. Despite the surge, many analysist remain bearish, US production continues to weigh as a macro influence. This morning price opened with a small lower gap that has been filled. Price trading just back above $62.00. Buyers could see resistance again at $62.45 if price returns to that level.
European markets – finished mixed and failed to launch really, with solid US gains we saw small gains on the FTSE +21.27, the CAC +20.30 and the DAX finished slightly in the red losing 8.89. Worries of a potential trade war dragged on investor and trader sentiment. While the majority of Europe’s sectors higher, autos fell 0.12 percent amid heightened fears of a global tit-for-tat trade war. Looking into the sector, Germany’s Schaeffler and Continental both slipped to the bottom of the sector, with the latter suffering from a rating downgrade from CFRA Research.
Forex – the USD had a mixed night data being the main influence, Canadian employment data was mixed US employment data jumped on the creation side. Sellers took to the USDCAD driving it 85 pips lower. 156 pips lower for the week as a correction is now underway. The AUDUSD had a strong finish to the week adding 58 pips. Tariff news has given buyers further support this morning price trading 20 pips higher above .7850. The EURUSD failed to move on Friday, trading in a choppy session finishing the week slightly lower. The ECB and tariffs cutting into buyer confidence, but sellers cut up by a weaker USD. The GBPUSD jumped adding 115 pips and has seen further buying this morning adding 50 pips after opening lower this morning. The JPY slid on Friday closing lower to the majors. The USD making its main gain to it on Friday adding 58 pips. The EURJPY and GBPJPY are confirming higher lows set up on Friday this morning.
Bitcoin had a week to forget from an ASK point of view. Price fell by 24% this week as a raft of negative influences hit the cryptocurrency. Price hit a weekly low of 8320 on Friday. Buyers did regroup closing just below 9000. This morning price is trading back above 9000 hitting 9700. Sellers are currently in control after buyers were stopped at a previous low.
Gold – made an $8.80 decline on Friday before recouping all of it’s loses to close $1.78 higher. This morning price action has been flat. We’re watching a higher low and support retest that was seen on Friday for further signs buyers may continue higher.
Good trading from Eightcap.
Sources; CNBC. All times are AEDST
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