Home Impact producer Wall Street poised for weaker start after mixed payroll data

Wall Street poised for weaker start after mixed payroll data


  • The non-farm payroll is half of what economists expected
  • Bitcoin hits its lowest level since September
  • Crude Oil Prices Rise Amid Kazakh Turmoil
  • Gold is set for biggest weekly drop since November
  • Eurozone inflation hits record high

LONDON, Jan. 7 (Reuters) – Wall Street headed for a lower start on Friday as investors looked to interpret a “mixed bag” of payroll figures ahead of the last roller coaster session in the first week of scholarship of the year.

Employment in the United States grew by 199,000 less than expected last month due to the impact of a resurgent pandemic, well below the 400,000 predicted by economists, but data for November has been revised on the rise. The unemployment rate fell to highlight tighter labor market conditions.

S&P 500 e-mini stock futures and Nasdaq futures, which were firmer before the data, weakened, pulling European stocks to their daily low as investors studied the data on the wage bill to find clues to the pace of the Federal Reserve’s planned interest rate hikes. .

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After a new highs start to 2022, the mood changed on Wednesday after the December Fed meeting minutes signaled the central bank may have to raise interest rates sooner than expected .

Wall Street stabilized Thursday night, although analysts at ING Bank said the minutes still trickle into markets, pushing bond yields higher, hurting growth stocks and supporting the dollar.

“In terms of the effects on monetary policy, they will be minimal at best for now, as the path to monetary policy is currently quite clear,” said Art Hogan, chief market strategist at National Securities in New York.

“The takeaway is probably this gives the Fed cover to move in March, which was the earlier end of expectations before the report,” added Thomas Hayes, chairman and managing director of Great Hill Capital.

Oil was heading towards its best weekly gains since mid-December, fueled by supply concerns as unrest deepened in Kazakhstan, where an internet shutdown affecting the global computing power of the bitcoin network has helped send cryptocurrency to its lowest level since September.

The MSCI All Country stock index (.MIWD00000PUS) was slightly firmer at 744.23 points, although down 2% from Tuesday’s record. In Europe, the STOXX index (.STOXX) was down 0.5% to 485 points, also around 2% from Tuesday’s record.

The benchmark 10-year Treasury yield was 1.7655%, compared to 1.7461% before the release of wage data.

Eurozone inflation unexpectedly rose to 5% last month from 4.9% in November, a record for the monetary bloc, although unlike the Fed, the European Central Bank says prices will ease enough this year to avoid having to raise rates. Read more

Eurozone economic sentiment has fallen more than expected as the Omicron variant of the coronavirus sweeps across Europe. Read more

Spotlight on non-farm payrolls in the United States


Asian stocks mostly rose on Friday, breaking two days of losses.

The largest MSCI Asia-Pacific equity index outside of Japan (.MIAPJ0000PUS) climbed 0.7%, boosted by gains in Australia where the local benchmark (.AXJO) climbed 1.0%. 3%, led by bank stocks. Japan’s Nikkei (.N225) has changed little.

A Hong Kong-listed mainland real estate equity index (.HSMPI) jumped 4.6% on media reports that Chinese policymakers plan to exclude debt accumulated on the acquisition of distressed assets during assessment of compliance with the debt ratio. Read more

The dollar was expected to post large weekly gains, hitting a five-year high against the yen at 116.35 on Tuesday, hovering around 115.84 on Friday.

Oil prices have recovered, which some analysts have linked to news of Russian paratroopers arriving to quell unrest in Kazakhstan, although production in the OPEC + producing country remains largely unchanged until here. Read more

Brent crude futures rose 0.7% to $ 82.73 a barrel, and US crude rose 0.7% to $ 80.17.

Spot gold was $ 1,790 an ounce, slightly firmer the day after hitting a two-week low at $ 1,788.25 on Thursday, as rising US Treasury yields hurt the market. demand for non-interest bearing metal.

Bitcoin fell 3.7% to around $ 41,483 after hitting its lowest level since late September, as hawkish minutes from the Fed also sapped appetites for riskier appetites.

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Reporting by Kanupriya Kapoor in Singapore, Stella Qiu in Beijing and Alun John in Hong Kong; Editing by Kenneth Maxwell, Edwina Gibbs, Elaine Hardcastle, William Maclean, Barbara Lewis

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