US jobs data provides little impediment to rate rise


(MENAFN- ProactiveInvestors)US non-farm payrolls numbers were bang in line with expectations signalling (in some quarters) a green light for the US central bank to up interest rates. 'The traffic lights turned from amber to green for the Fed as a healthy 215000 extra jobs were posted for the latest Non-Farm jobs data this afternoon. Data dependence and a specific focus from Yellen on the labour market means that despite a very slight miss on analyst forecasts it is difficult to see where further delays on an interest rate rise will occur' opined Alex Lydall senior sales trader at foreign exchange specialist Foenix Partners. 'With September looming as the first possible opportunity for a rate hike today's jobs report clearly puts the US on the path to an imminent decision be it next month or October. The battle between hawks and doves within the Fed has subsided and it merely becomes a notion of exactly which month this year we will see the rise and by exactly how much' Lydall suggested. Dennis de Jong managing director of rival forex outfit UFX.com concurs saying the figure has given Federal Reserve chair Janet Yellen and her colleagues the ammunition to pull the trigger on an interest rate rise next month 'and they aren't likely to hold back'. US benchmarks also seemed to be in agreement as they all headed lower. The S&P 500 was off six points at 2077 while the Nasdaq Composite tumbled 25 points to 5031. The old warhorse the Dow Jones shed 51 points at 17368. In corporate news Cheniere Energy was wanted as it was revealed that Wall Street predator Carl Icahn has built an 8% stake. Computer video chip specialist Nvidia powered higher after it released figures after the bell yesterday that comfortably topped market expectations. Confectioner Hershey was soft however after it posted a second quarter loss. Also on the slide after updating the market was online coupons firm Groupon. Social media giant Twitter's (NYSE:TWTR) shares rallied after hitting a record low as the search for a new boss weighs on the company. Since its shares peaked in December 2013 nearly US$30bn has been wiped off the value of the company at yesterday's closing price of US$27.55. Shares were 1% higher to US$27.76 today.  


ProactiveInvestors - UK

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