Date: Saturday 04 Aug 2012
US benchmarks surged on Friday after some better-than-expected jobs data provided a lift to sentiment.; in fact, the Dow Jones Industrial Average registered its best weekly gain of 2012 so far.
While the US jobless rate increased from 8.2% to 8.3% in July, the US economy increased payrolls by 163,000, much better than the 100,000 gain expected. "A stronger-than-expected report, despite the small increase in the unemployment rate, and one that should partially ease the concerns of policymakers," said analyst Peter Newland from Barclays Capital.
The positive surprise may herald a small trend that could, at the least, see the Federal Reserve postpone any further round of quantitative easing past September.
Meanwhile, markets were still reacting to yesterday's comments from ECB President Mario Draghi. Speaking yesterday after a key interest rate meeting he indicated ECB bond purchases will be “on the short end of the yield curve.”
At the time this was an anti-climax after a week during which the market had begun to believe on intervention across the full range of maturities was on the cards. But with 24 hours of reflection, investors are beginning to see what the Eurozone has up its sleeve.
Investors were tracking shares of Facebook, which today came close to a new record-low to then go and bounce higher, although its peer Linkedin was moving up on the back of its latest quarterly figures.
Boeing won 94 orders for its 737 aircraft from Singapore Airlines and China Southern Airlines; when combined those two deals have a list price of $8.3bn.
Knight Trading was also in the spotlight; it is working with Goldman Sachs and Sandler O’Neill & Partners to find a private capital outfit that may save it, Bloomberg reports.
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