The April US Non-Farm Payrolls came in at 253 000, which is much hotter than the expected 185 000, which could see the US Federal Reserve recalibrate its rate hike approach.
Unemployment, another big focal point for the Fed officials, moved slightly lower from the previous month to 3.4%, while the US Average Hourly Earnings (MoM) ticked to 0.5% in April. The benchmark S&P 500 Index and the US 2- and 10-Year Treasuries also saw volatility enter the market after the announcement but stabilised as the market digested all the jobs data.
According to the US Bureau of Labor Statistics report, employment across various sectors picked up in April, which will be a focal point for the Fed, along with the US CPI data release scheduled for the 10th of May.
Sources: Bloomberg, US Bureau of Labor Statistics.
Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27231). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change, which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.