The US Bureau of Labour Statistics non-farm payrolls report came in hotter than expected for August amidst a mixed inflationary environment. The payrolls report showed an increase of 187,000 new jobs, higher than the 170,000 expected.
The spotlight fell on the Unemployment Rate, which rose 0.3% to 3.8% for August as the number of unemployed persons increased by 514,000 to 6.4 million. The unemployment rate showed little change from a year ago when the unemployment rate was at 3.7%. The lower unemployment rate might be good news for the US Fed, which could see an interest rate pause in September.
As measured by Average Hourly Earnings, annual wage inflation was lower at 4.3% from the 4.4% expected. US Index Futures got a bid in the market after the NFP announcement as short-term bond yields took a tumble as the US Dollar lost some steam.
Piece written by Barry Dumas, Head of Client Education
Sources: Bloomberg, U.S. 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.
