US open: Futures mixed after huge NFP miss
Fiona Cincotta September 3, 2021 9:09 PM
US futures are set for a mixed start after NFP report missed expectations by a mile. 253K jobs were added in August well below the 750k forecast. The data pushes back on the Fed tapering bond purchases.
Dow futures -0.06% at 35420
S&P futures +0.01% at 4534
Nasdaq futures -0.8% at 156011
FTSE +0.07% at 7173
Dax +0.02% at 15845
Euro Stoxx -0.26% at 4220
Futures trade lower after NFP
US stocks are set for a weaker start following the US non-farm payroll report. The closely watched US Labour Department’s job report revealed that 253k new jobs were added in August well below than the 750k that were forecast. However, the July number was upwardly revised to over 1 million jobs to 1053k which has helped to offset some of the disappointment.
This was the smallest gain in job creation in 7 months. The fall in job creation comes as the delta variant has seen US covid cases rise but also amid difficulties filing positions.
The data supports the view that the Fed will hold off on tapering its bond purchases until later in the year. The Fed will still want to see more progress in the labour market recovery, as Powell said at the Jackson Hole Summit.
The unemployment rate declined to 5.2% this was in line with analysts’ forecasts and down from 5.4%. Average wages rose by more than expected to 4.3% YoY well ahead of the 4% forecast
Where next for Dow Jones?
The Dow Jones trades within its acceding channel dating back to mid-June. However, the bearish reversal on the RSI suggests that momentum is slowing. The price has struggled around 35500 this week with a move above 35600 needed to reach fresh all-time highs. A move below 35150 could negate the near-term uptrend. A move below the 200 sma at 34600 could see the sellers gain traction.
FX – EUR shrugs off slowing growth and declining retail sales
The US Dollar is falling as bets cool over the Fed moving to tighten policy following huge miss in NFP. More evidence of the recover in the jobs market will be required by the Fed to before it starts tapering bond purchases,
EURUSD is treading water despite weak retail sales figures and as a supply shortage saps the strength of the economic recovery in the Eurozone. Business activity remained strong in August falling to 59 down from July’s 15 year high of 60.2. This was down from the flash 59.2 treading earlier in the month. Growth momentum is fading amid supply chain issues and amid the rise of delta covid cases.
Eurozone retail sales fell by 2.3% in July as the consumer driven bounce back slowed at the start of Q3. The figure comes after retail sales jumped in June by 1.5%. Sales have been volatile amid the reopening.
GBP/USD +0.12% at 1.3856
EUR/USD +0.17% at 1.1893
Oil edges higher ahead of OPEC+ announcement
Oil is edging higher for the third straight session. Oil is set to finish the week 2% higher amid easing fears over the demand outlook and expectations of a slow recovery for the US Gulf Coast export and refining hub from the hurricane that hit earlier this week. Oil prices have remained supported thanks to larger than forecast inventory draws, even as OPEC agreed to stick to the plan to add 400k barrels per day over the coming months.
Baker Hughes rig count data will be in focus later today.
US crude trades +0.29% at $70.06
Brent trades +0.59% at $73.36
14:45 US Markit Services PMI
15:00 ISM Services PMI
18:00 Baker Hughes Rig Count
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels
- Place the trade.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.