US equity markets finished mostly higher yesterday, although ended the session a distance from highs. It’s worth noting that the markets closed before US-Syrian airstrikes. The Dow Jones closed less than 0.1% higher as gains for Caterpillar offset Procter & Gamble losses, while the S&P500 was led higher by the Energy sector, although note Tech-focused Nasdaq once again outperformed its counterparts
Accendo Markets Analyst, Mike van Dulken commented – “Geopolitical risk has cranked up a notch following overnight US air-strikes on a Syrian airbase in response to this week’s shocking chemical attacks. This adds to yesterday’s jitters about hawkish Fed minutes, concerns about overstretched equities and Trump trade validity light of limited policy progress.”
On what was already set to be a busy day – with UK manufacturing and industrial production figures, the US non-farm jobs report and a Mar-a-Largo visit from China’s President Xi, Donald Trump has added another complication by launching this air strike on Syria.
Spreadex Analyst, Connor Campbell suggested – “Understandably this decision, which has been described as a ‘significant blow’ to US-Russia relations by the Kremlin, has led to a nervy open from the European markets. The FTSE slipped 0.1% after the bell, keeping it just under 7300; the UK index didn’t fall any further thanks to the gains made by Brent Crude – the black stuff hoping this morning’s news may impact oil production – and gold – a safe-haven in times of market-angst leading to a healthy start from the likes of BP, Shell, RandGold Resources and Fresnillo.”
With Non Farm Payrolls out today, investors can expect to see some volatility in the major Currency Pairs and Indexes. The U.S. has seen over 6 years of job growth and its recent strength, coupled with the resulting creation of jobs, has boosted investor confidence in global indices and seen many traders moving into safe haven currencies, despite the recent rise in U.S. interest rates.
The FxPro Analyst Team commented – “The market will be looking for continued strength in the data in order to continue these trends. If we see an NFP number < 160K, coupled with an Unemployment Rate >4.7%, the markets will see USD come under downward pressure, which will at once also negate any increase in U.S. interest rates for at least another quarter or more.”
“An NFP number of >210K, coupled with an Unemployment Rate that remains at 4.7% (or better), will likely result in USD strengthening. This will confirm the FOMC recent interest rate decision and allow them to accelerate the likelihood of another rate rise sooner than expected.”