Skip to main content

US jobs growth "renders" market fears "irrational"

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 20, 2018.

 US employers hired the most workers in 10 months and wages accelerated at a robust pace in December, suggesting the economy would avoid a sharp slowdown.
US nonfarm payrolls increased a seasonally adjusted 312,000, beating economists' expectations for 177,000, according to a Reuters poll.
Average hourly earnings rose 3.2% in December, the quickest pace since 2009.
The unemployment rate rose to 3.9% in December from 3.7% in November.
The latest economic data was welcomed by Wall Street, which had been in a downward spiral towards the end of 2018 amid concerns the Federal Reserve would continue to raise rates as the economy slowed.
In New York, the Dow Jones rose 2%, the S&P climbed 1.85% and the Nasdaq soared 2.37% in early trading.
The jump in payrolls in December would seem to make a mockery of market fears of an impending recession," Paul Ashworth, chief economist at Capital Economics in Toronto, told Reuters.
"This employment report suggests the US economy still has considerable forward momentum."
Investors had been concerned about the health of the US economy, which is in the ninth year of expansion, after surveys showed a sharp decline in consumer confidence and manufacturing activity last month.
The upbeat US jobs data is in sharp contrast to a report showing Chinese factory activity contracted for the first time in 19 months in December and weak manufacturing across Europe.
The Federal Reserve, which has raised interest rates four times in 2018, is likely to push ahead with two more rate increases this year.

Labels:

Comments

Post a Comment

Popular posts from this blog

Trump trade war poses threat to eurozone economy, warns ECB boss Mario Draghi

Draghi flagged 'the threat of protectionism' but still ended the central bank's €2.6 trillion money printing stimulus programme. The boss of the European Central Bank, Mario Draghi, has warned that Donald Trump’s trade war is hurting the eurozone. Unveiling weaker growth forecasts in Frankfurt on Thursday, Mr Draghi flagged “the threat of protectionism”. “When we look at all these drivers of the recovery, yes, it is true, it is just weaker. It is just weaker and it’s not just one off, it has been weaker for a while,” he said. “The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility.” Nevertheless, the ECB also confirmed that this month will mark the end of its €2...
Post a Comment
Read more

This is what China is doing to avoid an economic slowdown.

People's Bank of China steps in to release 800bn yuan (£92bn) for new lending to households and businesses. China's central bank has relaxed the rules on how much capital the country's lenders must hold in cash reserves as it seeks to maintain growth. It is the fifth such time during the last year that the People's Bank of China (PBoC) has made such a move. The measure comes amid growing concerns about weakening demand from Chinese consumers and businesses. Apple shocked Wall Street when, on Wednesday evening, it said sales in its most recent quarter would be weaker than expected. It blamed a  drop in sales in China for the shortfall  and, specifically, the trade war between China and the United States instigated by President Donald Trump. Its warning sparked a sell-off in global stock markets already nervous about the possibility of a slowdown in the world's second-largest economy. China's economy is thought to have grown by just 6.5% in 201...
Post a Comment
Read more

Pelosi, Nielsen clashed during border-security meeting: 'I reject your facts,' House speaker said, according to report

"I reject your facts," House Speaker Nancy Pelosi, left, reportedly said to Homeland Security Secretary Kirstjen Nielsen during a border-security meeting this week. "These aren't my facts," Nielsen reportedly responded. "These are the facts." House Speaker Nancy Pelosi and Homeland Security Secretary Kirstjen Nielsen got into a tense confrontation this week, with the California Democrat interrupting Nielsen’s presentation on border security and illegal immigration, telling her “I reject your facts.” The clash between the top House Democrat and a key member of President Trump's Cabinet occurred during a Wednesday meeting in the White House amid the impasse over the government shutdown, with Trump standing firm and demanding $5 billion for the border wall. At one point during the meeting, according to the  Wall Street Journal , Pelosi interrupted Nielsen, who was citing statistics related to the border, including how many criminal illegal ...
Post a Comment
Read more