Market Brief: Dow Unable to Hold 29K After NFP Miss
Matt Weller, CFA, CMT January 10, 2020 9:01 PM
View our guide on how to interpret the FX Dashboard.
- The US Non-Farm Payrolls report was today’s marquee release, with the jobs report showing a disappointing 145k jobs were created in December (vs. 162k eyed) and weak wage growth of just 0.1% m/m (vs. 0.3% eyed – though November’s reading was revised a tick higher to 0.3% itself).
- In any event, one soft jobs report alone is unlikely to change the Fed’s neutral outlook, so the market impact of the release was relatively small.
- FX: The Australia dollar was the strongest major currency on the day, boosted by a strong retail sales report Down Under. The British pound and Canadian dollar were the weakest major currencies, despite the release of a solid Canadian jobs report this morning.
- Commodities: Oil dropped nearly 1% on the day (see our oil market week ahead report for key releases and themes to watch next week, while gold ticked higher in quiet trade.
- US indices closed slightly lower on the day after the DJIA peeked above 29,000 for the first time ever this morning. European equities closed essentially flat on the day.
- REITs (XLRE) were the strongest sector on the day, and along with Utilities (XLU), one of the two sectors to trade higher today. Financials (XLF) and Industrials (XLI) were the two weakest sectors.
- See our full week ahead report for a preview of the key data, themes and trends to watch in the coming week!
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.