Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Dollar sags, stocks rise after U.S. jobs temper rate expectations

Published : , on

By Amanda Cooper

LONDON (Reuters) -The dollar fell on Friday, while stocks extended gains after data painted a picture of a U.S. economy that is creating jobs, but is starting to slow, tempering expectations for the Federal Reserve to keep raising rates as fast to fight inflation.

The Bureau of Labor Statistics said 261,000 workers were added to non-farm payrolls in October, above expectations for an increase of 200,000, but so did the unemployment rate, which rose to 3.7%, suggesting that some of tightness in the labour market could be easing.

Wages meanwhile rose 4.7% year-on-year last month, after a 5% rise in September. The dollar fell against other major currencies, while stocks edged higher in volatile trade.

“There are signs that wage inflation has peaked, and as we move closer to recession that number should come down,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“This is an indication that with recession looming things are going to get ugly going forward. In a recession, wages don’t rise – they stagnate. This could be the last hurrah of hourly wages moving to the upside,” he said.

The MSCI index of global shares rose 0.6% on the day, breaking two straight days of losses, but still headed for a near-3% weekly loss, after more big rate hikes this week from the Fed and the Bank of England.

U.S. stock index futures were last up 0.7-0.9%, compared with gains of around 0.6-0.8% earlier on.

Investors’ risk appetite was running fairly high on Friday, following signals from China that the government could relax some of its stringent restrictions around COVID.

China will make substantial changes to its “dynamic-zero” COVID-19 policy in coming months, a former Chinese disease control official told a conference hosted by Citi on Friday, according to a recording of the session heard by Reuters.

Chinese health authorities will hold a press conference on Saturday on COVID-19 prevention, according to a notice that said officials from the National Bureau of Disease Control and Prevention would attend. No other details were immediately available.

The offshore yuan staged its second-biggest one-day gain versus the dollar in at least a decade, while China-sensitive assets, such as mining stocks, luxury goods makers and commodities rallied sharply, despite China reporting the highest daily count of new local COVID-19 cases in six months on Friday.

“We don’t think we’re going to see any meaningful change in policy until at least after the two sessions meeting in March. So that’s a long way away between now and then,” ING regional head of research Robert Carnell said earlier on Friday.

The Fed on Wednesday set its target interest rate another 75 basis points higher to a range between 3.75% and 4.00% and Chair Jerome Powell said later at a press conference that it was “very premature” to think about slowing the pace of monetary tightening.

In currencies, sterling rose 0.7% against the dollar to $1.1232, paring some of Thursday’s 2% drop after the Bank of England said the economy as facing a two-year recession even as it raised rates by the most since 1989.

“The dollar reception to the data is tepid (in large part because of factors like China/weekend), but multi-week this data is helpful,” Deutsche Bank strategist Alan Ruskin said.

In commodities, oil rose, fuelled by a weaker dollar and hopes for a relaxation of zero-COVID rules in China, which is home to some of the world’s biggest energy consumers. [O/R]

Brent crude rose 3.6% to $98.08 a barrel, while U.S. crude gained 4.1% to trade at $91.78 a barrel.

With the dollar on the back foot, gold rose 1.7% to $1,657 an ounce, heading for its largest one-day increase since Oct. 21. [GOL/]

(Additional reporting by Stephen Culp in New York; Editing by David Evans)

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post