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. .

Investing

Wall Street muted on jobs growth as inflation, Delta fears weigh

2021 08 06T080844Z 1 LYNXMPEH750FV RTROPTP 4 BRITAIN FINANCE - Global Banking | Finance

By Lawrence Delevingne

BOSTON (Reuters) -A positive jobs report spurred Wall Street to push some stocks and Treasuries higher on Friday, but investor optimism was tempered by looming inflation, declining Federal Reserve stimulus and the spread of the Delta variant of the coronavirus.

Nonfarm payrolls increased by 943,000 jobs in July after rising 938,000 in June, the Labor Department said in its closely watched employment report on Friday, suggesting the economy maintained its strong momentum amid demand for workers in the labor-intensive services industry. Economists polled by Reuters had forecast payrolls increasing by 870,000 jobs.

“It’s a number that’s hard to say anything but positive things about,” Sameer Samana, a market strategist at Wells Fargo Investment Institute in St. Louis, said in an interview. “Especially with the Delta variant kind of perking up, it would be much more confidence-building for the market to have a very strong economy.”

Still, stocks gains were muted. The Dow Jones Industrial Average rose 110.29 points, or 0.31%, to 35,174.54, the S&P 500 gained 4.76 points, or 0.11%, to 4,433.86, and the Nasdaq Composite dropped 44.28 points, or 0.3%, to 14,850.84.

Peter Cardillo, an economist with Spartan Capital Securities in New York, said the jobs number was “solid” but that it indicates “inflation has more staying power and is not necessarily temporary.”

Treasury yields extended their gains, having earlier been helped by the drop in jobless claims.

Benchmark 10-year Treasury yields rose to 1.2835%, approaching a week high after their U.S. close at 1.217% on Thursday, and helping the dollar, which rose against the yen to a week high.

“The strength of hiring calls into question the rally in treasuries that took place over the last few months,” Mike Bell, a market strategist at J.P.Morgan Asset Management, said in an email. “We expect this to be the start of a sustained move higher in treasury yields over the rest of the year.”

Oil prices declined again Friday, set for their biggest weekly loss since October after falls earlier in the week triggered by rising COVID-19 cases and a surprise build in U.S. crude stockpiles. [O/R]

U.S. crude recently fell 0.56% to $68.70 per barrel and Brent was at $71.09, down 0.28% on the day.

The dollar crept higher on Friday, lifted by the positive jobs report, which bolstered the case for faster U.S. policy tightening. The dollar index was last up about 0.512, or 0.555%, in midmorning trading.

The stronger dollar and potential for higher yields hurt gold. Spot gold dropped 2.2% to $1,764.80 an ounce, and U.S. gold futures fell 2.37% to $1,762.30 an ounce. [GOL/]

Ether, the world’s second largest cryptocurrency, fell about 2% as of Friday morning, a day after a major software upgrade to its underlying ethereum blockchain, which is expected to stabilize transaction fees and reduce supply of the token.

(Reporting by Lawrence Delevingne; additional reporting by Caroline Valetkevitch, Medha Singh and Stephen Culp; editing by Jonathan Oatis)

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: Global Banking & Finance Review │ Banking │ Finance │ Technology. 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