Equities: Stocks had an excellent day today as non farm payrolls and unemployment rate both came in better than expected. Without the weather effects, the pundits analysis was that jobs would have been gained in February. The fact that the unemployment rate held constant at 9.7% is good news for the labor market, we could easily see further falls in the future. Market mood is still bullish, lets see how long this lasts.
Currencies: The Dollar fell against both the Pound and the Euro on the good economic news. The Yen also fell against the Dollar as risk aversion seems to have completely left the market. I made a comment yesterday on whether good news coming out of the US could be Dollar positive, and it appears the market is still deciding which way to go on this. I believe in the long run, it should be Dollar positive as growth and economies of the US and Europe begin to diverge further.
Commodities: Oil continues to track the gains in equity markets, rising another buck and change on the non farm payrolls data. Think my put on oil is likely to expire out of the money, looking back I'm not sure it was a good trade for the following reason: the only available oil option was a month long which wasn't long enough for fundamentals to fully play out. Gold was relatively unchanged on the day. Gold seems to rise on bad news and stay flat on good news, implying a bullish market mood.
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