US Jobs Data Surprises with Strong Numbers
The week ended on a positive note for the US job market, exceeding expectations with robust figures. Non-farm payroll experienced a substantial rise of 353,000, surpassing the estimated 180,000 and the previous week’s ADP rise of 107,000. This surge in employment contributed to a decline in the unemployment rate, which came in at 3.7%, lower than the expected 3.8%.
Furthermore, average yearly earnings saw remarkable growth, rising by 0.6% on a month-on-month basis, exceeding the anticipated 0.3% increase. On a year-on-year basis, average yearly earnings increased by 4.5%, surpassing the expected 4.1% rise.
Although the average workweek in hours experienced a slight decrease to 34.1 hours from 34.3 hours last month, this decline was in line with estimates.
The job gains were particularly notable in the private education and health services, professional and business services, and manufacturing sectors.
The positive job data had a significant impact on the financial markets. US bond yields climbed higher, with significant increases across various maturities. In addition, the US Dollar strengthened against major currencies, emerging as the strongest currency of the week.
Contrary to expectations, US stocks rose, propelled by the positive jobs data and strong corporate earnings. The strong economy and geopolitical tensions, however, did not prevent a decline in crude oil prices.
On the commodities front, gold prices responded to higher rates and the stronger US Dollar, resulting in a sharp decline.
Moving forward, market participants are eagerly anticipating various economic events and earnings announcements. These include an interview with Fed Chair Powell and the RBA rate decision. Additionally, attention will be focused on the release of China CPI and Canada employment statistics later in the week.
Overall, the unexpectedly strong US jobs data and its impact on the financial markets have generated optimism among investors and analysts. The robust figures, along with upcoming economic events, are expected to continue shaping market dynamics in the coming week.