(CercleFinance.com) – The New York Stock Exchange should open lower on Friday morning following the publication of employment figures giving the Fed additional arguments to continue raising its rates.
Half an hour before the opening, futures contracts on the major New York indices fell 1.4% to 2%, heralding a dark red start to the session.
Job creations increased much more than expected in November in the United States, with 263,000 new jobs where economists expected them to be around 200,000.
This higher-than-expected figure shows that the monetary tightening carried out by the Federal Reserve for several months is struggling for the moment to ease the severe tensions in the labor market.
‘This means that the job market is struggling to relax and that it remains much more robust than the Fed wants,’ comment economists at Commerzbank.
These solid statistics therefore seem likely to reinforce the US central bank’s desire to calm inflation by curbing growth by raising its interest rates.
Traders have also reduced their bets on a limited hike of 50 basis points in Fed rates this month, now estimated around 72% against more than 77% yesterday.
The president of the American central bank, Jerome Powell, reminded this week that the cost of money would be raised beyond the levels anticipated by the market and that the Fed would not lower its guard before inflation was brought under control.
But investors had preferred to retain statements from his intervention that suited them more, starting with the prospect of a possible slowdown in the pace of rate hikes ‘from the month of December’.
After the jobs report, US Treasuries yields are on the rise again, with the 10-year paper returning above 2.60%, while the dollar is recovering against the euro after its drop in the last few days, at around 1.0465.
Copyright (c) 2022 CercleFinance.com. All rights reserved.