This afternoon has seen three major economic events that have failed to stir the markets out of their doldrums, with the focus now shifting to tomorrow’s non-farm payroll report. The ECB rate decision was the first potentially major event of the day, but with rates left unchanged and comments from Draghi in the press conference offering little new to go on their was no major reaction.
The latest US employment data was solid if not spectacular with ADP showing a mild improvement on last month’s data and initial jobless claims declining. When the upward revision to last month’s ADP data is also taken into the picture becomes more favourable, but it now seems that hopes are pinned on tomorrow’s NFP to drive the market going forward.
Oil is normally a good place to look for some volatility and movement and whilst Brent ( 0.85%) is only up a fairly small way on the day, there has been some nice two way trade. Firstly the market sold off following news that the latest attempt by OPEC to agree on a production ceiling failed, before a drop in crude oil inventories of 1.37M barrels saw the market rally into the European close.
Stock markets around the globe a pretty much flat with the FTSE ( 0.01%) and US500 (-0.05%) little changed on the day. In the currency space the Japanese Yen is one of the bigger movers with the USDJPY (-0.64%) moving back below 109 to trade 108.75 at the time of writing.
Looking forward UK services PMI is out tomorrow morning at 09:30 before the main event of the week at 13:30 with the NFP release. Shortly after we have more US data with the ISM non-manufacturing PMI at 15:00 rounding off the week.
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