US Markets End the Month Back to Pre-2016 Levels
Toronto, Canada, April 4, 2016 (Newswire.com) - Libor Capital
US Markets end the Month Back to pre-2016 Levels
As Asian and European markets tumbled on Friday, US markets reacted well to Jobs and Employment data with the S&P now back to the levels seen before the first 5 weeks of the year.
Terry, Neale
As Asian and European markets tumbled on Friday, US markets reacted well to Jobs and Employment data with the S&P now back to the levels seen before the first 5 weeks of the year.
Jobs data was in line with expectations if not slightly higher. 215,000 non-farm payroll jobs were added in March, down on the 242k added in February but still keeping the longest run of over 200k jobs being added each month. Surprisingly, unemployment went up from its 8-year low of 4.9% to 5%.
The positive news did little to help oil and it continued to fall during Friday trading. US Crude ended the day at $36.79, down 7% on the week and Brent didn’t perform much better falling 3% to $39.09.
With Oil seemingly destined to stay below $40, Saudi Arabia suggested a reduction in production should Iran and other large producers reduce their levels too. With sanctions only having just been lifted in Iran it was no surprise that they politely declined the proposal and suggested that they would look to increase levels back to pre-sanction time which is estimated at an additional 1mn barrels per week bringing inventories to the 4mn barrels per week level.
With the Fed Reserve continuing their dovish sentiments there is still uncertainty as to whether we will see a rate hike this year. A Reuters Poll suggested that experts still expect 2 rate hikes this year with the first coming in June. Contrasting opinions are held at the CME Fedwatch, a poll with their members suggests that 47% expect a rate rise in November and 57% looking to December.
US Market Close 1st April 2016
S&P 500 - 2,072.75 - (+0.63%)
Dow Jones – 17,792.75 – (+0.61%)
NASDAQ – 4,914.54 – (+0.92%)
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