LIVE MARKETS-U.S. Non farm payroll: Careful what you wish for...
Fri, 7th Dec 2018 06:56
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U.S. NON FARM PAYROLL: CAREFUL WHAT YOU WISH FOR...(0656 GMT)
Today's U.S. job data will be key for market sentiment but it's not crystal clear what would be the most reassuring figure.
"Usually we look at these releases and want to see the best possible numbers â€“ for obvious reasons â€“ but given the fragility in the markets, I wonder whether the goldilocks report for the current environment involves decent â€“ but not great â€“ jobs growth and only moderate wage gains", writes Craig Erlam from Oanda.
"This would give the Fed and investors encouragement that the economy is ticking along nicely and allow it to take the foot off the gas a little, potentially taking some pressure of the middle part of the yield curve and easing investor concerns".
With more and more investors taking the view that the Fed has become more dovish, stellar job creations or wages growth could change again the expectations for rate hikes and lead to more volatility.
On the other hand, fears that the U.S. yield curve is pointing to a stronger than expected slowdown have also to be addressed somehow.
MORNING CALL: SET FOR A TENTATIVE REBOUND (0628 GMT)
The money still seems to be on European stock markets rebounding at the open after their rout yesterday. IG expects London's FTSE to open 98 points higher, Frankfurt's DAX to rise 103 points and Paris' CAC 55 points.
CMC Markets is giving similar levels for the open but there sure isn't that much enthusiasm on Asian markets at the moment despite Wall Street recouping most of its losses towards the end of the session.
Support can't be expected from oil prices which are still dragged by OPEC's decision to delay a final decision on output cuts.
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