Stocks have been grinding lower amid a gradual selling effort. The major equity averages are now at session lows.
Energy stocks have made one of the most pronounced reversals. The sector had been up in excess of 2% this morning, but now it is only up 0.2% for the session. Telecom stocks are also up 0.2%, as a group. The two sectors are presently tied for the worst performers.
Industrial stocks are now this session's frontrunners. The sector's 1.0% gain comes amid leadership from 3M (MMM 95.90, +0.98) and United Technologies (UTX 89.45, +0.92).
The euro fell against all of its most-traded counterparts after Der Spiegel magazine reported that debt-strapped Greece may stop using the currency.
The European currency reached a two-week low against the dollar after the magazine said Greece is considering reintroducing its own currency and that the European Commission called a meeting to discuss the move. A spokesman for Luxembourg’s Jean-Claude Juncker, who leads euro-region finance ministers, denied the report.
“It does bring to the forefront the existential concerns about the euro,” said Samarjit Shankar, a managing director for the foreign-exchange group in Boston at Bank of New York Mellon, the world’s largest custodial bank, with more than $20 trillion in assets under administration. “If in the next few weeks and months there is more news flow about a possible exit by one or more countries from the European monetary union, then undoubtedly it will be a negative for the currency because it strikes at the root of its existence.”
Despite denials of the Greek story (considering pulling out of the eurozone, the euro presses lower, taking out earlier lows around $1.4450/55 to post a new low near $1.4422. Medium demand at $1.4420 and minor demand at $1.4400. ahead of $1.4390/70.
Stocks have steadily extended their advance so that the three major equity averages are at fresh session highs with gains comfortably above 1%.
Natural resource plays continue to attract the most support. In turn, the materials sector is up 2.0% and the energy sector is up 2.2%. Even though natural resource plays are in such strong shape, Olympic Steel (ZEUS 27.82, +0.15) is only up moderately after it posted for the latest quarter earnings that greatly exceeded what had been expected. Peers US Steel (X 46.41, +0.29) and AK Steel (AKS 15.07, -0.02) are laggards, too.
Analysts at CS say payrolls were better than unemploy rate. "There was a big upside surprise on payrolls considering most other data (claims, ADP, ISM services) were pointing to a slowdown. Total jobs rose 244K, the third straight month of job gains well over 200K. The three month average is 233K."
EUR/USD $1.4565, $1.4750, $1.4815, $1.4865
USD/JPY Y80.60, Y80.65, Y81.00, Y81.20, Y82.00-05
EUR/JPY Y118.45, Y114.65
GBP/USD $1.6250, $1.6300, $1.6600
USD/CHF Chf0.8700
AUD/USD $1.0775
GBP/NZD NZ$2.0880
Traders continue digisting Payrolls that showed +244k Apr jobs containing +26.8k food services jobs and this possibly reflecting MacDonalds hiring. But the MacDonalds 'national hiring day' was Apr 19 and the payroll reference period contains the week of Apr 12.
Stocks were set to rally at Friday's open, after the government reported that the economy added 244,000 jobs in April, much better than expected.
The unemployment rate ticked higher to 9% from 8.8% but investors were clearly tuned into the top-line number. Economists were expecting the report to show that employers added only 185,000 jobs in the month and the unemployment rate to remain 8.8%.
Commodities: Oil, gold, and silver continued to slide Friday.
Just a week ago, silver prices were within spitting distance of breaching $50 an ounce. On Friday, silver futures for July delivery dropped $2.45, or 7%, to $33.80 an ounce.
Gold futures for June delivery fell $2.20 to $1,479.20 an ounce.
Oil for June delivery slipped $2.02, or 2%, to $97.78 a barrel, after plunging 8.6% to close below $100 a barrel Thursday.
Companies: After the closing bell Thursday, insurer giant AIG (AIG, Fortune 500) reported a loss from continuing operations of $1.41 per share for the first three months of the year, compared to a profit of $2.16 per share over the same period a year ago.
Shares of AIG were down 1.6% in premarket trade.
EUR/USD recovered to current $1.4533 after it earlier dipped to the lows on $1.4450 after a strong Payrolls report. Offers expected $1.4550.
Stronger than expected NFP damped by jump in unemployment headline sees dollar strengthen with EUR/USD fell to the lows around $1.4450, while stocks push sharply higher.
Markets remain calm today awaiting for US Non-Farm payrolls figures to asses the strength of current recovery on the world's largest economy. The median estimate is +185,000, but the range is between 175,000 and 195,000 in April, following a 216,000 increment in March and 194,00 in February.
The jobless rate may have held at 8.8%.
The jobless rate dropped a percentage point over the four months ended March to reach 8.8%, the lowest level in two years. Estimates for April range from 8.6% to 9%.
For the full year, economists expect 2.3 million new jobs and an unemployment rate of 8.4% by year end.
The Labor Department said that claims for unemployment benefits rose to 474K last week, the highest level in eight months.
ADP Employer Services data showed employment at U.S. companies increased by 179,000 jobs in April, compared with a revised 207,000 in March. The median estimate called for a 198,000 advance this month.
Data released:
07:00 UK Halifax house price index (April) 0.3% 0.1%
07:00 UK Halifax house price index (April) 3m Y/Y -2.9% -2.9%
08:30 UK PPI (Output) (April) unadjusted 0.8% 0.8% 0.9%
08:30 UK PPI (Output) (April) unadjusted Y/Y 5.3% 5.2% 5.4%
08:30 UK PPI Output ex FDT (April) adjusted 0.6% 0.3% 0.4%
08:30 UK PPI Output ex FDT (April) unadjusted Y/Y 3.4% - 3.0%
08:30 UK PPI (Input) (April) adjusted 2.6% 1.0% 3.7%
08:30 UK PPI (Input) (April) unadjusted Y/Y 17.6% 15.6% 14.6%
10:00 Germany Industrial production (March) seasonally adjusted 0.7% 0.5% 1.7 (1.6)%
10:00 Germany Industrial production (March) not seasonally adjusted, workday adjusted Y/Y 11.2% 10.6% 15.2 (14.8)%
11:00 Canada Employment (April) +58.3 -1.5
11:00 Canada Unemployment rate (April) 7.6% 7.7%
Canada’s dollar advanced against its U.S. counterpart for the first time in five days as a report showed employers added more jobs in April than economists forecast.
Employers added a net 58,300 jobs in April after a decrease of 1,500 in the previous month, Statistics Canada said. The median forecast of economists was for an increase of 20,000. The unemployment rate unexpectedly dropped to 7.6%.
The euro capped yesterday's fall on Friday after ECB policymaker Ewald Nowotny said that markets had overinterpreted the central bank's stance on interest rates the previous day.
Yesterday the euro plunged across the board on Thursday after comments from the head of the European Central Bank suggested interest rates were unlikely to rise next month. ECB President Jean-Claude Trichet failed to use the key words "strong vigilance" in his comments on inflation.
EUR/USD remained within the $1.4510/90 range most of the session. But euro resumed selling ahead of US data.
GBP/USD printed lows around $1.6350 before recovered to $1.6433. Currently rate weakens again, holding around $1.6416.
USD/JPY managed to gain to Y80.70, but it failed to hold higher. Ahead of NY opening it holds around Y80.23.
Today's focus is on Payrolls report due at 12:30 GMT.
Payrolls rose by 185,000 workers last month compared with a 216,000 advance in March, according to the median forecast of economists. The jobless rate may have held at 8.8%.
The jobless rate dropped a percentage point over the four months ended March to reach 8.8%, the lowest level in two years. Estimates for April range from 8.6% to 9%.
EUR/GBP still correcting after it reached highs on stg0.9043 yesterday. Cross currently holds around stg0.8840 with stops mentioned under stg0.8840. A break here to open a deeper move toward stg0.8810/00. Resistance now seen toward stg0.8900.
Gold hit a morning's low of $1476.80 in Europe and currently trades around $1485.50.
Silver heading lower again to a day's low of $34.00 not seen since Mar 17, on further unwinding ahead of this afternoon's payroll data. A break down through $33.57 now likely to spiral down to $31.70/75.
USD/CAD holds around session lows on C$0.9629. rate trades lower C$0.9660 ahead of Canadian jobs data prompting talk that numbers could come in on the stronger side. Rate holds heavy.
The euro jumped on Friday after ECB policymaker Ewald Nowotny said that markets had overinterpreted the central bank's stance on interest rates the previous day.
The single currency rose after Nowotny said the central bank's stance should not be interpreted as dovish.
Yesterday the euro plunged across the board on Thursday, on track for its worst day against the dollar since November, after comments from the head of the European Central Bank suggested interest rates were unlikely to rise next month.
ECB President Jean-Claude Trichet, in remarks after a policy meeting where the central bank left interest rates unchanged at 1.25%, failed to use the key words "strong vigilance" in his comments on inflation. In the past, the ECB regularly used the phrase to signal a rate hike was only a month away.
"Going into the meeting, the market was split on the issue of whether the next hike would be in June or July, but Trichet quickly made it clear that the ECB will not hike at the June meeting," said Frank Hansen, senior economist at Danske Bank.
Meanwhile, today's focus is on Payrolls report due at 12:30 GMT.
Payrolls rose by 185,000 workers last month compared with a 216,000 advance in March, according to the median forecast of economists. The jobless rate may have held at 8.8%.
The jobless rate dropped a percentage point over the four months ended March to reach 8.8%, the lowest level in two years. Estimates for April range from 8.6% to 9%.
EUR/USD holds heavy, extending lows to stg0.8855. Cross probes support between stg0.8855/45. Stops noted on a break of stg0.8840.
Mkts definitely over-interpreted ECB yesterday
Need full info especially about medium-term inflation
Can decide in June on policy w/new fcasts in hand
ECB never pre-commits
Need m-term view on commodities, euro drop
Must see commodities in context of previous rises.
German industrial output data for March is also due, at 1000GMT.
Resistance 3: Y81.70 (May 2 high)
Resistance 2:Y81.20 (May 4 high)
Resistance 1:Y80.60 (session high)
Current price: Y80.53
Support 1:Y80.25 (session low)
Support 2:Y79.55 (May 5 low)
Support 3:Y79.00 (Mar 18 low)
Comments: the pair become stronger. The nearest resistance - Y80.60. Above growth is possible to Y81.20. The nearest support - Y80.25. Below losses are possible to Y79.55.
Resistance 3: Chf0.8830 (Apr 27 high)
Resistance 2: Chf0.8750/60 (Apr 28-29 high)
Resistance 1: Chf0.8710 (session high)
Current price: Chf0.8690
Support 1: Chf0.8680 (session low)
Support 2: Chf0.8635 (38.2 % FIBO of yesterday's growth)
Support 3: Chf0.8550 (May 4-5 low)
Comments: the pair bargains in the field of the high reached yesterday. The nearest support - Chf0,8680. Below loss may extend to Chf0.8635. The nearest resistance - Chf0.8710. Above is located Chf0.8750/60.
Resistance 3: $ 1.6550 (May 5 high)
Resistance 2: $ 1.6470 (resistance line from May 2)
Resistance 1: $ 1.6430 (session high, Apr 26-27 low)
Current price: $1.6385
Support 1 : $1.6355 (session low)
Support 2 : $1.6220 (Apr 12-13 and 19 low)
Support 3 : $1.6200 (38.2 % FIBO $1.5340-$ 1.6740)
Comments: the pair bargains below a mark $1.6400. The nearest resistance - around $1.6430. Above growth is possible to $1.6470. The nearest support $1.6355. Below is possible testings of around $1.6220.
Resistance 3: $ 1.4900 (May 5 high)
Resistance 2: $ 1.4700 (50.0% FIBO of yesterday's falling)
Resistance 1: $ 1.4585 (session high)
Current price: $1.4538
Support 1 : $1.4510 (sessional low)
Support 2 : $1.4490 (Apr 26 low)
Support 3 : $1.4400 (support line from Feb 14)
Comments: the pair bargains in the field of reached yesterday low. The nearest support $1,4510. Below losses are possible to $1.4490. The nearest resistance - $1.4585. Above growth is possible to $1,4700.
07:00 UK Halifax house price index (April) 0.3% 0.1%
07:00 UK Halifax house price index (April) 3m Y/Y -2.9% -2.9%
08:30 UK PPI (Output) (April) unadjusted 0.8% 0.9%
08:30 UK PPI (Output) (April) unadjusted Y/Y 5.2% 5.4%
08:30 UK PPI (Input) (April) adjusted 1.0% 3.7%
08:30 UK PPI (Input) (April) unadjusted Y/Y 15.6% 14.6%
10:00 Germany Industrial production (March) seasonally adjusted 0.5% 1.6%
10:00 Germany Industrial production (March) not seasonally adjusted, workday adjusted Y/Y 10.6% 14.8%
11:00 Canada Employment (April) - -1.5
11:00 Canada Unemployment rate (April) - 7.7%
12:30 USA Nonfarm payrolls (April) +198K +216K
12:30 USA Unemployment rate (April) 8.8% 8.8%
12:30 USA Average hourly earnings (April) - 0.0%
12:30 USA Average workweek (April) - 34.3
19:00 USA Consumer credit (March), bln 5.0 7.6
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.