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It seems that global markets today are hinged on the US Jobs report.
This week, we have seen mixed data out of the US, but overall the news has been positive.
Yesterday, Fed Reserve Chairman Bernanke, addessed congress and although his remarks showed concern, he admitted that the US economy was slowly recovering. Promising that the Fed’s were watching closely and would do whatever it takes to keep the recovery moving along.
Overall, manufactuing and durable goods reports have been positive, and the US backbone is our manufacturing sector, so as long as factories are starting to improve, so will the overall economy eventually.
The largest lag has been in the creation of new jobs, which effects consumers, confidence, taxes, and growth.
This week we have had mixed signals.
The Challenger Jobs report figures showed job losses in January totaled 53,486 in January, the highest total since last September and nearly 39% higher than job cuts of 38,519 in January 2011. Compared with December 2011 job cuts of 41,785, the January losses are 28% higher.
Government job losses totaled just 3,021, but the monthly average for 2011 was 15,255 job cuts. In the past 24 months, 325,319 jobs have been lost in the public sector
the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 28 fell by 12,000 to a seasonally adjusted 367,000, beating expectations for a decline to 373,000. The previous week’s figure was revised up to 379,000 from 377,000.
Jobless claims have remained below 400,000, a level historically associated with an improving labor market, in 12 of the past 14 weeks.
The global markets are holding their breath, in hopes of good numbers today from the US all important job reports.
The hope is that if America begins the recovery it can be the locomotive to pull up Europe and provide the far east increase demand for exports.
Shorlty the US will be releasing the reports. In the hopes that reports meet forecast or exceepd.
The Labor Department will release four all important reports.
- Average Hourly Earnings measures the change in the price businesses pay for labor, not including the agricultural sector.
- Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.
- The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
- Private Nonfarm Payrolls measures the change in the number of total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals and farm employees.
There will be immediate market reaction and currency movements. If the reports are positive the greenback should soar, along with EU and US markets. Crude oil should move up and Gold will possibily fall.
Everyone is sitting with baited breath at this moment... Counting down the minutes.