The US labor market is recovering

The US labor market is recovering

The number of weekly jobless claims published yesterday – 290K - showed a favorable evolution of the labor market, with the lowest number since the pandemic's beginning

Everything indicates that the economy is moving towards full employment, which is the objective that the Federal Reserve set when making expansionary monetary policy decisions.

The fixed income market behaved accordingly with further falls in the prices of treasury bonds that brought the US 10-year bond yield to 1.68%, already very close to the maximum levels reached in March of this year - 1.77%. The latest figures show long-term interest rates are not having any negative impact on the stock markets at the moment. They are being driven upwards by the better-than-expected results that are being published for Q3.

However, IBM was an exception. It disappointed with a drop in revenue to 17.62B from the forecast 17.78B. The North American company reported that it was being affected by supply problems and yesterday it fell by about 9%.

This movement dragged down the DowJones30 index with slight falls that separated it from the better performance of the Nasdaq index and the S&P500.

GráficoDescripción generada automáticamente

Even so, DowJones30 is still at levels very close to its all-time high reached the previous day at 35,538.

Everything is aligned so that the Fed can announce the beginning of the tapering program as soon as the meeting of November 3: good prospects in the labor market and stocks at the highest levels.

There was an almost general decline in prices in the commodities market with falls in Natural Gas, copper lost nearly 4%, and oil dropped almost $2 on the day.

This decline in commodity prices dragged the Australian, New Zealand, and Canadian dollars down due to correlation.

In reality, there was no fundamental reason to explain this abrupt correction in raw materials, which can be interpreted as purely technical.

Only in the case of crude oil can it be said that President Putin's comments had influenced it. From his point of view, the OPEC+ member countries were not strictly complying with the latest agreements and that they could be producing more than what was agreed. Something that, in any case, would not be the first time that happens.

Technically, on the daily chart, it has formed a bearish engulfing candle that, together with an overbought RSI and slight bearish divergence, suggests that the correction may continue in the coming days.

Interfaz de usuario gráfica, GráficoDescripción generada automáticamente

Sources: Bloomberg.com, reuters.com

Die hier präsentierten Informationen wurden von Miguel A. Rodriguez erstellt und sind nicht als Investitionsberatung gedacht. Die hierin enthaltenen Informationen werden als allgemeine Marketingmitteilung nur zu Informationszwecken bereitgestellt. Als solche wurden sie nicht in Verbindung mit gesetzlichen Bestimmungen zur Förderung der Unabhängigkeit des Investment Research erstellt. Sie unterliegen nicht dem Verbot, vor der Verbreitung eines Investment Research gehandelt zu werden.

Die Benutzer / Die Leser sollten sich nicht nur auf die hier präsentierten Informationen verlassen und sollten ihre eigene Forschung / Analyse durchführen, indem sie auch die eigentliche zugrunde liegende Forschung lesen.

Key Way Investments Ltd hat keinen Einfluss auf die Formulierung der hierhin enthaltenen Informationen.Der Inhalt ist dabei generisch und wird nicht die individuelle persönliche Umstände,Anlageerfahrungen oder die aktuelle finanzielle Situationen berücksichtigten.

Daher übernimmt Key Way Investments Ltd keine Haftung für Verluste von Händlern aufgrund der Verwendung und des Inhalts der hierin enthaltenen Informationen. Die in der Vergangenheit gezeigte Performance und gemachten Prognosen sind kein zuverlässiger Indikator für künftige Ergebnisse.