Friday morning, the S&P 500 Index e-mini futures (ES-Z2) are trading higher by 7.50 points to $1420.50 per contract. A few minutes ago, the U.S. Labor Department released its monthly non-farm payroll report. The report said that the U.S. economy added 146,000 jobs in November. Economists were expecting a gain of just 85,000 new jobs. The unemployment rate also declined to 7.7 percent which is the lowest since December 2008. Since the job report was released the major stock indexes have erased there earlier losses.
European markets have also rallied off of their lows on the back of the U.S. job report. I'm not so sure traders should get so bullish from this report. Any stronger U.S. economic data should cause the U.S. Dollar Index to trade higher and that will usually deflate stock markets in Europe and the United States.
Earlier, the economic data out of Germany was weak. Germany might be the only solvent country in the European Union so traders should be cautious. Many of the European bank stocks such as Deutsche Bank AG (DB), UBS AG (UBS), Credit Suisse Group AG (ADR) (CS), and the National Bank of Greece (ADR) (NBG) could all be volatile today.
Below you may find the video.