Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Uncle Sam Wants You, Back At Work

By MarketPulse (Jeffrey Halley)Market OverviewJul 03, 2020 07:45AM ET
www.investing.com/analysis/uncle-sam-wants-you-back-at-work-200529668
Uncle Sam Wants You, Back At Work
By MarketPulse (Jeffrey Halley)   |  Jul 03, 2020 07:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

US Non-Farm Payrolls sparkle

Uncle Sam wants you back at work, it seems, with US Non-Farm Payrolls adding 4.8 million jobs overnight, yet again blowing the forecasts out of the water.

Initial Jobless Claims for the week held steady at 1.4 million, and Continuing Claims for the week stayed stubbornly at around 19 million. The Non-Farms report highlighted a bounce-back in hiring in the worst affected sectors from COVID-19, such as retail.

Although the data gave cause for cheer and relief, the financial market’s reactions across asset classes were somewhat underwhelming. Stock markets closed higher, but not markedly so. The US dollar hardly moved versus the majors. US Treasury yields rose initially but soon retreated. Oil rose modestly, and gold rallied after the data.

To some extent, the good news had been expected and had been partially priced in ahead of the data. The data itself, though, was collated before the massive increase in COVID-19 cases across the US Sunbelt States. That has undoubtedly tempered the exuberance in a shortened session overnight.

Although the US holiday today will thin trading volumes around the world, the day is not without intrigue. Australia and China have both posted impressive data this morning, confirming that the recovery in these two key economies remains on track. China’s Caixin Services PMI easily exceeded forecasts, climbing to 58.4.

Australia, meanwhile, posted a record climb in May Retail Sales of 16.90%, albeit of a low COVID-19 base. Both data points, though, emphasise that life is returning rapidly to their respective domestic economies. That should ensure that equities in Asia, continue their rally from yesterday and end the week on a positive note.

Singapore will post Retail Sales for May at 13:30. Another tepid number is expected after April’s 31.70% monthly fall. Offsetting that is the fact that Singapore was in the midst of its circuit breaker lockdown at that stage. The data will be too far backwards looking to impact Singapore markets, with the Island State’s domestic demand already recessionary, even before the pandemic struck.

Hong Kong Bill creating tension

Geopolitics remains a sticking point in the v-shaped recovery hopes of financial markets. Press reported that Hong Kong arrested 400 people under their freshly minted security law yesterday. The US Congress sent a bill to the President for signing, sanctioning Chinese officials associated with repression in Hong Kong and other parts of China.

Australia and Great Britain stuck to their guns over the legality of the new Hong Kong law and made noises about accepting millions of new citizens from the SAR. China did what it always does in this situation, got upset and threatened all the above with reprisals.

Doubts over whether China’s signature on a document is worth the paper it was printed on aside; I suspect that the intractable differences all both sides are weighing on markets. Ahead of the weekend and a US holiday, that is tempering the v-shaped recovery optimism.

From an Australian perspective, PM Morrison’s offer yesterday to provide a haven to Hong Kong citizens continues to confuse. Selling this to the electorate would be like selling ice blocks to Eskimos. Nor does the Australian PM have a distinguished record regarding immigrants, even from developing countries like New Zealand. Hong Kongers would be well advised to read the small print carefully. Christmas Island is nowhere near Sydney.

Original Post

Uncle Sam Wants You, Back At Work
 

Related Articles

Michael Kramer
Are U.S. Stocks Grossly Overvalued? By Michael Kramer - Sep 17, 2021 37

This article was written exclusively for Investing.com.Stocks have had a fantastic run over the past 18 months. It seems that many investors owe much of the credit to low-interest...

JFD Team
U.S. And U.K. Retail Sales, EU CPI In Focus By JFD Team - Sep 17, 2021

Yesterday, the US released a few important economic data sets, which overall showed decent results. During the early hours of the European morning, the United Kingdom released its...

Uncle Sam Wants You, Back At Work

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Adamo Nals
Adamo Nals Jul 03, 2020 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That was the last good if you can call it that jobs report you’re going to see. That only went till June 11 those numbers. The exact time retail was hiring back some workers. We are still down 20 million unemployed. Again we’re gonna walk in on Monday and this upcoming week will be a massive correction in my opinion. It’s the black swan of all black swans coming. And it’s healthy for a market to correct for all you millennials. It’s not normal for the market to go straight up week after week month after Month day after day. That just makes the correction even deeper
Matthew Jakub
Matthew Jakub Jul 03, 2020 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like non-millenials are brilliant investors
Matthew Mover
Matthew Mover Jul 03, 2020 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wrong you must watch CNN. If you haven’t learned by the CDC is helping the democrats and FAKENEWS when they changed how COVID cases to count to now allow probable cases without LABORATORY CONFIRMATION to found as confirmed cases. Read this from the CDC, {A COVID-19 case INCLUDES CONFIRMED and PROBABLY cases and deaths} {A probable case or death is defined as: A person meeting clinical criteria AND epidemiologic evidence with NO CONFIRMING LABORATORY TESTING PERFORMED FOR COVID-19; A person meeting presumptive laboratory evidence AND either clinical criteria OR epidemiologic evidence; A person meeting vital records criteria WITH NO CONFIRMATORY LABORATORY TESTING PERFORMED FOR COVID-19.} HERE IS THE CDC LINK https://www.cdc.gov/coronavirus/2019-ncov/covid-data/faq-surveillance.html
Matthew Mover
Matthew Mover Jul 03, 2020 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ask yourself this, Are you going to never have coitus again because your afraid of getting STD’s or HIV? Will you stay inside forever because your affraid of catching the flu, pneumonia, measles, mumps, E. Coli ect...? Will you never eat out again when there is a risk of catching hepatitis A? Will you stop driving because of the risk of getting into a car accident? Would you stop going outside because of the risk of skin cancer from the sun, or stop eating processed food because of the risk of cancer? Will you stay home forever because of a risk of getting shot? The world is a dangerous place and this has always has been the case and this ABNORMAL PANIC that’s being induced to cause extreme FEAR in ways that prevent you from living normally is all FAKENEWS; Never forget that you have gone your whole life without this fear and will continue to do so for the rest of your life. Or you can go become a real life BUBBLE MAN.
Ave Joe
Ave Joe Jul 03, 2020 11:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
well said  you should be on staff for investing...Do not forget that All Lives Matter
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email