In a market wrap, analysts at ANZ Bank New Zealand Limited (“ANZ”) explained that a sea of red remained across markets as the Fed continues to tout a strong economy and normalisation of rates.
Key Quotes:
“US equities finished down 0.6-1.2% and the VIX topped 17 at one point (now 14.8). Major European bourses dropped 0.7% to 1.4%.”
“US treasuries experienced some volatility after the mixed labour market report, but soon began weakening, with yields up around 2bps at the front end and up over 5bps at the long end, with the 30-year finishing over 3.40%.”
“The USD appreciated against all in the G10 except GBP. The EU is rumoured to be offering the UK a free trade deal deeper than any agreement that’s been done before. Oil was relatively stable and gold rose back above $1200/oz.”
DATA/EVENT PULSE
“DECENT DETAILS: Although headline US non-farm payrolls undershot expectations, upward revisions to the previous two months left the figures around expectations in aggregate. Average hourly earnings were as expected at 2.8% y/y. So despite the booming economy, wages are still struggling to accelerate. The participation rate (62.7%) and weekly hours worked (34.5) were unchanged. The unemployment rate fell to 3.7%. Elsewhere, the US trade deficit widened to $53.2bn in August. The year to date trade deficit with China is at $261bn, compared with $239bn the previous year.”
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