The week to February 2nd was marked by the strong US jobs data released last Friday. Global equity markets ended lower last week, amid expectations that higher US inflation will prompt Federal Reserve (Fed) to raise interest rates at a quicker than anticipated pace. Dow Jones lost more than 660 points on Friday, the biggest plunge since June 2016, while the S&P 500 lost 3.9% in week, the most since early 2016.
The Euro-zone’s gross domestic product (GDP) for the Q4 and the consumer price index (CPI) for January were in line with market estimates. The final manufacturing PMI dropped slightly in January from December. The EUR ended higher against the USD, amid growing investors’ optimism over the Eurozone’s economy and after the region’s unemployment rate came in as expected in December.
US markets ended the week in negative territory, as investors’ sentiment was dampened amid concerns over surging inflation and bond yields. The USD ended higher against most its peers, following upbeat jobs report for January. The policy statement of the US Federal Reserve (Fed) stated that inflation would advance this year and pointed towards gradual interest rate hikes in future. In economic news, private payrolls in the US grew more than expected in January and the nation’s manufacturing sector surprisingly expanded in January. The unemployment rate in the US remained unchanged in January and non-farm payrolls advanced more than market expectation in January.
Strong US Jobs Data and Central Banks
Weekly Report - 05/02/2018