Markets React To Disappointing Jobs Report
The US 10-year treasury note rose today after the jobs report
was released, which showed a smaller increase in jobs than what had been
previously expected. Bonds fell the most in three weeks on Wednesday after
ADP released a private report, speculating that the jobs number would come out
much higher than expected. Despite a reprieve from rate-hike fears,
trading was mixed on news that wages increased at a rate not seen in five years.
The jobs report also made waves in the currencies, as the US
Dollar dropped to a four-week low against the Yen. Yesterday the Bank of
Japan hinted at rate hikes to come this summer, suggesting a growing economy,
while the US is struggling to deal with slowing growth. Investors felt
comfortable with today’s slide, given Wednesday’s surge was fueled by a
stretched prediction from ADP.
Crude oil futures fell over 1% to close at 73.88 on reports
that Iran is involved in constructive talks with the EU over the country’s
nuclear program. Oil reached all time highs today during intraday trading,
but investors believe that a positive resolution to the Iran situation would
lead to a gradual decline in crude prices.
Heating oil fell 2.5% and natural gas fell 2.9%.
The metals fell across the board, with copper leading the way,
down 2% for the day.
The softs fell across the board, with cotton leading the way,
down almost 4%. Cocoa stood against the slide, closing up just over 1%.
Grains traded mostly lower today, with corn down 1.7% and
wheat down 2.2%.
Job Growth Comes In Below Expectations In June (full
story).
John Patrick Lee