- The USD pared losses Friday, though still ended lower for a sixth straight week, while Treasuries erased gains. Earlier moves sparked by weak earnings component of jobs report were reversed after Fed’s Williams said there’s an argument for a March rate increase.
- Friday saw January’s 227k increase in US payrolls, following a 157k rise in December. The jobless rate rose to 4.8%, and average hourly earnings grew 2.5% from January 2016, the weakest since August. Compared with December, worker pay increased 0.1%. Overall wage gains were down 1% in financial industries.
- Wall Street hope revived as Trump plans to roll back rules.Bank shares soared Friday on optimism that Trump will roll back Dodd-Frank just as Wall Street was wondering whether the new president would really be good for business
- Fed’s Williams sees some arguments to raise rates in March. SF Fed President reiterated that three hikes this year would be a “reasonable guess,” while Chicago Fed President Evans said he could be “comfortable” with three hikes
- U.S. court denies request to immediately restart travel ban. U.S. Court of Appeals for the 9th Circuit denied the Department of Justice’s motion to immediately reinstate the travel ban, according to court document
MARKETS IN DETAIL
- The AUD continues to recover slowly against the USD, it topped out at 0.7695 and are trading at 0.7674 now.
- The Bloomberg Dollar Spot Index was down 0.1% on Friday in New York. This measure has fallen six straight weeks, the longest slump since August 2010
- USD gained before the U.S. jobs report, while yen fell on BOJ effort to control the yield curb. USD/JPY gyrated, closing at 112.53 after falling to 112.32 and then going back above 113.00
- The pound weakened 0.4 percent to $1.2477, while the euro slipped by 0.2 percent
- Treasuries rose following payrolls report before turning weaker in the afternoon as Fed’s Williams commented on outlook for March hike, with support potentially from early auction set-ups
- The bunds due in a decade added one basis point to 0.43 percent, while similar-maturity debt yields of France, Spain and Italy rose at least three basis points.
- The S&P 500 rose 0.7%; banks posted their best day since mid-November on optimism about looser regulations
- The Nasdaq Composite Index rose to an all-time high, advancing 0.5 percent.
- Stoxx Europe 600 Index rose 0.6% in broad-based rally after the NFP portion of jobs report beat estimates
- Exports of iron ore from Australia’s Port Hedland reached a new record, while China’s imports were still growing in December and stocks of iron ore at China’s ports rose again in January
- Benchmark copper on the LME was down 1.9% to USD5772 a tonne, the weakest since Jan 23