Market Brief: Solid NFP Erases Indices’ Early-Week Losses

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

*Please note that the Pre-Asia Market Brief report will be on hiatus next week, returning Monday December, 16.*

  • OPEC formalized a 500k bpd production cut, with additional voluntary cuts from Saudi Arabia.
  • US data: Non-Farm Payrolls (Nov) printed at 266k, well above expectations of a 180k rise. Previous reports were also revised up by 41k. Average Hourly Earnings rose just 0.2% m/m (3.1% y/y), keeping a lid on the ensuing US dollar strength. Separately, the UofM Consumer Sentiment report improved to 99.2, above estimates of a 97.0 reading.
  • FX: The New Zealand dollar was the strongest major currency on the day, while the Canadian dollar brought up the rear. An abysmal Canadian jobs report (-71.2k jobs, unemployment up 4 ticks to 5.9%) was the main culprit.
  • Commodities: Oil gained over 1% on confirmation of the OPEC production cuts; gold slipped more than -1% on the back of the solid NFP report.
  • US indices closed sharply higher to erase the losses from earlier in the week and close near record highs once again.
  • Energy (XLE) and Financials (XLF) were the strongest sectors on the day. Utilities brought up the rear, closing lower on the day.
  • Stocks on the move:
    • Financial stocks, including Bank of America (BAC, +1%), Citigroup (C, +1%), and J.P. Morgan (JPM, +2%), rallied across the board on rising bond yields.
    • Oil stocks also rose, helped along the OPEC production cut. Both Chevron (CVX) and Exxon Mobile (XOM) rose 1-2%.
    • Manufacturing firm 3M (MMM) gained 4% after report that it was exploring selling off its drug delivery business.
    • Uber Technologies (UBER) shed -3% on news that it received 16% more sexual assault reports this year than last. The company has long struggled with concerns about its culture.

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.