Market News & Analysis

Market Brief: Solid NFP Report Pumps Up Risk Appetite

View our guide on how to interpret the FX Dashboard.

  • The October Non-Farm Payrolls report printed at 128k, above economists’ expectations (especially accounting for the nearly +100k positive revision to previous readings). While wage data came in a tick soft, last month’s earnings figures were revised up by +0.4% m/m, suggesting that the US labor market remains generally strong. Separately, the ISM Manufacturing PMI report missed expectations and remained in contractionary territory for the third straight month.
  • FX: In a typical risk-on configuration, the growth-sensitive New Zealand dollar was the strongest major currency, with the safe haven Japanese yen bringing up the rear.
  • Commodities: Oil surged nearly 4% today to extend its recent streak of volatility; gold was essentially flat.
  • See the key data and market themes we’ll be watching in the coming week!
  • US indices closed roughly 1% higher across the board to hit new record highs, reassured by the solid NFP report and continued optimism about a potential US-China “Phase One” trade deal.
  • Energy (XLE) was the strongest sector, boosted by the big rally in oil prices. REITs (XLRE) were the weakest.
  • Stocks on the move:
    • Alibaba (BABA, -0%) reported strong adjusted earnings of RMB 13.10 per share, up more than 30% from last year. Despite beating both earnings and revenue estimates, the stock finished the day essentially flat.
    • Exxon Mobil (XOM) tacked on 3% despite a 50% drop in earnings as the company reported better-than-expected revenue amidst falling oil prices. Rival Chevron (CVX, -0%) was essentially unchanged on the day after missing analysts’ EPS and revenue estimates.
    • Pinterest (PINS) shed -17% today after yesterday’s disappointing revenue figures.
    • US Steel (X) reported a loss this quarter, but beat revenue expectations, leading the stock to rise 15% on the day.
    • Warren Buffett’s Berkshire Hathaway (BRK.B, +2%) reports earnings over the weekend.

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.