- August US non-farm payrolls +22K vs +75K expected
- Canada August employment change -65.5K vs +10.0K expected
- Fed’s Goolsbee: We’re open to criticism on improving Fed decision making
- Timiraos: Soft jobs report will make it easier for Fed to agree on 25 bps cut
- Saudi Arabia wants OPEC+ to speed up next oil production boost
- US Lutnick: US economic data will get better and better after staff changes
Markets:
- Gold up $41 to $3586 — fresh record high
- WTI crude oil down $1.49 to $61.99
- US 10-year yields down 10.2 bps to 4.07%
- S&P 500 down 20 points to 6481
- CHF leads, CAD lags
It was a tough day on the North American jobs front as both the US and (especially) Canada disappointed, solidifying the case for rate cuts later this month. Both currencies sank significantly on the data but not severely with the loonie slightly underperforming the dollar on the day.
The Market is now pricing in 47 bps in Canadian easing in the year ahead and 131 bps in the US. Most notably, Fed pricing suggests a 90% chance of a cut at each of the three remaining meetings this year and a slight chance of 50 bps this month.
Naturally, gold loved the dovish shift and continued higher to a fresh record.
The price action in equities was less straight-forward as the market initially cheered the possibility of more rate cuts only to turn lower on fears of a recession. Some late equity bids (once again) cushioned the blow and the main US indexes finished higher on the week.
This article was written by Adam Button at investinglive.com.
