Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
WHAT WE’RE WATCHING TODAY
Dollar Rallies On U.S. Jobs Growth
Job growth exceeded expectations following yesterday’s data as the unemployment rate fell to the lowest level for six years, creating a foundation for a stronger U.S. economic expansion. Payrolls rose by 288,000 workers following a 224,000 gain the prior month. The 1.39 million increase in employment over the past six months is the biggest over a similar period since early 2006.
Consequently, the dollar strengthened the most in a month, boosting speculation the Federal Reserve may bring forward interest-rate increases. The U.S. currency rose to a two-week high versus the yen while Australia’s dollar tumbled as the Reserve Bank governor said it was “overvalued.” The euro fell after European Central Bank President Mario Draghi reiterated that he’ll keep rates low. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.2 percent to 1,007.05. It gained as much as 0.4 percent, the biggest intraday jump since June 2.The greenback strengthened 0.4 percent to 102.19 yen and touched 102.27, the strongest since June 18. Europe’s 18-nation shared currency declined 0.4 percent to $1.3610 and was little changed at 139.09 yen.
Dow Finishes Above 17,000 On Strong Payrolls Report
U.S. stocks rose on Thursday, lifting the Dow industrials above 17,000, after data showing the economy created a higher than forecast 288,000 jobs in June and the unemployment rate fell. After closing at records on Wednesday, both the Dow and S&P 500 continued their advance into uncharted terrain. After a 98-point jump, the Dow Jones Industrial Average ended up 92.02 points, or 0.5 percent, to 17,068.26. The S&P 500 added 10.82 points, or 0.6 percent, to 1,985.44, with industrials leading sector gains among its 10 major industry groups. Ending at a 14-year high, the Nasdaq advanced 28.19 points, or 0.6 percent, to 4,485.93.The Chicago Board Options Exchange Volatility Index, a measure of investor uncertainty, fell 4.6 percent to 10.32. For every three stocks falling, more than four gained on the New York Stock Exchange, where nearly 537 million shares. Composite volume approached 2 billion.
Euro Zone Retail Sales Stall As Households Feel The Pinch
Retail sales across the 18 countries sharing the euro were flat in May, missing expectations as consumers continue to curb their spending amid high unemployment. Eurostat released the data as members of the ECB’s governing council gathered in Frankfurt where no new stimulus measures are expected after the bank cut interest rates to record lows last month. According to Eurostat, the month-on-month volume of sales was stable in May compared to a 0.2 percent decrease in retail sales in April. Flat retail sales in May, coupled with a modest dip in euro zone consumer confidence in June from May’s 79-month high, reinforces suspicion that any improvement in euro zone consumer spending is more likely to be gradual than pronounced over the coming months. Euro zone unemployment was stable at 11.6 percent for the second consecutive month in May, down slightly from the 12 percent seen a year ago.
That sums up today’s highlights! Have a great weekend and stay in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading news.
We hope you have a profitable day on the markets.
