Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: US Non-Farm Employment Change (NFP) @ 12.30 GMT
WHAT WE’RE WATCHING TODAY
Investors Await U.S. Payroll Data
The U.S. non-farm payrolls data is due later today and is widely expected to show the biggest gain in hiring since last November of more than 200,000 new jobs. Analysts are looking to see if the increase in hiring is broad-based and whether wages are continuing to rise. The pace of hiring has been up and down since last fall and presently, job creation appears to be shifting higher. A recent poll reveals a net increase of 215,000 in April, which would mark the biggest bump since a 274,000 gain in November. What may not be clear straight away is how much of the increase is the result of warmer weather. A harsh winter disrupted many industries such as construction and manufacturing and some companies either cut back production or put off new hires. So far this year the economy has added an average of 178,000 jobs a month, below the 2013 level of 194,000. The bullish case would be aided by a broad increase in hiring across a range of industries. More limited gains will be regarded as a negative sign.
Revised employment figures for March and February are regarded just as important as new job creation. Throughout most of the recovery, the government’s preliminary estimates of new jobs have proven too conservative. In most months the number of jobs added to the economy has been revised sharply higher, based on more complete data. From September through February, for example, the employment numbers have been revised upward by an average of 26,000 a month. If this trend continues, job creation early in 2014 will look a lot better than it initially did. A steady pickup in hiring over the past three years has dragged the unemployment rate down to 6.7% from 9%. And economists predict the unemployment rate will drop another notch to 6.6% in April, matching a post-recession low. However, some 3.7 million people are still counted as long-term unemployed. Until the ranks of the long-term unemployed are vastly reduced, companies are unlikely to boost wages and the economy will continue to struggle to achieve its historical growth rate of 3.3% a year. Growth has averaged about 2% annually since the U.S. exited the last recession.
U.S. NFP today @ 12.30 GMT
Gold In Holding Pattern Ahead Of Jobs Report; Stocks Mixed
Gold prices inched higher Friday, as investors hesitated to commit to either direction ahead of the highly anticipated U.S. jobs report later in the day. Gold for June delivery was up at $1,283.50 an ounce. A day earlier, gold broke below levels not seen since early last week, as a rise in consumer spending and income threw a wet blanket on demand ahead of the jobs number. While the employment data is arguably the most important economic news of the month, troubles globally will continue to shape gold trading. With the Ukraine situation likely to get worse before it gets any better, gold and other safe-haven assets will likely at least see selling interest limited due to some extent.
U.S. stocks fluctuated on Thursday, a day after the Dow Jones Industrial Average rose to a record finish as investors took a cautious approach before the April nonfarm payrolls report. European shares, meanwhile are set for mixed open in advance of the US jobs data. The U.K.’s FTSE index is expected to open level at 6808, with Germany’s DAX seen 19 points higher at 9624 and France’s CAC called 7 points lower at 4480.
Pfizer Raises Offer For Astrazeneca To GBP 50 Per Share
U.S. drugmaker Pfizer said on Friday it had raised its offer for AstraZeneca to GBP 50 ($84.47) a share, adding that the British drugmaker was reviewing the proposal. AstraZeneca earlier rebuffed a proposal valuing it at just under $100 billion, or GBP 46.61 per share. Buying AstraZeneca would give Pfizer a lower tax rate and a portfolio of experimental cancer drugs. Stockholders would get 15.98 pounds in cash and 1.845 shares of the combined company for each share in AstraZeneca. The new bid is 39 percent above the closing price Jan. 3, before AstraZeneca made its initial offer. AstraZeneca rose 3.2 percent to close at 48.15 pounds a share in London, giving it a market value of 60.8 billion pounds. Pfizer fell 0.4 percent to $31.15.
That sums up today’s highlights! Keep posted on all the day’s important events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets!
