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US Market Outlook 06 Jul 2018

Posted by Tim Sholl on 06-Jul-2018 23:21:27

US employment numbers were out earlier with a stronger headline number of jobs at 213k (previous month 244k), but a higher unemployment rate at 4.0% (3.8% previous) and average weekly earnings at 0.2%m/m and 2.7%y/y and a higher participation rate at 62.9% (62.7% previous).  In summary a strong number showing strength in economy , but without anything to cause any inflation concerns and should be good for equities , bonds and help weaken the USD.

The imposition of tariffs on Chinese goods by the US this morning was the first real shot in what many think will be a trade war , already China has imposed tariffs to the same value on US products. It would appear likely that both sides will continue to up the ante and retaliate with Trump talking about potential tariffs of up to US$500 bn.

Latest prices show the DOW index at 24315 down 0.18% , the S&P500 at 2736 flat , the Nasdaq100 at 7109 up 0.12%. The US Dollar has weakened and we see the EUR at 1.1749 up 62 , the GBP is at 1.3261 up 36 , and the JPY is at 110.64 up 28. The DXY is at 93.75 down 47 . Gold is at 1255.85 down 1.50. WTI crude oil is at 72.17 down 1% after US stockpiles were reported higher than expected last night.

Bond yields have moved lower with US10yr now at 2.81% on the lower inflation threat and also safe haven buying on fears of a slowdown in world economy due to this trade war.

Daily Chart - Nasdaq 100 Index CFD - (USNAS100.I) - Set to break higher after solid jobs number.

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Topics: Trading, Market News, US Market Outlook