NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Dollar, oil down after US jobs; bond, gold up

Published 01/08/2010, 09:17 AM
GC
-
CL
-

* U.S. sheds far more jobs than expected

* Dollar falls, stocks mixed

* Crude oil and metal prices fall, but gold firms

(Removes wrong reference to dollar's highest level in paragraph 9)

By Dominic Lau

LONDON, Jan 8 (Reuters) - The U.S. shed far more jobs than expected in December, signalling a bumpy economic recovery and sending the dollar and raw material prices lower.

Safe-haven government bonds, which had been weighed down by hopes of recovery, rose however, along with gold prices.

Stocks were mixed, with the U.S. stock index futures down 0.1-0.4 percent and the pan-European FTSEurofirst 300 paring earlier gains.

Global stocks measured in the MSCI All-Country World Index, however, rose 0.4 percent, hitting a fresh 15-month high.

"The data shows that while the U.S. economy is improving, the road to recovery is still going to be bumpy, and this has wide implications for the global economy and presents challenges for the consumer," said Henk Potts, analyst at Barclays Wealth.

U.S. employers unexpectedly cut 85,000 jobs in December, cooling optimism on the labour market's recovery and keeping pressure on President Barack Obama.

The unemployment rate was unchanged at 10 percent in December. Analysts polled by Reuters had expected nonfarm payrolls to be unchanged last month and the unemployment rate to edge up to 10.1 percent.

Obama will make a statement on the economy at 1940 GMT.

The dollar fell 0.6 percent against a basket of major currencies and was 0.9 percent lower against the yen at 92.46. The euro was 0.5 percent higher versus the U.S. currency at $1.4389.

Gold prices, deemed as a safe asset, rose 0.5 percent to $1,137.20 an ounce.

Yields on benchmark 10-year U.S. Treasuries were down 3 basis points at 3.796 percent, while those on 10-year Bunds were down 3 basis points at 3.341 percent. (Additional reporting by Simon Falush in London)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.