Monday, April 9, 2012

US Equities Lower on NFP


US equities are lower today as they react to Friday’s Non Farm Payrolls jobs reports.  All three major indexes have fallen over 1.0%, with the Nasdaq leading the way down with a 1.3% loss.  The worse than expected NFP result on Friday contrasts to the previous figures this year which had shown employment growth easily surpassing forecasts.  Looking ahead, the question now for trades is whether the US will be able to continue with its slow and steady growth in the face of an apparent slowdown of Chinese growth, as well as the ongoing EU credit crunch.


More on the fall and Friday's NFP results from Yahoo Finance
NEW YORK (Reuters) - Major U.S. stock indexes were set to open about 1 percent lower on Monday after last week's much weaker-than-expected report on March U.S. job creation.
U.S. non-farm payrolls grew by 120,000 last month, far below the forecast gain of 203,000 jobs. The unemployment rate dipped to 8.2 percent, down from 8.3 percent in February.
The report casts doubt over the ability of the United States to help boost the global economy as Europe's debt crisis resurfaces and worries remain whether China's economy will avoid a hard landing.
Surprisingly soft producer prices data in China sparked concerns of waning demand, reinforcing expectations that a cooling economy has eclipsed inflation as the Chinese government's biggest near-term worry.   Read More

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