July 5, 2022

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Ibex launches for 8800 points with a focus on employment in the US |  markets

Ibex launches for 8800 points with a focus on employment in the US | markets

After yesterday’s closing of the tables, the IBEX 35 He wants to say goodbye to this week in a positive way. Futures advanced half a percentage point and today the Spanish index is seeking to regain 8800 points. He has a lot to overcome if he wants to say goodbye to the week with a positive balance, because in the previous four days he accumulates a decrease of 2.1%. Today, investors are attending an intense session in the macroeconomic references, with the Services PMI and non-farm employment data from the US.

In Asia, the Nikkei rose 1.27% as concerns about a rate hike in the US eased. Wall Street closed higher overnight and the Dow Jones rose 1.33%. New York’s Parquet is closely following the Fed’s moves to assess the extent and speed of the central bank raising interest rates to control inflation, a maximum we haven’t seen in decades.

On Thursday, the ADP National Employment Report showed that US jobs rose at a slower than expected pace last month. Investors are awaiting today the full jobs report from the US Department of Labor to confirm the slowdown in the labor market, which could persuade the Federal Reserve to reduce interest rate increases for the rest of the year.

“For equities right now, anything that could be considered a cap on Fed tightening could be viewed as supportive,” Rob Carnell, head of ING Asia Research told Reuters.

“The weak macro data therefore becomes positive for the stocks,” the expert adds. Economists expect about 325,000 jobs to be added last month in the US and estimate unemployment has fallen to 3.5%. Carnell said, “Any deviation from these numbers shows the consistency of the labor market better than this may be negative for stocks and vice versa.”

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Inflation is the biggest concern of the Federal Reserve and global policy makers. Federal Reserve officials said that US interest rates are likely to continue to rise strongly unless inflation declines.

“The initial rate hike pressure that built up the previous day on the back of strong economic data eased immediately following the release of the weaker-than-expected May employment report from the ADP, suggesting things are slowing,” said Stephen Innes of SPI Asset Management.

Markets focused on the consecutive 50 basis point hikes by the Fed in June and July, but the dollar rebounded this week due to uncertainty over what happens next.

In the commodity market, oil prices rose after a decline in US crude stocks amid rising demand, even as the OPEC + oil-producing countries agreed to increase production.

Brent crude futures rose 0.09% to $117.72 a barrel, while US West Texas Intermediate crude settled at $116.94.