Stronger-than-expected US jobs data boost stock markets – business live
The dollar has shrugged off its earlier weakness and risen on the US jobs data – which means the pound has lost ground against the greenback, and is now flat at $1.2945. It is still up 0.19% against the euro at €1.1629.
Here is some instant reaction to the data.
James Ingram, investment manager at MB Capital, says:
“With the labour market somewhat beyond full employment, past tight labour markets have shown payroll growth tending to reaccelerate in October (for example in 2007 and 1999). Accordingly, we believe some firms likely pulled forward hiring into October. This may be holiday related.
This is somewhat stronger than our estimates and suggests the underlying economy remains resilient to trade disputes and the pace of job growth remains good. A huge beat on non-farm payrolls and a figure Trump can continue to boast about with his eye on his next term.
Coupled with an inflation figure that continues to be sluggish and below the Fed target of 2% positively shows there isn’t any sign of the tight job market causing a risk of overheating the economy.”