As of 7am in London the spread betting markets were quiet ahead of the all important US Non Farm Payroll numbers at 13.30. The economic report is one of the major market moving events each month. A big deviation from expectation levels can set markets tumbling or shooting higher.
Tomorrow, the median analyst estimate is -101K, but its worth noting that payrolls have come in below estimates in each of the last three reports.
And as of yesterday, the EUR/GBP has extended its gains.
Afternoon report: Markets Rally on better than expected payrolls
US Non Farm Payroll numbers have given markets cause to extend the rally today with the FTSE 100 now above its August highs.
September is statistically one of the worst months on the stock market, but 2010 looks to be bucking that trend with big gains across the board. NFP came in at -54K vs consensus of -105K.
It hasn’t all been good news though with the unemployment rate unchanged and ISM Non manufacturing PMI coming in well below estimates. Goldman Sachs commented on the NFP saying the numbers were “better than expected but below the rate needed to keep the jobless rate stable”.
Perhaps this explains why forex financial spread betting markets are not displaying the same enthusiasm for risk taking as stock markets.
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Commentary by David Evans, BetOnMarkets.
The above should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument.