Markets Watching Closely the US Jobs Report

Markets are feeling some appetite for risk ahead of the jobs report from the United States later today, since investors expect a positive surprise from the Nonfarm payrolls numbers, as median estimates suggest there will be 125,000 jobs added in Nov.

These expectations follow the ADP employment report which showed private employers added a staggering 206 K jobs in Nov. A positive outcome will boost risk appetite even more. Investors are also looking forward to the European summit next week awaiting for more progress on the debt crisis.

Yet volume seams to be somehow light today as cautious is prevailing on worries from the weakening global economy, while some investors are closing their positions to lock on profits. If the jobs report will present a weak outcome, investors are likely to target lower assets once again.

Asian stocks climbed 7.8% in the last five days, the biggest weekly gains since May 2009, where Nikkei rose 0.54%, while Hang Seng rose 0.20%. In Europe, stocks resumes their rise ahead of the jobs report where FTSE 100 rose 1.74%, DAX rose 1.70% and CAC 40 rose 1.77%.

As investors are targeting today the higher yielding assets, the USD index fell as of this writing to 78.20 level, while the euro rose to the 1.3485 level. The euro zone released today the producers price index which fell to 0.1% in Oct. from the previous 0.3%.

The pound is almost unchanged trading around the 1.5688 although UK released a better than expected PMI construction for Nov. yet it was below the previous reading. The AUD rose today, trading around the 1.0265 level. The yen weakened  trading around the 77.85 level as demand for safe haven narrowed.

Commodities are moving in tight ranges yet with an upside bias as the US dollar is loosing momentum, where gold is trading around the $1749.10 per ounce level while oil is trading around the $100.50 per barrel level.

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