U.S. Jobs Report Shows 120K Jobs Were Added in November, but Unemployment Falls Unexpectedly to 8.6%

Attention turned on Friday to the United States, as the jobs report was released for the month of November. The nonfarm payrolls increased by 120,000 jobs, slightly below median estimates of 125 thousand jobs, and following the prior revised estimate of 100 thousand jobs added back in October. Nonetheless, the surprise was the sharp drop in unemployment, where unemployment fell to 8.6%, from the prior and expected estimates of 9.0%.

Investors focused on the sharp drop in unemployment, as demand for risky assets improved on rising risk appetite in markets, where investors targeted equities and commodities due to rising optimism in markets.

The U.S. dollar fell slightly against a basket of major currencies on Friday, where the U.S. dollar index was trading at 78.28, compared with the opening level at 78.34. The Euro fell against the Dollar, where the EUR/USD pair traded at $1.3420, compared with the opening level at $1.3466, the British Pound fell against the Dollar, where the GBP/USD pair traded around $1.5637 compared with the opening level at $1.5683, and the U.S. dollar gained against the Japanese Yen, where the USD/JPY pair was trading around 77.95, compared with the opening level at 77.76.

Stocks in the United States rallied by opening on Friday, as the Dow Jones Industrial Average was up by nearly 0.55% to trade around 12,086, while the S&P 500 index was up by nearly 0.75% to trade around 1253. European stock indexes were also higher before closing on Friday, where FTSE 100 was higher by nearly 1.20% to trade at 5555 and the DAX was up by nearly 0.90% to close around 6089.

Gold prices gained to trade now around $1751 an ounce and crude oil prices slightly gained to trade around $100 a barrel.

Leave a Reply

Your email address will not be published. Required fields are marked *