European stock markets ended the week with mixed signals after If the US jobs data fell, it destroyed all predictions.
On the last day of bank results, the Ibex closed almost stable (-0.04%) at 9,225.60 points.
Spanish-language properties rose a 1.8% for the fifth consecutive week.
A mixed day for the main ones European indices in the weekend session packed with important benchmarks. The central theme of the day was the first official US jobs report for the new year.
Analysts expect more signs of strength, the numbers of December will suffer a slight depreciation.
The estimates anticipated an unemployment rate 3.6%, barely a tenth above the half-century low recorded in December, and the creation of 185,000 jobs, in front of the 223,000 of the previous month.
The final information is more than any assumption. To the surprise of the market, the rate of unemployment fell to 3.4%, a new low in more than half a century (since 1969), and job creation it jumped to 517,000, almost three times more than expected.
The combination of these numbers gives good signals about the resilience of the economy. But at the same time, it raised new fears that monetary policy was less forgiving than expected. expected by the Fed.
The imminent end of the interest rate hikes in march and possible rate cuts interest rates at the end of the year are once again the subject of debate among analysts.
Regarding inflationary tensions, the employment report points to a rise in salaries of 4.4%, by below 4.8% from December, but 4.3% above from expert forecasts.
European stock markets ended the week with mixed signals after If the US jobs data fell, it destroyed all predictions.
On the last day of bank results, the Ibex closed almost stable (-0.04%) at 9,225.60 points.
properties in spanish they rose 1.8% for the fifth consecutive week.
A mixed day for the main European indices in the weekend session full of important benchmarks. The focus of the day was the first official employment report from USA of the new year.
Analysts expect more signs of strength. December numbers will suffer a slight depreciation.
The estimates predicted a unemployment rate of 3.6%, barely a tenth above the half-century low recorded in December, and the creation of 185,000 jobs, in front of the 223,000 of the previous month.
The final information is more than any assumption. To the surprise of the market, the unemployment rate fell to 3.4%, a new low in more than half a century (since 1969), and the creation of employment jumped to 517,000, almost three times more than expected.
The combination of these numbers gives good signals about the economy resilience. But at the same time, it raised new fears that monetary policy would be less lenient than expected by the Fed.
The imminent end of the interest rate hikes in March and the possible interest rate cuts at the end of the year they are once again the subject of debate among analysts.
Regarding inflationary tensions, the employment report points to a rise in wages from 4.4%, below 4.8% of December, but a 4.3% above the forecasts of the experts.
Other European stocks closed with a different trend. In Europe, after the European Central Bank avoided a market shock yesterday, analysts received Final Eurozone Composite PMI data slightly better than expected.
The final value reached 50.3 points, compared to 50.2 points of the initial estimate, a value that guarantees the resilience of the European economy since it is located just above the barrier of whats 50 points that separates contraction from growth.
At the close of the market, the German Dax lost a 0.21% while the Italian Mib lost 0.55%. The French Cac, which accumulated a maximum of 0.94%, and the British Ftse, which after registering a maximum of 1,04%, also recorded an all-time high, closing in positive territory.
Reporting season is underway and a report released in the last quarter of 2022 puts new victims in the stock market as Sanofi and Volvo.
Pharmaceuticals close below 1.9% on the Zurich Stock Exchange. Due to the lack of new catalysts for output gains.
The actions of Volvo Cars are down 2.3% on the Stockholm Stock Exchange.
One of the positive notes of the day was made by the navigation services company TomTom, which rose 4.6% on the Amsterdam Stock Exchange as a reward for its upward revision of its forecasts for 2023.
One of the keys to the year-on-year rise in European equities was the sharp fall in interest rates on debt.
With disinflation underway and waiting for the eventual Fed rate hike, the US yield to 10 Years started the day at 3.40 %, not far from 2022's 3.88 %.
Jobs data boosted interest rates above 3,50%. In Europe, German Bund interest rates rose, according to US data, a 2,20%, compared to 2,50% at the beginning of the year.
And the yield of Spanish bonds at 10 years has cooled from 3,66% to 3,12% quoted today.
The latest round of central bank rallies has multiplied portfolio adjustments in the foreign exchange market
The initial collapse of dollar to the fed gave way to a recovery of the European central banks that is intensifying today, once the strength of the US labor market
As a result, the euro fell to 1TP4Q1.08 after a recent high above 1TP4Q1.10.
The British pound sterling will bear the brunt of the Bank of England recession, falling below $1.21.
The oil market, which started from the top, suffered a sharp fall. He European benchmark Brent barrel fell to US$ 81. In the United States, in West Texas, the barrel it is trading at US$ 74.
The correction after data from United States of America reached the price of gold, which fell to US$ 1,880 the ounce after a rise that approached the barrier of whats US$ 2,000 an ounce at the beginning of the week.
The price of Bitcoin is maintained by above the $ 23,000 level.