CMC Markets Weekly Report
Stocks in the U.S. closed largely unchanged on Friday, as investors reacted to lower jobs growth and concerns over the potential for the Syrian impasse to escalate into a situation that could disrupt oil supplies.
Stocks in the U.S. closed largely unchanged on Friday, as investors reacted to lower jobs growth and concerns over the potential for the Syrian impasse to escalate into a situation that could disrupt oil supplies.
The Dow Jones Industrial Average slipped 14.98 points, to finish at 14,922.50 while the S&P500 rose 0.90 points to end at 1,655.17. The Nasdaq was also largely unchanged up only 1.23 points to 3660.10.
The US added only 169,000 new jobs in August compared to expectations of 180,000. The July number was also revised down to 104,000. Average jobs growth in recent months has now been around 150,000 compared to the 200,000 run rate previously assumed. This adds to concerns that the increase in bond yields and mortgage rates over the past couple of months is already having some negative impact.
Markets have wound back expectations for the Feds tapering program and this is supporting international equity markets. Taper Light now looks the most likely alternative with the Fed making a very modest reduction in asset purchases at its meeting next week and then adopting a wait and see stance before making further cuts.
A statement by Russian President Putin that Russia would continue to support Syria's Assad regime and may provide further S300 missiles saw gold and oil prices move higher in Friday trading. Gold finished up $24.40 at $1391.9. Brent crude finished at $116.21 per barrel up $0.95.
Australian markets have opened with small gains after the election and as investors react positively to news that China's exports increased 7.2% in August compared to the previous year. With a coalition victory widely anticipated, there has been little reaction to the news of a change in government in early trading.
The Australian dollar is fetching .9195 cents against the US Dollar. Against the cross rates AUD JPY is trading at 91.54 while Euro Aussie is 1.4328 and GBP AUD is quoted at 1.7011.
Major economic releases this week include:
Tuesday: NAB Business Condition Index and China's Industrial Production and Retail Sales for August
Wednesday: Westpac Consumer Confidence
Thursday: Australian unemployment
Friday: US Retail Sales
Frequently Asked Questions about this Article…
US stocks finished largely unchanged after the August jobs report. The Dow slipped about 15 points to 14,922.50, the S&P 500 rose roughly 0.9 points to 1,655.17, and the Nasdaq was up only about 1.23 points to 3,660.10.
The US added 169,000 jobs in August versus expectations of 180,000, and July was revised down to 104,000. Recent monthly job growth has averaged about 150,000 versus an earlier assumed 200,000 run rate. Slower payroll gains can influence interest rate expectations, market sentiment and potential Fed policy decisions.
Markets have scaled back expectations for aggressive tapering. The article suggests 'Taper Light' is now the most likely path — meaning a very modest reduction in the Fed’s asset purchases at the next meeting, followed by a wait-and-see approach before further cuts.
Gold and oil rose after Russian President Putin said Russia would continue supporting Syria’s Assad regime and might provide additional S-300 missiles—raising concerns the Syrian impasse could escalate and disrupt oil supplies. Gold closed up $24.40 at $1,391.90 and Brent crude finished at $116.21 per barrel, up $0.95.
Australian markets opened with small gains after the election, with investors reacting positively to China’s export data—Chinese exports rose 7.2% year‑on‑year in August. With a coalition victory widely anticipated, there was little early trading reaction to the change in government.
The article reports the Australian dollar at 0.9195 US dollars. Cross rates given include AUD/JPY at 91.54, EUR/AUD around 1.4328, and GBP/AUD about 1.7011. Currency moves can affect returns for international investors and impact commodity and export-exposed companies.
Key releases listed are: Tuesday – NAB Business Condition Index and China’s Industrial Production and Retail Sales (August); Wednesday – Westpac Consumer Confidence; Thursday – Australian unemployment; Friday – US Retail Sales. These reports can influence market sentiment and short-term price moves.
While the article doesn’t predict outcomes, it highlights Australian unemployment (Thursday) and US Retail Sales (Friday) as major data points. Both releases are closely watched because they provide insight into labour market health and consumer spending, which can influence central bank expectations and market direction.
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