7 Apr 2014
Markets remain risk averse on NFP momentum, earnings concerns
FXStreet (London) - Markets remain in risk-off mode, with the focus now on the release of the minutes from the US Federal Reserve’s March federal open market committee meeting as well as the beginning of the US first quarter earnings season.
US non-farm payrolls rose by 192k in March according to data released on Friday, but disappointed markets that had been hoping for a 200k+ print following reassuring ISM and ADP reports.
The report triggered a sell-off in equities and other risk assets, with markets now abandoning hopes that the Fed will get cold feet and slow down its tapering of QE.
With a light calendar of top-tier data (none in the US today), markets are being driven by momentum from Friday as well as by concerns that we will see some disappointing numbers, particularly from technology stocks, when the US first quarter earnings season kicks off tomorrow.
Earnings concerns
Earnings concerns are being driven by the effects of disruptive US weather conditions and below-normal temperatures which were blamed for depressed consumer activity. However, the upward-revised payroll numbers for January and February suggests that activity may not have been affected as much as thought. Employment for January was revised from +129k to +144k, and the change for February was revised from +175k to +197k. With these revisions, employment gains in January and February were 37k higher than previously reported.
US non-farm payrolls rose by 192k in March according to data released on Friday, but disappointed markets that had been hoping for a 200k+ print following reassuring ISM and ADP reports.
The report triggered a sell-off in equities and other risk assets, with markets now abandoning hopes that the Fed will get cold feet and slow down its tapering of QE.
With a light calendar of top-tier data (none in the US today), markets are being driven by momentum from Friday as well as by concerns that we will see some disappointing numbers, particularly from technology stocks, when the US first quarter earnings season kicks off tomorrow.
Earnings concerns
Earnings concerns are being driven by the effects of disruptive US weather conditions and below-normal temperatures which were blamed for depressed consumer activity. However, the upward-revised payroll numbers for January and February suggests that activity may not have been affected as much as thought. Employment for January was revised from +129k to +144k, and the change for February was revised from +175k to +197k. With these revisions, employment gains in January and February were 37k higher than previously reported.