CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Market Brief Solid NFP Report Pumps Up Risk Appetite

Article By: ,  Head of Market Research

Market Brief: Solid NFP Report Pumps Up Risk Appetite


View our guide on how to interpret the FX Dashboard.

  • The October Non-Farm Payrolls report printed at 128k, above economists’ expectations (especially accounting for the nearly +100k positive revision to previous readings). While wage data came in a tick soft, last month’s earnings figures were revised up by +0.4% m/m, suggesting that the US labor market remains generally strong. Separately, the ISM Manufacturing PMI report missed expectations and remained in contractionary territory for the third straight month.
  • FX: In a typical risk-on configuration, the growth-sensitive New Zealand dollar was the strongest major currency, with the safe haven Japanese yen bringing up the rear.
  • Commodities: Oil surged nearly 4% today to extend its recent streak of volatility; gold was essentially flat.
  • See the key data and market themes we’ll be watching in the coming week!
 
  • US indices closed roughly 1% higher across the board to hit new record highs, reassured by the solid NFP report and continued optimism about a potential US-China “Phase One” trade deal.
  • Energy (XLE) was the strongest sector, boosted by the big rally in oil prices. REITs (XLRE) were the weakest.
  • Stocks on the move:
    • Alibaba (BABA, -0%) reported strong adjusted earnings of RMB 13.10 per share, up more than 30% from last year. Despite beating both earnings and revenue estimates, the stock finished the day essentially flat.
    • Exxon Mobil (XOM) tacked on 3% despite a 50% drop in earnings as the company reported better-than-expected revenue amidst falling oil prices. Rival Chevron (CVX, -0%) was essentially unchanged on the day after missing analysts’ EPS and revenue estimates.
    • Pinterest (PINS) shed -17% today after yesterday’s disappointing revenue figures.
    • US Steel (X) reported a loss this quarter, but beat revenue expectations, leading the stock to rise 15% on the day.
    • Warren Buffett’s Berkshire Hathaway (BRK.B, +2%) reports earnings over the weekend.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

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