Broadgate: Market News 8/3
8 March 2012
European equity futures and commodities rose as Greece moved closer to completing its debt swap. Greece’s largest banks, most of the country’s pension funds, and more than 30 European banks and insurers have agreed to the debt swap, bringing the total to about 124 billion euros ($163 billion). The goal of the exchange is to reduce privately held Greek debt. The offer ends at 10 p.m. Athens time today.
The yen weakened against all 16 major peers due to the record current-account deficit in Japan. However, the Japanese economy still shrank less than initially estimated and Asian stocks rallied the most in three weeks. In Japan, the government is scheduled to release a report on the nation’s gross domestic product at 8:50 a.m. in Tokyo.
The Labor Department will report tomorrow monthly jobs data, which economists forecast will show an increase of 225,000 private jobs and total non-farm payrolls growth of 210,000. This comes after 7 states and territories have reported an increase in jobless claims, while 44 had a decrease. Initial jobless claims reflect weekly firings and tend to fall as job growth, measured by the non-farm payroll, accelerates. The results of a survey by the National Association for Business Economics indicated that payrolls are expected to increase 170,000 a month on average in 2012. Last year, they rose an average 152,000 each month.
However, Federal Reserve Chairman Ben S. Bernanke said “the job market remains far from normal” when he spoke on Capitol Hill on the 29th February.
Historically, as the non-farm payrolls grew gold price have tended to decline, primarily due to the effect this news had on the U.S dollar. The growth in the non-farm employment is a positive sign for the progress of the U.S. economy with regards to its labor force and provides some signs of slow recovery. Thus the news tomorrow may also reflect an expected growth in U.S. demand for crude oil, and consequently may pressure crude oil prices upwards.
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