Robust US employment data spread euphoria across equity and commodity markets

Friday, December 06, 2013

The strong US employment data led to rallies across the equity and commodity markets today. European equities found upside momentum and climbed higher on Friday, while the euro has remained strong, eyeing the 1.37 level against the US dollar.

CAC, DAX and London surged between 0.72% and 0.96%, while Dow Jones rebounded strongly, rising more than 150 points at the time of writing.

On the macroeconomic front, the US non-farm payroll data was fairly strong, showing an increase of 203K in payrolls in November, beating analysts’ expectations and showing further progress in the US employment conditions. In addition, the US unemployment rate dropped sharply to 7% in November to hit a 5-year low. The University of Michigan/ Thomson Reuters survey showed consumer sentiment index (preliminary) has also been positive, climbing to 82.5 in December compared to 75.1 in November.  

Mining and energy stocks added the most points to the London equity market today, following stronger base/precious metals and oil prices. Petrofac, Royal Dutch Sheel and Tullow Oil added between 1.52% and 3.65%. In metals, Fresnillo surged by 2.23%, while BHP Billiton, Anglo American and Rio Tinto gained more than 1.1%.   

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