However, caution prevails when we learn that the US created much more jobs than expected in July, encouraging further rate hikes by the Fed
Global stock markets reacted cautiously to one of the key macroeconomic references of the week, the US unemployment data, which will undoubtedly mark the next Federal Reserve (Fed) rate decision. And the conclusion is clear: as far as the labor market is concerned, the recession is far from over.
During the month of July, the US economy created 528,000 new jobs. A figure that is double what was expected by the analyst consensus. And the employment rate fell again to 3.5%, compared to the estimate that it would remain at the previous 3.6%. In both cases, these are pre-February 2020 levels, in the midst of the pandemic outbreak.
Investors are trying to remain calm in the face of the difficult balance of good economic news which, in turn, would facilitate further rate hikes. As European markets closed, Wall Street was cautious with slight losses in key indicators. In the Old Continent, the reds prevailed, although the Ibex-35 held up with a modest increase of 0.08%.
The indicator starts Monday from 8,168 points after gaining another 0.14% weekly and pegging its third consecutive week of gains.
Within the national trading floor, claims could have been greater had it not been for the downward pressure exerted by Cellnex, which fell 3%, and Naturgy, which fell 2.6% after learning that the company announced its semi-annual financial statements scheduled for the same year. Friday, until August 11, due to a legal conflict in Argentina.
Thus, the Ibex was unable to take full advantage of the good behavior of the banks during the session, with Banco Sabadell leading the selection with gains of 4.3%, while CaixaBank rose 3% and Santander another 1.6%. Other major stocks such as Telefónica also helped with the gains, rising 1.7%, pushing the operator’s price back to EUR 4.28 per share.
On the commodities market, the barrel of Brent, a benchmark in Europe, gained some ground to EUR 96 in a week marked by OPEC’s decision to timidly increase its production – at just 100,000 barrels per day – to EUR 96, while the US West Texas the 90 dollars. Both levels are already pegged to the $120 that was reached in June at the most tense times of the energy market.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
