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Morning Market Scoop 1 February 2019


Morning Market Scoop 1 February 2019

In our morning market scoop:

  • U.S. Non-Farm Payrolls (NFP)

Non-Farm-Payrolls-inside-scoop"JOBS, JOBS, JOBS”

What’s the scoop? U.S. Non-Farm Payrolls (NFP)

The U.S. Non-Farm Payrolls (NFP) is known as the “Super Bowl” of trading days for many market participants. The long-awaited jobs number will be released later today at 15:30 SAST.

  • The Jobs number is important to watch because it is treated as an economic indicator for people employed during the previous month and the number being released will have a direct impact on the markets.

The big picture – Looking at the ADP Non-farm Employment Change released on Wednesday, the change in private employment came in better than expected at 213K jobs for the month of January 2019. The ADP number came in much higher than expected for the second month in a row and it might just be an indication of what’s instore for NFP later today. The Non-Farm Payrolls report (NFP) will give an indication as to whether the U.S Economy and its labour force is still growing at a strong pace or in fact slowing down.

  • In the United States consumer spending accounts for most of the economic activity and the Non-Farm Payrolls report represents 80% of the U.S workforce.

The Federal Reserve's Federal Open Market Committee (FOMC) will also be watching the data closely and keeping an eye on its inflation (CPI) targets.

  • Traditionally an increase in labour should contribute to increased consumer spending and in turn increase inflation (CPI). Which in turn might prompt the FED to start looking at raising interest rates.

Take note the markets will react to the data being released later today.

Notable companies reporting earnings are:

  • Chevron, ExxonMobile and Sony

What does all this mean for me?

  • If you are a market participant, then the NFP Jobs report will give you a glimpse of what’s to come in future U.S trading sessions. The US labour market seems to be gaining momentum but the comprehensive NFP report later today will give complete overview. If the U.S market starts to slowdown then that will have an after effect on the global economy.

Just incase you missed the U.S. Non-Farm Payrolls (NFP) click HERE!