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The US economy added 227k jobs in November amid expectations of interest rate cuts for the third time this year before 2024 is out, according to data from the US Bureau of Labor Statistics on Friday. This marks a significant increase over October’s 36k new hires, giving the US Federal Reserve enough room to cut rates during its next meeting in December, with the implied probability of a reduction reaching close to 90%, according to a CME Group gauge, CNBC reports.
The unemployment rate slightly ticked up to 4.2% from 4.1% in October, The Guardian reports.
The labor market could be in for some headwinds once Trump takes office: US president-elect Donald Trump’s strategies might lead to a regression in employment rates if he chooses to go after “tns in tax cuts for the wealthy” and attempts to “slash public investments,” one expert said. Others believe that the results might be affected by Trump’s “mass deportation” plans, as the reference week for the figures was after the election, the Co-Director of the Center for Economic and Policy Research Dean Baker said.
And the path forward for rates is still uncertain: Some analysts believe the Fed should pause rate cuts, believing further rate cuts to be “unwise” while jobs pile up and inflation remains elevated, Economist Chris Rupkey said. One economist expects the Fed to pause cuts in January, and potentially go for one other cut in early 2025 before taking a longer pause.
MARKETS THIS MORNING-
Asian markets are mixed as investors digest growth data from Japan and inflation in China, with the Nikkei up 0.3%, Hong Kong’s Hang Seng trading flat, and South Korea’s Kospi down 2% following South Korean President Yoon Suk Yeol’s close brush with impeachment. Wall Street futures are unchanged after a record week for US stocks.
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ADX |
9,266 |
-0.1% (YTD: -3.3%) |
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DFM |
4,854 |
+0.7% (YTD: +19.6%) |
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Nasdaq Dubai UAE20 |
3,915 |
+0.3% (YTD: +1.9%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.4% o/n |
4.3% 1 yr |
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TASI |
11,955 |
+0.2% (YTD: +0.2%) |
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EGX30 |
31,061 |
+0.7% (YTD: +24.8%) |
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S&P 500 |
6,090 |
+0.3% (YTD: +27.7%) |
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FTSE 100 |
8,309 |
-0.5% (YTD: +7.4%) |
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Euro Stoxx 50 |
4,978 |
+0.5% (YTD: +10.1%) |
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Brent crude |
USD 71.12 |
-1.4% |
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Natural gas (Nymex) |
USD 3.08 |
-0.1% |
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Gold |
USD 2,659.60 |
+0.4% |
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BTC |
USD 100,027.80 |
+0.1% (YTD: +136.7%) |
THE CLOSING BELL-
The DFM rose 0.7% on Friday on turnover of AED 646.9 mn. The index is up 19.6% YTD.
In the green: Sukoon Takaful (+14.8%), Union Properties (+9.5%) and International Financial Advisors (+8.3%).
In the red: National Cement Company (-9.7%), Takaful Emarat (-8.8%) and BHM Capital Financial Services (-7.2%).
Over on the ADX, the index closed down 0.1% on turnover of AED 917.4 mn. Meanwhile, Nasdaq Dubai rose 0.3%.
CORPORATE ACTIONS-
Alpha Dhabi Holding approved a AED 2 bn interim dividend payout, consisting of a 20 fils payment per share, according to an ADX disclosure (pdf). The company changed its articles of association to allow the distribution of interim dividends during its board’s meeting.
