US labour market report disappoints

The U.S. labour market report disappointed in September. Non-farm payrolls came in at 142k - significantly below the general expectations around 200k. On top of the September disappointment, both the August and July numbers were revised down significantly.

An upward revision to the August number was expected. The unemployment rate remained unchanged at 5.1% in line with expectations, while average hourly earnings were flat on the month against an upward revised August number.

All in all, a disappointing labour market report that lends clear support to the doves at the FOMC. Much stronger numbers are required in the October and November reports for a first Fed hike in December to remain in play, argues Nordea Bank.