As expected US payroll data added massive volatility in the market. Miss was massive.
- Euro went up more than 170 points against Dollar, currently trading at 1.128 against Dollar.
- SPX 500 has fallen to 1898 from 1935.
Given the miss, volatility is not surprising. US headline payroll came at 142,000 that is worst since April.
Actual Facts -
- August headline Payroll came at 142,000 missing expectation of 203,000.
- Net revision to August-July was-59,000.
- Last month's payroll number got revised to 136,000 from 173,000.
- Average hourly earnings rose by 2.2%, failing to gain on monthly basis.
- Unemployment rate remained same at 5.1%.
- Manufacturing payroll down by -9,000.
What to expect now?
- Sell off in equities, in spite of weaker non-farm show that market is more concerned over growth than FED rate hike. Today's payroll data might have pushed rate hike further into the future, but that is unlikely to bring smile to investors' face, instead it will come into everyone's mind - maybe US economy id not that strong - may be slowdown in China has finally started taking toll in world's largest economy.
- Growth data globally will be attracting attention going ahead.


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