Asia Morning: US Stocks Advance Despite Mixed NFP Report

On Friday, the three major U.S. indices closed higher, despite weaker-than-expected nonfarm payrolls growth, as jobless rate fell for a seventh straight month.

Trading floor 3

On Friday, the three major U.S. indices closed higher. The Dow Jones Industrial Average rose 248 points (+0.8%) to 30218, S&P 500 added 32 points (+0.9%) to 3699 and Nasdaq 100 gained 61 points (+0.5%) to 12528. Energy (+5.4%), Semiconductors & Semiconductor Equipment (+2.8%) and Materials (+2.0%) sectors led the rally.


S&P500 Index Daily Chart:

Source: GAIN Capital, TradingView

Approximately 93% of stocks in the S&P 500 Index were trading above their 200-day moving average and 72% were trading above their 20-day moving average. The VIX Index dropped 0.49pt (-2.3%) to 20.79.

Regarding U.S. economic data, nonfarm payrolls increased 245,000 in November (+460,000 expected), while jobless rate fell to 6.7% (6.7% expected) from 6.9% in October, improving for a seventh straight month.

European stocks were broadly higher. The Stoxx Europe 50 climbed 0.6%, Germany's DAX advanced 0.4%, France's CAC 40 rose 0.6%, and the U.K.'s FTSE 100 added 0.9%.

The benchmark U.S. 10-year Treasury yield bounced to 0.9659%, the highest level since March, from 0.9063% Thursday. 

WTI crude futures rose 1.4% to $46.26 a barrel. Oil field services firm Baker Hughes reported that the total number of rotary rigs in the U.S. increased to 323 as of December 4 from 320 in the prior week.

Spot gold slipped 0.1% to $1,839 an ounce, halting a three-day rebound.

On the forex front, the ICE U.S. Dollar Index remained subdued near two-and-a-half-year low of 90.70, amid mixed nonfarm payrolls report.

EUR/USD eased 0.2% to 1.2120. It is reported that the European Central Bank is considering extending its pandemic bond-buying program by 12 months into mid-2022. Meanwhile, official data showed that German factory orders grew 2.9% on month in October (+1.5% expected).

GBP/USD marked a day-high of 1.3541 before closing 0.1% lower at 1.3437. Over the weekend, U.K. Environment Secretary George Eustice said the talks the European Union are "in a very difficult position" as the E.U. added a whole load of additional demands lately.

USD/JPY rebounded 0.3% to 104.14.

USD/CAD slid 0.6% to 1.2780, posting a four-day decline. Government data showed that the Canadian economy added 62,100 jobs in November (+20,000 jobs expected), while jobless rate unexpectedly fell to 8.5% (9.0% estimated).

Other commodity-linked currencies weakened against the greenback. AUD/USD lost 0.2% to 0.7421 and NZD/USD dipped 0.4% to 0.7045.

Build your confidence risk free

More from Indices

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.