Market Brief: Solid NFP Erases Indices’ Early-Week Losses

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

*Please note that the Pre-Asia Market Brief report will be on hiatus next week, returning Monday December, 16.*

  • OPEC formalized a 500k bpd production cut, with additional voluntary cuts from Saudi Arabia.
  • US data: Non-Farm Payrolls (Nov) printed at 266k, well above expectations of a 180k rise. Previous reports were also revised up by 41k. Average Hourly Earnings rose just 0.2% m/m (3.1% y/y), keeping a lid on the ensuing US dollar strength. Separately, the UofM Consumer Sentiment report improved to 99.2, above estimates of a 97.0 reading.
  • FX: The New Zealand dollar was the strongest major currency on the day, while the Canadian dollar brought up the rear. An abysmal Canadian jobs report (-71.2k jobs, unemployment up 4 ticks to 5.9%) was the main culprit.
  • Commodities: Oil gained over 1% on confirmation of the OPEC production cuts; gold slipped more than -1% on the back of the solid NFP report.
  • US indices closed sharply higher to erase the losses from earlier in the week and close near record highs once again.
  • Energy (XLE) and Financials (XLF) were the strongest sectors on the day. Utilities brought up the rear, closing lower on the day.
  • Stocks on the move:
    • Financial stocks, including Bank of America (BAC, +1%), Citigroup (C, +1%), and J.P. Morgan (JPM, +2%), rallied across the board on rising bond yields.
    • Oil stocks also rose, helped along the OPEC production cut. Both Chevron (CVX) and Exxon Mobile (XOM) rose 1-2%.
    • Manufacturing firm 3M (MMM) gained 4% after report that it was exploring selling off its drug delivery business.
    • Uber Technologies (UBER) shed -3% on news that it received 16% more sexual assault reports this year than last. The company has long struggled with concerns about its culture.

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