Stocks skid after weaker-than-expected jobs report

January 13, 2020

By IFCMarkets

Dollar strengthening intact

US stock market pulled back on Friday after weaker than expected jobs report. The S&P 500 slid 0.3% to 3265.35, rebounding 0.9% for the week. Dow Jones industrial lost 0.5% to 28823.77. The Nasdaq fell 0.3% to 9178.86. The dollar strengthening halted as Labor Department reported the US economy added 145,000 new jobs in December, below the 165,000 expected and less than the 266,000 in the prior month. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 97.36 but is higher currently. Futures in stock indexes point to higher openings today.

European stock indexes slid

European stocks whipsawed on Friday paring earlier gains. GBP/USD continued its decline while EUR/USD turned higher on Friday with both pairs lower currently. The Stoxx Europe 600 Index slid 0.1%. The DAX 30 fell 0.1% Friday to 13483.31. France’s CAC 40 slipped 0.1% and UK’s FTSE 100 slid 0.1% to 7587.85.

Heng Seng leads Asian Indexes gains

Asian stock indices are mostly higher today. Stock market in Japan is closed for a holiday as yen accelerated its slide against the dollar. China’s markets ended higher: the Shanghai Composite Index is 0.8% higher and Hong Kong’s Hang Seng Index is up 1.1%. Australia’s All Ordinaries Index however turned 0.4% lower with Australian dollar climb against the greenback reversed.

XAUUSD rising above MA(50) 1/13/2020 Market Overview IFC Markets chart

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Saudi Aramco shares gain while Brent slides as Iran tensions fall

Brent futures prices are edging lower currently. Prices fell on Friday as geopolitical tension around Middle East subsided despite Baker Hughes report of a third consecutive weekly decline in the number of active US oil rigs after the Energy Information Administration data showing US crude supplies rose by 1.2 million barrels last week: Brent for March settlement fell 0.6% to $64.98 a barrel Friday. Saudi Aramco shares benefit from easing of Middle East tension, they are up 2.34%. And the company sold 450 million more shares to investors as part of efforts to support the price for a month in the market. Aramco sold 3 billion shares at 32 Saudi riyals ($8.53) each to raise $25.6 billion at the IPO a month ago. It has raised $29.4 billion so far.

Gold down as Dollar strengthens

Gold prices are inching lower after closing higher last week. February gold added 0.4% to 1560.10 on Friday.

Market Analysis provided by IFCMarkets

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