United States NFP Report Below Expectations

News Event

From Trading Economics: Total nonfarm payroll employment in the United States increased by 161,000 in October of 2016, less than an upwardly revised 191,000 in September and below market expectations of 175,000. Employment continued to trend up in health care, professional and business services, and financial activities. So far this year, employment growth has averaged 181,000 per month, lower than an average monthly increase of 229,000 in 2015.

Market Opening Wrap

In European Equity Markets stocks fell on Friday, weighed down by weaker drugmakers after two U.S. lawmakers called on federal antitrust regulators to open a probe for possible price fixing. The pan-European STOXX 600 index was down 1 percent and on track for its biggest weekly fall since February. The U.S. lawmakers on Thursday called for a probe into whether Sanofi, Eli Lilly, Merck and Novo Nordisk colluded to set prices for insulin and other diabetes drugs. Sanofi and Novo Nordisk were down 1.6 and 2.9 percent respectively. Ubisoft rose 9.5 percent, topping STOXX gainers, as Kepler Cheuvreux upgrade the French game developer to "buy" after the company lifted its operating profit target.

In Currency Markets the U.S. dollar fell against the safe-haven Swiss franc on Friday on nervousness ahead of next week's U.S. presidential election, despite a solid U.S. jobs report that supported expectations for a Federal Reserve rate hike next month. The dollar was last down 0.26 percent against the Swiss franc at 0.9713 franc, near a one-month low of 0.9691 touched on Wednesday. The dollar was mostly flat against the yen at 103.01 yen, also close to a one-month low of 102.54 hit on Thursday. The euro was last trading mostly flat against the dollar at $1.1107 after initially falling 0.2 percent to a session low of $1.1081. The dollar index was down 0.12 percent at 97.07, just off Thursday's three-week lows of 97.07.

In Commodities Markets  oil futures on Friday were on course for their biggest weekly percentage declines since January of just under 10 percent as signs of tensions resurfaced between Saudi Arabia and Iran that could scupper a key supply cut pact. Brent futures fell 73 cents to $45.62 a barrel, a 1.6 percent loss. U.S. crude fell 60 cents to $44.06 per barrel, a 1.3 percent loss.  Spot gold was last at $1,303.53 an ounce, off a low of $1,295.71 in the immediate wake of the payrolls data but little changed from $1,303.25 on Thursday. Silver was up 0.3 percent at $18.38 an ounce, on track to post its third consecutive weekly rise. Platinum was up 0.8 percent at $1,000.70 an ounce, while palladium was 1.8 percent higher at $626.97.

In US Equity Markets  stocks were higher on Friday, with the S&P 500 looking to snap its longest losing streak since 2008, even as worries over the outcome of the U.S. presidential election continued to weigh on sentiment. The S&P 500 was up 0.26 percent, at 2,094.09 and the Nasdaq Composite rose 0.24 percent, at 5,070.52.  Alexion Pharma jumped 7.3 percent and gave the biggest boost to the sector. Regeneron Pharmaceuticals rose 2.6 percent after its quarterly profit handsomely beat Wall Street estimates. Starbucks rose 3.1 percent, a day after the company reported better-than-expected quarterly results. Monster Beverage fell 5.9 percent after a host of brokerages cut their price targets on the energy drink maker's stock following its quarterly result.

In Bond Markets U.S. Treasury prices gained on Friday as oil prices fell, raising concerns about low inflation, and as uncertainty about next week's U.S. Presidential election enhanced the appeal of lower risk assets. Benchmark 10-year notes were last up 5/32 in price to yield 1.80 percent, after rising as high as 1.83 percent on the employment data. Nonfarm payrolls increased by 161,000 jobs last month, the Labor Department said on Friday. August and September data was revised to show 44,000 more jobs created than previously reported.

Source: Institute of Trading and Portfolio Management