The growth of the dollar is gaining momentum after the data on the labor market

Friday's labor market report showed an increase in the nonfarm payrolls by 379,000 people, where there were 465,000 people more in the private sector, while the number of civil servants fell by 86K. There was an increase in the number of workplaces by 90,000 in catering, retail, health care, and manufacturing. The number of people working in the foodservice increased by 286,000, which is the largest increase since July.

The decline in the number of Covid-19 cases, along with the easing of restrictions on business dealing in some states, is leading to an increase in hiring. Job growth in February was supported by a 355,000 rise in entertainment and hospitality jobs, which are the sectors that were hardest-hit by the pandemic and are key to the rapid recovery of the labor market.

The 10-year Treasury bonds yield rose sharply to 1.63% after the release of the report which is the maximum since February last year. The dollar also rose and the stock market cut its losses. Many economists expect that the employment and economic growth prospects will improve in the coming months as vaccinations will become more widespread and pandemic fears diminish.

In the Asian session on Tuesday, the credit market moved to a correction against the background of price reduction on the oil market. Brent oil fell to $67.90 p/b after hitting $71.15 on Monday.

According to some investment funds, you can see multidirectional fluctuations at this stage, as the fundamental background for risky assets is mixed. On the one hand, a quick economic recovery is expected due to stimuli. On the other hand, price pressure and rising costs of long-term borrowings represent a threat to further growth in stocks.

Main market quotes:

S&P 500 (F) 3,846.12 +26.87 (+0.70%)

Dow Jones 31,802.44 +306.14 (+0.97%)

DAX 14,380.91 +460.22 (+3.31%)

FTSE 100 6,719.13 +88.61 (+1.34%)

USD Index 92.127 -0.207 (-0.22%)

• – Japan GDP (q/q) (4q.) at 01:50 (GMT+2);
• – Eurozone GDP (q/q) at 12:00 (GMT+2).

by JustMarkets, 2021.03.09

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.