First minutes of trading in the name of uncertainty for Wall Street after the publication of data on the US labor market, with the disappointment of payrolls. The Dow Jones is trying to catch up and has now moved into positive territory at 34,549 points, while the S&P 500 and Nasdaq are up 0.28% to 4213 points and 0.84% to 13745 points, respectively. In detail, in the month of April in the non-agricultural sectors, there was an increase of 266 thousand new jobs, a figure worse than the consensus expectations (about 1 million new jobs). The unemployment rate rises from 6% to 6.1% (expectations at 5.8%).
The effect on the markets was immediate: the dollar, which was already at the lows of the last week, increased its losses, allowing the euro to mark an increase of about half a percentage point, over $ 1.21. Also important is the turnaround in 10-year Treasury rates, which slipped by 5 basis points: the total collapse of the reflation trade assisted hi-tech stocks, which immediately returned to rise, with Facebook, Amazon, Netflix, Alphabet, Apple all grew by about 1%.
“The disappointing data on the US world of work confirm the ultra-accommodative strategies of Fed chairman Jerome Powell – comments Filippo Diodovich, senior strategist of IG Italia -. It is too early to start the exit strategies from the unconventional measures carried out by the operational commission of the central institution. For the start of tapering or reductions in monetary stimuli (a process that has already begun by other central banks such as the Bank of Canada and the Bank of England), it will be necessary to wait a little longer ”.