Market Awaits Jobs Report

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 2, 2011 -- Ahead of the publication of the US Department of Labor’s August jobs report, stocks in Europe and Asia fell along with American futures and gold prices. DT Trading economists predict that the jobs report may show a decrease in hiring activity among US companies. The Swiss franc is on track for its largest weekly growth against the Euro after recently reaching yet another record high; meanwhile, oil and industrial metals slid back.

The MSCI All-Country World Index had lost 0.7% as of 10:33AM in London. DT Trading analysts note that this is the index’s second drop in a row. Futures on the Standard & Poor’s 500 Index also dipped 0.7%, while gold rose by 1.3%. The Swiss franc appreciated against 16 other major currencies. Oil and bronze fell 0.9%.

The numbers in the Department of Labor’s report will most likely show the US’s unemployment rate holding steady at 9.1% while the world’s largest economy struggles to increase the rate of its recovery. Goldman Sachs Group Inc and Societe Generale SA lowered their predictions on the number of jobs added. Global stock markets lost about $166 billion yesterday after global market equity shrunk by $4 trillion.

“Investors don’t know how to calculate the amount by which the US economy and the world economy have slowed and will continue to slow,” said Adam Cole, head of foreign exchange at RBC Capital Markets in London. “The majority of the problems in the US are sprouting from a lack of steady employment growth.”

Yields on 10-year German bonds fell by four basis points to 2.11% after falling to 2.08%, the lowest level since August 22. Two-year German bonds lost five basis points to drop to 0.59%. The Markit iTraxx SovX credit default swap index, which covers 15 western European countries, rose by seven basis points yesterday to 306, inching closer to its record 308 reached at closing on August 26.

Yields on two-year Greek bonds rose by 177 basis points, or 1.77 percentage points, to 44.7%. The country’s refusal to consider new economic austerity measures to close its budget deficit, which is just 1% away from being equal to its GDP, led to the suspension of a fifth tranche of aid from the European Union and International Monetary Fund, according to the Ta Nea news agency.

DT Trading Limited Analytical Department

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