Financial News

Stay tuned for our Daily Market Updates – live on your mobile or desktop, 5 days a week, before the European Open.

Jobs report disappoints

Jobs report disappoints

Jobs report disappoints

 

Employers in the United States hired at a much slower pace in September than anticipated, and worse yet, have hired at a slower pace than the previous month of August. Labour supply shortages continue to cause considerable pressure on the US economy, with the Labor Department releasing a less than enthusiastic set of numbers.

 

The United States added 194,000 jobs during the month of September, versus the more than one half million expected, and revised slightly upward to the 366,000 added during the month of August. The unemployment rate ended up being 4.8% versus 5.1% expected, with the August unemployment rate being unchanged at 5.2%. Average hourly earnings month over month were 0.6% versus the 0.4% expected and a revised 0.4% came out for August. Average hourly earnings year-over-year ended up being 4.6%, as expected, with a revised 4.0% for the month of August.

 

This is the second month in a row that Non-Farm Payroll numbers came out weaker than anticipated. The usual narrative is in play, meaning that people are assuming that the renewed fear over coronavirus is the culprit. That being said, it should be noted that the number might be skewed slightly due to the fact that unemployment benefits ran out during the middle of the month, suggesting that perhaps the number next month may reflect people being forced back into the workplace a bit better.

Bitcoin ready to see new ETFs

Bitcoin ready to see new ETFs

The United States Securities and Exchange Commission could approve as many as four bitcoin futures exchange traded funds in October, which could be thought of as a big win for the digital asset space. The ETF industry is worth more than $6 trillion, and the ability to easily buy and sell crypto is something that traders have been looking for. The ProShares Bitcoin Strategy ETF, Invesco Bitcoin Strategy ETF, VanEck Bitcoin Strategy ETF, and the Valkyrie Bitcoin Strategy ETF are all ready to be approved, rejected, or delayed by the SEC in the month of October.

 

Bitcoin futures ETFs will not hold bitcoin itself, rather they will hold futures contracts. Unlike in previous attempts, there seems to be more optimism surrounding bitcoin futures ETF prospects, especially after SEC Chair Gary Gensler stated in September that he is looking forward to reviewing such filings.

Evergrande expected to default according to banker

Evergrande expected to default according to banker

An investment bank advising some of Evergrande’s lenders say that the embattled Chinese property developer is likely to default after missing recent payments. Evergrande missed payments on two different dollar-denominated bonds worth $131 million. Both have a 30-day grace period before nonpayment becomes officially a default, ending in mid-October, but bankers have commented that there has been little communication from Evergrande and that bondholders and their advisors think a default is coming soon.

 

A default on offshore bonds is much more likely than the domestic ones as there have been steps to pay off local lenders. That being said, the question remains as to whether or not this will put a dent into appetite for Chinese investments.

Trade with a Licensed Broker

1market.eu

Licensed by CySEC

Our EU client portal, operated by Exelcius Prime Ltd. under CySEC Regulation, license number 366/18.

1market.com

Our global client portal.

Search