Markets absorb impact of jobs report and election news
|The week has started on a cautious note, as traders have digested the European election results and continue to reflect on Friday’s solid US jobs report, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 slips in afternoon trading
“Stocks find themselves hit by several worries today. The stellar payrolls report on Friday has dealt a further blow to hopes of a US rate cut, and snap French elections have given traders something else to worry about. Plus, with US CPI and the Fed on the calendar for Wednesday there is little incentive for traders to plunge back in.”
Sentiment holding up well despite macro concerns
“Given the developments of recent days it is perhaps surprising that stock markets have not suffered heavier losses. But a booming US economy is ultimately good for stocks, and the shock of French elections may turn out to be a buying opportunity if Macron’s gamble pays off. Investors should be prepared for the Fed to err on the side of hawkishness this week, but not excessively so, and the bar to further rate hikes is still very high.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.