Market Commentary While debates around the world over a U.S. military strike on Syria continued throughout a short week, mortgage rates worsened alongside of high expectations for Friday’s payroll release. Rates improved significantly Friday morning after payrolls were much worse than expected. Friday’s monthly change in Nonfarm Payrolls was 169,000, versus its 180,000 estimate, with a 2 month revision to 104,000, versus its prior 162,000 release. Although unemployment fell to 7.3% from 7.4%, the Labor Participation rate also fell to 63.2% from 63.4%, showing a decrease in those looking for jobs. While the Obama administration continued to push for a military strike against Syria, China joined Russia in opposition, stating that a military strike would spike oil prices and create an economic downturn. Russian President, Vladimir Putin, threatened to send a missile shield to Syria if the U.S. launches an attack without the support of the United Nations. The Fed-tapering outlook was relatively hawkish early in the week, after San Francisco Fed President, John Williams, stated how the U.S. is getting closer to meeting its test of substantial improvement in the labor market. Tapering outlooks became more dovish Friday morning, after the payroll releases suggested that Fed tapering may be more gradual. The U.S. manufacturing outlook did improve this week, as ISM Manufacturing and Construction Spending were better than expected. While Initial Jobless Claims of 323,000 remain below their 350,000 benchmark for an improving employment outlook, this week’s dismal payroll releases suggest a more sluggish U.S. unemployment outlook as the week comes to an end.
Posted on: Fri, 06 Sep 2013 21:23:45 +0000
Trending Topics
Recently Viewed Topics
© 2015