‘Sun Worldwide’- Worldwide Economics– (162,000 New US Jobs)...

April 20, 2010 - PRLog -- “Sun Worldwide” analysts have welcomed the latest US non farm payrolls report which shows that the world’s largest economy created 162,000 new jobs in March, the most since March 2007. Although the unemployment rate remains static at 9.7%, an America enjoying the Easter holiday greeted the news as a sign that the sustainable recovery desired by so many may actually be underway. http://www.businessweek.com/investor/content/dec2009/pi2009129_624530.htm

The broad expectations had been for an increase of 190,000 jobs but the better-than-expected rise in new hires in the private sector gave the report a more bullish overtone.

The stock market was bad for Good Friday but, on the foreign exchange markets, the US dollar gained sharply against the Yen reaching a fresh new 7-month high. http://www.nyse.com/

“Sun Worldwide” said that it remains to be seen if the recovery will be sustainable but, for now, the real test will come if the Federal Reserve begins tightening monetary policy later this year.

The labor market has lagged behind during the recovery from the long downturn but this report may mark the end of that particular trend according to “Sun Worldwide” sources. The firm is thought to expect the stock market to rally beyond the psychological 11,000 mark when markets open again after the Easter holiday but “Sun Worldwide” also suggested that the rally might not last if investors decide that the encouraging report increases the likelihood of the tightening of US monetary policy.