Stocks Drop, Treasuries Up on Payroll Data; Dollar Declines

Recent news on Stocks, Treasuries, Currencies across the globe. The impact of the recent US jobs reports data on the economy. The rally on Gold Futures are also published.
Spread the Word
Listed Under

Swiftsure Securities Ltd.


West Vancouver - British Columbia - Canada

Aug. 7, 2010 - PRLog -- Stocks and the greenback dropped and Treasuries rallied, sending the two-year note yields below 0.5 percent for the first time, as lower-than-estimated growth in company payrolls added to proof that the economic recovery is slowing.

The S&P 500 slimmed-down its weekly advance to 1.8 percent after private payrolls that exclude government agencies rose by 71,000, less than forecast, after a gain of 31,000 in June that was adjusted lower. The data added to concern that the United States has been slow in recouping the 8.4 million jobs lost since the recession began in December 2007, preventing consumer spending from accelerating.

“Figures on employment/unemployment are crucial to the economy that is moving forward and recovering and a significant indicator to the market –it’s quite unsatisfactory,” said George Ackermann, chief trading advisor at Swiftsure Securities Ltd. in West Vancouver, Canada.

Equities pared losses as the Federal Housing Administration said it will begin to accept applications for a program to help struggling mortgage borrowers.

JPMorgan Chase & Co., International Business Machines Corp. and Exxon Mobil Corp. led the drop in the Dow Jones Industrial Average, falling at least 1.2 percent each. The index slipped 21.42 points, or 0.2 percent, to 10,653.56, ending the week with a gain of 1.8 percent.

Earlier gains in stocks this week came amid better-than- estimated earnings. Per-share profit for S&P 500 companies has grown by 51 percent from the previous year and has beaten estimates at 78 percent of companies that have reported since July 12.

U.S. Treasuries are up after the jobs report on speculation that a stalled recovery may force the Federal Reserve to provide more stimulus.

The yield on the 10-year note decreased eight basis points to 2.82 percent. The extra yield investors demand to hold 10- year notes instead of 2-year debt dropped five basis points to 232 basis points. It fell to 227.5 basis points on July 1, reflecting the flattest yield curve since October. .

The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.6 percent and has dropped 1.5 percent over the past five days as it heads for a ninth weekly drop, the longest run of declines since 2004. The dollar lost at least 0.8 percent versus the euro and Swiss franc and earlier fell to 85.02 yen, the lowest level since Nov. 27.

Currencies of major commodity-producing nations retreated against the dollar, with the Canadian, Mexican and Brazilian currencies losing at least 0.3 percent.

The Canadian dollar weakened against all but one of 16 major counterparts, losing 1.9 percent versus the Swiss franc the euro and the Danish krone, after jobs data in that country also trailed estimates. Canadian payrolls shrank by 9,300 jobs in July, the first drop this year.

Gold futures for December delivery rose 0.7 percent to $1,207.50 an ounce, an eighth straight gain, on the Comex in New York. Earlier, gold reached $1,213.30, the highest level for a most-active contract since July 16.

# # #

Swiftsure Securities is a specialized futures broker that provides services, products and clearing partners that enable a fast and reliable way to execute and clear global futures, options and forex markets.

Swiftsure Securities is an agile, global firm that specializes in being a customer advocate providing personalized service along with customized trade execution and clearing solutions. The firm serves institutions, brokerage firms and individual professional traders who expect superior service throughout the world.
Source:Swiftsure Securities Ltd.
Zip:V7P 1B8
Tags:Swiftsure Securities Ltd., Stocks, Treasuries, Gold, Dollar, Canada
Industry:Investment, Finance
Location:West Vancouver - British Columbia - Canada
Account Email Address Verified     Disclaimer     Report Abuse

Like PRLog?
Click to Share