US equities finished lower on Friday following a mixed jobs report, with technology shares leading declines.
United States
For the month of February, the latest non-farm payroll report showed 275k jobs were added, well above the 200k forecast. Despite this, the unemployment rate rose to 3.9% compared expectations to remain unchanged at 3.7%. In a welcome relief for policymakers, wages grew 4.3% over the year as forecast, easing from 4.5% previously. Treasury yields were little changed in reaction with the 2-year down 2.7 basis points to 4.476% and the 10-year little changed at 4.076%.
The S&P500 declined -0.65% along with the Dow Jones -0.18%, Nasdaq Composite -1.16% and Russell 2000 -0.10%. Ahead this week, Tuesday will bring the latest inflation data for February, expected to show core prices moderated to 3.7% over the year and 3.1% for headline prices. This is followed by the latest producer price data on Thursday along with retail sales for February forecast to have risen 0.7%. Finally, the week will be rounded off with the latest industrial production numbers and consumer sentiment for March.
Europe
European equities were mixed on Friday, although finished up for a seventh consecutive week. The Euro Stoxx 600 edged up 0.02%, the CAC rose 0.15% while both the DAX and FTSE100 were -0.16% and -0.43% lower. There was little economic data to guide investors on Friday, who will be looking ahead to the latest UK unemployment data on Tuesday along with GDP. The week will be rounded off with the last economic sentiment surveys for the Eurozone and Germany in an otherwise quiet week.
Australia
The ASX is expected to open weaker this morning with ASX200 futures down -47 points or -0.60% to 7,811. The index rose 1.07% on Friday, taking a weekly gain to 1.93% to a new record high. The gains follow comments from Fed Chair Jerome Powell last week suggesting policymakers were beginning to view price pressures as subdued. This week will be relatively light in terms of key economic data, with Chinese New Yuan Loans for February in focus on Tuesday followed by Australian consumer inflation expectations for March.
Commodities
Oil prices finished lower on Friday with both WTI and Brent crude -1.17% and -1.06% to US$78.01 and US$82.08 a barrel respectively. Iron ore futures finished -0.81% on Friday to US$114.25 and copper was also -0.88% lower. Gold extended a run of gains to a new record high, up 0.88% to US$2,178.95 an oz, silver however was little changed at US$24.31, and Bitcoin rose 1.58% to US$68,398.
Economic Calendar
11th March 2024
Japan GDP (QoQ Q4) 10:50
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
