Investors Anticipate Friday's Jobs Report as the U.S. Economy is Estimated to have Created 175,000 New Jobs

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August 4, 2016 -- U.S. stocks regained some of Tuesday's losses and precious metals prices fell during yesterday's trading. Turmoil eased in the currency and bond markets following a disappointing stimulus package from Japan's central bank. And the equity markets got a boost from the rebound in crude oil prices, which surged back above $41 per barrel.

Investors are anticipating Friday's jobs report for July. The consensus estimate is for the U.S. economy to have created 175,000 new jobs -- and that would be a solid number. Should jobs creation either exceed expectations or miss them by a wide margin, investors will be gauging the probability of interest rate hikes by the FOMC this fall.

However, most experts do not expect the Fed to raise rates given the recent disappointment of 2nd quarter GDP data and downward revisions in prior quarters. In fact, an increasing number of observers believe the Fed's next move could be to lower rates and even restart direct money injections known as Quantitative Easing. Only time will tell.

At some point soon, equity prices and precious metals prices may resume trading in the same direction. Though the correlation has broken down in recent weeks, it is common for these two asset classes to move together in response to inflation expectations and Fed policy.

Live prices at MoneyMetals.com show gold currently trading at $1,364.25 per ounce on the global market, and silver is coming in at $20.49.

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