The ADP employment report, known as the “small non-farm payrolls”, showed that the job market cooled in September, triggering investors’ bets that the U.S. Federal Reserve (Fed) may not tighten monetary policy this year. At the same time, U.S. bond yields have dropped since many years. The highs fell, the bond market got a chance to breathe, and the major U.S. stock indexes opened higher on Wednesday (4th).
before deadline,Dow Jones Industrial Averagerose nearly 30 points or 0.1%,Nasdaq Composite Indexrose more than 70 points or nearly 0.6%,S&P 500 Indexup 0.3%,Philadelphia SemiconductorThe index gained 0.6%.
The ADP employment report showed that U.S. private enterprise employment increased by 89,000 on a seasonally adjusted basis in September, which was far lower than the 150,000 economists expected, and also lower than the revised previous figure of 180,000, which increased from 177,000. The upward revision highlights the cooling of the job market.
Almost all of the job growth in the latest ADP report came from the services sector, and wage growth continues to slow. After the data was released, U.S. stock futures expanded their gains, and the market’s expectations for the Fed to raise interest rates again this year decreased.
At the same time, U.S. bond yields also fell from multi-year highs after the ADP report was released, supporting investor sentiment, with the 30-year government bond yield falling to 4.86%,10-Year Treasury Bond YieldIt fell to 4.74%.
Thomas Hayes, chairman of Great Hill Capital, commented on the ADP report and said that the data further proves that the Fed has done enough and they need to start to back down.
In the currency market, the Japanese government did not disclose on Wednesday whether it had entered the market to boostJPYand emphasized its determination to take action to deal with excessive volatility, making the market cautious about possible buyingJPYIntervention remains vigilant. According to money market data from the Bank of Japan (BOJ, BOJ), Japanese authorities may not have intervened in the currency market yesterday, but market participants said they would check the data released on Thursday (5th) to confirm this.
In terms of energy, the monitoring group meeting of the Organization of the Petroleum Exporting Countries and partner countries (OPEC+) is about to be held on Wednesday, but Saudi Arabia and Russia have successively issued statements stating that in order to maintain market stability, the two countries will continue to voluntarily reduce oil production until the end of the year.However, under the influence of multiple factors such as the strengthening of the US dollar, oil prices did not rise but fell after the news was announced. As of press timeBrent crude oiland West Texas crude oil futures fell 1.59% and 1.60% respectively.
As of 21:00 Taipei time on Wednesday (4th): Focus stocks:
Intel (INTC-US) rose 0.64% in early trading to $35.92 per share
Intel announced that it will spin off the Programmable Solutions Group (PSG) on January 1 next year and plans to publicly issue shares in the business within the next 2 to 3 years. The move will allow PSG to “comprehensively accelerate” growth and compete more effectively in the programmable logic gate array (FPGA) industry, which serves a broad range of markets through prefabricated chips.
Modena (MRNA-US) fell 0.45% in early trading to $102.62 per share
Moderna said that in an early study, a combination vaccine against the coronavirus and influenza produced a stronger immune response than the viral shots alone. The combination produced antibodies similar to or stronger than currently available flu vaccines and similar to previous stand-alone COVID-19 vaccine boosters against COVID-19.
Uber(UBER-US) rose 0.76% in early trading to $44.85 per share
Uber announced Wednesday that it can now offer return package shipping through its Uber and Uber Eats apps. The apps, traditionally used for ride-hailing and food delivery services, now offer a “return package” feature that allows customers to send up to five packages at a time for a flat fee of $5 or $3 for Uber One members.
Today’s key economic data: US ADP added 89,000 new jobs in September, expected to be 150,000, compared with the previous value of 180,000 US Markit service industry PMI final value in September is expected to be 50.2, the previous value was 50.5 US September Markit comprehensive PMI final value is expected to be 50.1 , the previous value was 50.2. The monthly growth rate of U.S. durable goods orders in August was revised to 0.2%. The monthly growth rate of U.S. factory orders in August was expected to be 0.2%, the previous value was -2.1%. The U.S. ISM non-manufacturing index in September was expected to be 53.6, the previous value was 54.5. Wall Street analysis:
Francisco Simón, head of European strategy at Santander AM, believes that the current weakness in U.S. stocks provides investors with opportunities to enter industries and companies that are highly sensitive to interest rates. In addition, in terms of medium- and long-term inflation expectations and growth, the current bond yield is already at a very high level.
Virginie Maisonneuve, global chief investment officer at Allianz Global Investors, said the market environment will be unstable until the direction of interest rates becomes clearer. He also said that from a long-term investment perspective, stocks with very strong structural growth support and high-quality balance sheets would be good choices.
2023-10-04 13:44:42
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