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Equity Traders Are Bullish Ahead Of Jobs Report

Published 05/01/2018, 10:38
Updated 03/08/2021, 16:15

European equity markets are driving higher this morning as the investor sentiment around the globe is running high. Traders will be waiting for the non-farm payrolls report from the US at lunchtime.

Johnson Service

(LON:JSG) issued a positive trading statement and it expects its full-year performance to be slightly ahead of the previous forecast. The company is continuing on the acquisition trail as it has bought out the StarCounty hotel for £3.9 million. The share price has been in a strong upward trend since 2012, and if the positive trend continues it could target 160p.

Centrica (LON:CNA) shares are higher today after Credit Suisse (SIX:CSGN) upgraded the stock to ‘outperform’ from ‘neutral’. The Swiss bank also changed its rating on United Utilities (LON:UU) from ‘underperform’ to ‘neutral’.

EUR/USD is weaker today as the greenback is firm ahead of the non-farm payrolls report. The stellar retail sales from Germany boosted the single currency temporarily, but the strength of the US dollar took over. Germany boosted retail sales of 4.4%, which smashed the expectations of 2.5%. The largest country is the eurozone is firing on all cylinders. Eurozone CPI rate fell to 1.4%, from 1.5% meeting expectations.

GBP/USD is slightly lower on the session as trader book their profits. The pound has had a positive run versus the US dollar recently, and seeing as it has been in a upward trend for over none months, it is likely to continue.

At 1.30pm (UK time) the US will announce the non-farm payrolls report, and the consensus is for 190,000 jobs to have been added in December, which could be a decline from the 228,000 that were added in November. Economists are expecting the unemployment rate to remain at 4.1%. Average earnings are tipped to hold steady at 2.5%, on an annual basis.

We are expecting the Dow Jones to open up 63 points at 25,138, and we are calling the S&P 500 up 6 points at 2730.

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No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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