On the final nonfarm Friday of 2020, the European markets were broadly positive, with the FTSE continuing to lead the way.
Up more than half a percent, the FTSE climbed past 6,500, a level last hit almost exactly 9-months ago – i.e. during the rapid descent following the first covid-19 outbreak in the UK.
Compared to this the pound was far more placid, up 0.1% against the dollar but down 0.1% against the euro.
Sterling spiked on Thursday following comments from the Irish foreign minister claiming a Brexit deal could be reached ‘within days’. Now the latest roadblock has appeared – or, rather, seablock, as arguments over fishing are once again threatening to sink negotiations.
The DAX woke at a slower pace on Friday, slipping 10 or so points, while the CAC added 0.4%, taking it within 5 points of 5,600.
Failing to close above 30,000 yesterday evening, the Dow Jones is ready to have another go this Friday, with the futures putting the index at 30,050 – essentially its all-time highs.
How it actually fares may be dependent on the state of the nonfarm figures from November. After months of retreat from that 4.8 million peak seen in June, this Friday’s reading is expected to come in at half a million on the nose. Again, pre-pandemic that would be a mind-blowing number; now it’d be a 7-month low.
Elsewhere, the average hour earnings are forecast to remain unchanged at 0.1%, while the unemployment rate is set to shrink a tiny bit more, from 6.9% to 6.8%.
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