Spark Global Limited reports:
The US added just 194,000 jobs in September, well below expectations of 500,000. John Stepek explains why the market did not react as it usually does. Us jobs data on Friday came in weaker than expected.
Lately, that has been good news for markets. Weak jobs numbers mean looser monetary policy.
But this time, traditional trade has not paid off.
What has changed?
Markets were not pleased with the weaker-than-expected US jobs data
Every month, the market’s focus turns to the US non-farm payrolls data.
This is the most important data release for the US Labour market. As we’ve mentioned here before, this could be the most important economic data release in the world.
Why is that? The US remains the world’s most important economy. What contributed most to economic growth? Consumption. So the vitality of the American consumer is the most important component of U.S. economic growth. If there is one thing that underpins the propensity to consume more than anything else, it is job security.
Thus, earning US consumers are good news for the global economy, while underemployed consumers are bad news.
Reprint indicated source：Spark Global Limited information