What drives the market on August 12?
The US dollar edged higher, while gold dipped down. Let’s discuss main news and market movements in detail.
American weekly jobless claims rebound from one-and-a-half-year peak
The previous week the total number of US citizens who filed applications for unemployment benefits shrank from a 1-1/2-year maximum, although the dive happened to be less than anticipated, suggesting some moderation in the tempo of job surge.
The Labor Department's report pointed to firm job market conditions that should back the American economy in the face of soaring headwinds, such as a weakening fiscal stimulus boost as well as a trade conflict between China and America, no to mention decelerating surge in the EU and China.
The previous week the major US financial institution left interest rates on hold, although told it would be patient in raising borrowing costs in 2019 nodding to soaring uncertainty over the economy's outlook.
Labor market conditions are still upbeat, which is positive news for US employees, the consumer sector and the American economy in general.
As a matter of fact, initial claims for state unemployment benefits went down 19,000 to a seasonally updated 234,000 by February 2. The tumble partially unwound the previous week's rally that lifted claims to up to 253,000, which appears to be the highest outcome since September 2017.
That week claims were powered by layoffs in California in the service industry and also striking tutors in Los Angeles.
A 35-day partial government shutdown and difficulties updating the data around moving holidays such as Martin Luther King Jr. Day that took place later this year than in recent years, backed the spike in filings.
The longest shutdown in the history of America made staff members employed by government contractors come up with claims for unemployment benefits.
The shutdown concluded on January 25 right after US leader along with the country’s legislative body agreed to temporary government financing, although without funds for his US-Mexico border wall.
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The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
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