(As of 7:34 am pacific)
Stocks start the day lower as disappointing US jobs data
adds to the growing concern over global growth.
Most major asset classes are down today in a risk off scenario for
markets around the globe. This morning
the US Labor Department announced the economy added 80,000 jobs in June, well
below the 100,000 economists had forecasted and the jobless rate remained
unchanged at 8.2%. After a strong first
quarter which saw an average of 276,000 jobs created per month, only 75,000
jobs have been added per month in the second quarter, indicating a sharp
slowdown in hiring. The other news that
could be moving the markets are comments made earlier this morning by IMF
Director Christine Lagarde when she stated that growth indicators had become
worrisome and to expect a cut in the IMF’s global growth outlook. European markets were down on jobs data and
Lagarde’s comments as well as lingering fears over the situation in Spain where
Spanish bond yields spiked today. Asian
markets were down in response to yesterday’s poor US services data and
investors were cautious as they awaited today’s jobs data. Commodities are down across the board with
oil down nearly 3% and gold off 1.2%.
The US dollar is surging as investors flocked to the safety of the greenback. Interest rates fell slightly and volatility
was up, but not as much as we expected.
It’s a risk off day, and we don’t expect much change in the
afternoon. Next week starts earnings
season with Alcoa kicking it off on Monday.
Have a great weekend!
