TradingFloor.com Tweets of the Week: Non-farm puzzles analysts
Before we head home for the weekend, let’s run-down the week’s top highlights on TradingFloor.com starting with the latest non-farm payroll data out of the US.
The number of jobs created for September rose by 114,000, in line with analysts’ estimates. The big surprise came in the unemployment rate, which fell from 8.1% to 7.8% for the month. This was the reaction from our TradingFloor.com team:
It appears that roughly 873,000 people were accounted for in the Household Survey, a sharp increase, although the numbers still don't add up. The news will nevertheless be received well by policymakers at the Federal Reserve who have launched a new campaign to reduce the jobless rate. Ed Matts, a strategist at Capital Management, said the positive jobs data could be a sign that things are starting to turn around in the US.
The other big news this week came from Australia where the Reserve Bank cut its benchmark rate by 25 basis points to 3.25%, as the outlook for growth in the commodity rich country continues to deteriorate. Australia grew by 4% in the first half of 2012, and while this may seem a lot for a struggling European nation, the economy faces weakening external demand for its goods from trading partners like China.
But Ken Veksler, a regular blogger on Tradingfloor.com and native Australian, said the rate cut was likely to be the result of domestic rather than external developments, pointing to the effects a new carbon tax policy on consumers and businesses in the country.
This mattered little to Merlin Rothfeld, the host of Power Trading Radio, who appears to have turned a profit from the move. Meanwhile, Rick Samimi, who according to his Twitter account is a 'Coca Cola and chocolate addict' (aren’t we all), believes the RBA should have cut rates sooner.
Our final hot topic this week was Brent Crude, which according to my TradingFloor.com colleague Ole Hansen, went for a ride in markets, travelling almost ten dollars in a few days.
That's all for today. Have a relaxing weekend and don’t forget to send us your tweets by including the hashtag #TFtweet.