Friday, November 4, 2016

Wall Street in high-light chips in the longest series of declines since 2008 – Jornal de Negócios – Portugal

The major u.s. indices have opened in high-light this Friday, November 4, after they had completed yesterday, the eighth session of consecutive losses – the longest series of losses since 2008.

The industrial index Dow Jones goes up 0.01% to 17.933,31 points, while the technological Nasdaq gained 0.10 percent to 5.063,16 points. Already the S&P500 value 0.07 per cent to 2.090,66 points, after having reached yesterday the lowest value since July.

Before the opening of the market, it was revealed that the the north american economy has created 161 thousand new jobs in the month of October, with the unemployment rate back to 4.9% (less a tenth of that in September).

Even though they have been slightly below the estimates in (173 thousand), these data should open walks from the Federal Reserve to rise the interest for the first time this year. In addition to increased job creation and falling unemployment rate, the wages reported in October, the biggest increase since 2009, which confirms the healthy evolution of the american economy.

Before they were well known employment data, the Federal Reserve has decided to keep the interest unchanged Wednesday, a decision widely expected by economists. However, the monetary authority has indicated that the arguments for a rise have been strengthened, making predict that there will be news in December.

according To the futures obligations, the likelihood of an interest rate rise in the last month of this year increased to 78%, which corresponds to the highest level since March. Last week, the probability was in the 69%.

however, more than the evolution of monetary policy, are the presidential elections in the United States that are at the center of attention. The blurring around the result, and the dissemination of opinion polls giving an advantage to the republican candidate inspired a movement of escape from the risk in the markets, which issued strongly the stock market indices, favoring, on the other hand, the assets of refuge such as gold.

“The elections in the United States are the 'elephant in the room' for the markets, this time”, refers to Christian Gatticker, director of research at the Julius Baer Group, quoted by Bloomberg.


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