Mixed signals on corporate earnings and global growth pushed European and Asian stock markets lower on Tuesday while the dollar made more progress, driving below $1.07 per euro for the first time since April.
A robust report on U.S. employment released last week has strengthened the conviction of economists who have been forecasting a December interest rate increase from the Federal Reserve, according to a Reuters poll published on Tuesday.
Nowadays many of us don’t what to make of the numbers or what to believe anymore. There certainly is a school of thought the market didn’t rally because they now believe the Fed will raise rates in December.
Let’s skip the formalities: Today’s NFP report was essentially perfect. The marquee U.S. (and global) jobs report showed that the world’s largest economy created a stunning 271,000 jobs, crushing economist’s best estimate of 181,000 and the previous report’s negatively-revised 137,000 reading.