Monday, Jan 17, 2022
HomeEconomyUS unemployment rate lowest in 50 years.

US unemployment rate lowest in 50 years.

Asian shares edged higher on Monday after data showed the U.S. unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world’s largest economy.

MSCI’s broadest index of Asia-pacific shares outside japan rose 0.16%. Australian shares were up 0.63%. Japan’s Nikkei stock index opened higher but reversed course and fell 0.2%.

The pan-region Euro stoxx 50 futures stxec1 were up 0.2% at 3,435, German DAX futures fdxc1 were up 0.18%, while FTSE futures ffic1 were down 0.03%.

U.S. stock futures, esc1 fell 0.39% in Asia on Monday after the S&P 500 surged 1.4% on Friday.

The offshore Yuan Cnh fell around 0.3% to 7.1337 to the dollar after Bloomberg reported that Chinese officials are signalling they are increasingly reluctant to agree to a broad trade deal pursued by U.S. president Donald Trump.

There was no onshore Yuan trading, as Monday is the last day of a long china holiday for its national day.

The media report also pushed up safe-haven assets such as gold and the Yen.

Crude oil futures pared losses to trade little changed amid caution about a resolution to the trade dispute.

Sentiment toward the U.S. economy deteriorated sharply much of last week after disappointing data on manufacturing and services suggested the trade war was taking a toll, and more rate cuts would be needed to avert a potential recession in the world’s biggest economy.

But a modest September increase in U.S. jobs, announced on Friday, eased some of these concerns and lifted U.S. markets that day. The U.S. unemployment rate fell to 3.5% in September to reach the lowest since December 1969. Non-farm payrolls also grew in September, but slightly less than expected.

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