As if to commemorate the Labor Day, the long-awaited report has brought some optimism in the U.S. labor market somewhat lessening fears of a repeated national economy recession. With the exception of the agricultural sector, the employment level fell by 54 thousand jobs, with almost double figure predicted earlier.
The previous week has finished with growth for the U.S. stock market, owing to B. Bernanke’s speech. The FED chairman has assured the markets of continued financial support of the U.S. economy.
The professor of economics at New York University’s Stern School of Business Nouriel Roubini believes that in the third quarter U.S. GDP growth won’t exceed 1%. The economist evaluates the chances of a repeated recession at 40%. One can hardly question Roubini’s estimates, but how could they help to make money with such forecasts?
Lloyds TSB Group plc (NYSE: LYG) has continued volatile trading against the background of new problems faced by British banks. Lloyds shares came close to 4.31 points, losing -0.01 (-0.23%).
Now it’s all up to Bernanke’s speech. Bank of America Corporation (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM) shares rise in price today, but can dramatically collapse due to interest rates rising by the Fed.
The British stock market is in a deep red. Bears captured the market from the start bidding. FTSE 100 index tumbled to 5,290.13 points, giving the bears -86.28 (-1.60%). Barclays PLC (LON: BARC) is near its lowest level 323.20 points, losing -10.45 (-3.13%).
Citigroup Inc. (NYSE: C) is 4.06 points, losing almost 1% (-0.98%). At the same time, analysts believe that Citigroup Inc. shares may gain thanks to the new BP plc (NYSE: BP) large orders.
The euro exchange rate started to rise from the bottom. After seven months of nonstop decline of the euro / dollar, finally, closed with a surplus in July amid falling concerns about the crisis of European sovereign debt and the extent of its influence on the global recovery.
The exchange rate euro will not stand against the new tests are confident BNP Paribas analysts. Euro / yen can not stay in the range of 110.00/113.30, despite the threat reduction, which is based on the willingness of Fed Chairman Ben Bernanke to further weaken the monetary policy when the need arises, note currency analysts BNP Paribas.
The DJIA waited for his finest hour, the bulls are no longer afraid of a new collapse. Dow Jones Industrial Average was 10,343.11 points, picking up +222.58 points, or 2.20%. Meanwhile, the European stock market ends trading in the green zone. Stock market in Germany again concluded the session on the positive territory with a significant increase in the indices.