Asian markets extend the positive trend ahead of the US employment situation. Despite negative Chinese inflation data, the MSCI’s broadest index of Asia-Pacific shares (ex. Japan) rose 1.2% today. In contrast, Europe’s recent rally halted today ahead of US jobs data. Markets opened the day subdued due to a batch of negative data from Germany and UK regarding industrial production.
The Labor Department’s monthly jobs report is likely to be in the spotlight on today, overshadowing a separate report on wholesale trade.
US Non-farm payroll released by the Labor Department continued the strong streak adding 252,000 jobs in December. Unemployment rate fell from 5.8% to 5.6%. The employment gains for November and October were revised to show an increase of 50,000 combined.
However average wages saw a decrease of 0.2%, falling for the first time since July 2013. However US companies are wary of lowering exports on account of the global economic slowdown, to which the US seems the strongest exception. US stock futures rebounded on the note of optimism created by the jobs report.