ASX set to dip on tepid U.S. jobs report

October 11, 2021 - 2 weeks ago
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On Monday, Australian shares are poised to edge lower after Wall Street’s main indexes wavered in bumpy trade on Friday and finished flat following a disappointing non-farm payrolls report.

Friday’s U.S. Non-Farm Payrolls report, a key indicator for the U.S. Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program, badly missed expectations.

The U.S. economy created just 194,000 jobs in September, missing a forecast of 490,000, the U.S Labor Department reported.

The ASX futures slid -4 points, or -0.05%, 7,273, while our local currency, the Australian Dollar, is currently buying US$0.7304 (as of writing).

On the positive side, the unemployment rate itself fell to a much lower point than economists forecast.

At 4.8%, that’s the same level seen in late 2016; August’s jobs report was revised up to 366,000 compared to the initial read of 235,000.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average slipped -8.69 points, or down -0.03%, to 34,746.25.

The broad-based Standard & Poor’s 500 Index edged lower -8.42 points, or -0.19%, to 4,391.34, while the rich-tech Nasdaq Composite Index fell -74.48 points, or -0.51%, to 14,579.54.

Spot gold rose +0.1% to $US1,757.00/oz, while in other markets, energy stocks surged higher on Friday as West Texas Intermediate crude rose +1.3% and settled at $79.34 per barrel, and Brent oil, oil’s international benchmark, added +0.5% to $82.39.

Meanwhile, iron ore prices rose +5.4% to $US123.38 a tonne, while Bitcoin was flat at $US54,410.00 (as of writing).

Based on the technical assessment, a mixed opening is anticipated with the immediate resistance considered minor at 7,335, with 7,355 located above. Reassess from there, while the support is considered at 7,280 (minor), with 7,240-45 assessed beneath.

Daily outlook on the benchmark S&P/ASX 200

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