Jobs data weighed, markets lower... Why the UK pound plunged 6 per cent...
Jobs data weighed, markets lower
Friday brings jobs data for both Canada and the US with the latter in focus among global investors for its potential impact on the Fed’s interest rates decision.
Experts are forecasting America to add 172,000 non-farm jobs and no change in the 4.9 per cent unemployment rate.
Oil and gold prices are remaining steady so far.
Asian markets closed lower ahead of the jobs data and as the UK pound unexpectedly plunged 6 per cent to hit a new 31-year low. Shanghai was closed again for the week-long public holiday.
European markets are also mostly lower following the pound’s slump.
Wall Street and Toronto are expected to open lower ahead of job’s data.
Why the UK pound plunged 6 per cent
Asian markets were spooked overnight as the British pound plunged more than 6 per cent in a matter of minutes. It appears the crash may have been caused by a computer algorithm reacting to a news report on Brexit, sending the currency to a new 31-year low. Other possibilities include human error.
The pound did recover some of its losses fairly quickly but the shock was enough to add a dose of caution to the markets and the currency was still around 2 per cent off its level at the close of Wall Street’s markets in the previous session.
Friday brings jobs data for both Canada and the US with the latter in focus among global investors for its potential impact on the Fed’s interest rates decision.
Experts are forecasting America to add 172,000 non-farm jobs and no change in the 4.9 per cent unemployment rate.
Oil and gold prices are remaining steady so far.
Asian markets closed lower ahead of the jobs data and as the UK pound unexpectedly plunged 6 per cent to hit a new 31-year low. Shanghai was closed again for the week-long public holiday.
European markets are also mostly lower following the pound’s slump.
Wall Street and Toronto are expected to open lower ahead of job’s data.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,268.50 (-0.07 per cent) | -1.45 per cent | +8.80 per cent |
| TSX Composite | 14,595.50 (+0.10 per cent) | -1.36 per cent | +5.24 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 7,036.44 (+0.52 per cent) | +2.77 per cent | +11.05 per cent |
| German DAX | 10,539.19 (-0.28 per cent) | -1.99 per cent | +5.70 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,253.28 (+0.27 per cent) | -1.84 per cent | +1.57 per cent |
| Japan Nikkei | 16,860.09 (-0.23 per cent) | -0.90 per cent | -7.98 per cent |
| Other Data (at 2.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 52.63 (+0.23 per cent) |
50.59 (+0.30 per cent) |
1257.30 (+0.34 per cent) |
U$0.7545 |
| Aus. Dollar |
|||
| U$0.7577 | |||
Why the UK pound plunged 6 per cent
Asian markets were spooked overnight as the British pound plunged more than 6 per cent in a matter of minutes. It appears the crash may have been caused by a computer algorithm reacting to a news report on Brexit, sending the currency to a new 31-year low. Other possibilities include human error.
The pound did recover some of its losses fairly quickly but the shock was enough to add a dose of caution to the markets and the currency was still around 2 per cent off its level at the close of Wall Street’s markets in the previous session.
