The US employment data record for October released on Friday showed positive signs on the world’s largest economy while adding more hopes to the potential interest rate hike by the Federal Reserve later this year.
According to the Labor Department’s report on non-farm payrolls, US added 161 00 jobs last month, lesser than the consensus economists’ expectations of 175 000 jobs.
Service industry produced 43 000 new jobs including 8000 in computer system designs and other IT-related while health care services brought up 31 000. The education and health sector created 39 100 posts combined.
But the highlights of the reports that described a healthy job market in the country were the surging wages and lower unemployment.
On a year-on-year basis, the average hourly earnings for private-sector workers jumped sharply by 2.8%, the largest annual rise recorded since June 2009. On numbers, the wage growth saw additional 10 cents at $25.92 in hourly earnings, which could further solidify the rate hike this December by the central bank.
The unemployment rate met the analysts’ expectations as it ticked down 4.9%, slightly lower than the 5% dip last September.
Major equity markets across the globe closed the week on the back foot, falling sharply on Friday session, as uncertainties on US elections continued to hound investors.
The All-World index MSCI, which gauges the performance of 47 countries, closed down 0.43%, and was dragged down mainly by the poor performance from Asian and European equities.
Across Europe, the pan-European STOXX 600 slumped by 0.83% as all its sectors finished lower. UK’s FTSE 100 futures shed 97.25 points, or 1.43% at 6693.26. Germany’s DAX lost 66.75 points, or 0.65% at 10259.13 while France’s CAC dropped 34.22 points, or 0.78% at 4377.46.
Meanwhile in Asia, Japan’s Nikkei lost 1.3% and Australia’s ASX touched a near four-month low as it gave up 0.8% amid the election-related jitters. Singapore’s shares extended its losing streak to six days as it ended 2.5% lower while Hong Kong’s Hang Seng index finished 0.18% down.In Wall Street, the S&P 500 closed lower for nine consecutive trading sessions, the longest losing streak for the energy sector in 35 days, giving up 3.48 points, or 0.17% at 2 085.18 while the Dow Jones industrial average futures and the NASDAQ composite both sank 0.24%.