U.S. equities fell on Friday after a solid August jobs report failed to ease fears that the Fed would keep aggressively hiking interest rates to fight inflation. All of the major US equity averages were lower to end the week, making it their third negative week in a row. The Nasdaq Composite is down 6 days in a row - something it hasn't done since early August 2019. Value stocks continued to outperform high-valuation growth stocks, and large-caps held up significantly better than small-caps. Energy shares suffered as oil prices declined below $90 per barrel for WTI crude. Much awaited Friday’s August US jobs report showed that the economy added 315,000 jobs last month while the unemployment rate rose to 3.7% from 3.5% in July as the labor force participation rate increased. Earlier in the week, the JOLTS Survey for July indicated that job postings unexpectedly increased, reaching nearly two per unemployed worker. The evidence of continued tightness in the labor market helped push the U.S. Treasury yields higher, with the two-year Treasury yield reaching levels not seen since late 2007. Shares in Europe fell sharply on fears that central banks could tighten monetary policy aggressively for an extended period. Worries that Russia might stop natural gas supplies to Europe also weighed on sentiment. After the market closed on Friday, Gazprom announced that a technical fault would extend the pipeline’s closure. The dollar hit a 20-year high.
EU energy woes and hawkish Fed weigh on stocks
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. (6)
