Strong U.S. Jobs Report Pushes Up Dollar

Posted by Michelle Howard
Thursday, July 03, 2014
  • World shares close to peaks, bond yields creep higher
  • ADP report fuels hopes for upbeat non-farm payrolls
  • ECB keeps rates at record low, Draghi expected to stay dovish



World shares dipped from a record high and the dollar and U.S. bond yields climbed on Thursday as strong jobs data added to bets that U.S. interest rates could rise within the next six months.

U.S. employment growth jumped in June and the unemployment rate declined to near a six-year low of 6.1 percent, effectively dispelling fears about the economy's health and underscoring its momentum heading into the second half of 2014.

The headline gain of 288,000 jobs was well above forecasts of 212,000 and was the first time since the technology boom in the late 1990s that the gains topped 200,000 for five straight months.

"It's an extremely bullish report. Not only did you have a gangbusters headline and private read but you had a diffusion index that was 64.8, which shows significantly healthy breadth," said Mohamed El-Erian, chief economic adviser at Allianz SE.

"It's a report that really checks off all the positive boxes, I don't think you could have asked for a stronger read."

The prospect of a relatively near-term rise in U.S. rates that would finally end the era of near-zero borrowing costs saw U.S. stock futures pare gains ahead of the start of U.S. trading and trigger a small dip in MSCI's record-high All World index .

The dollar also rose in the currency market, hitting a session high against the yen and the euro as markets also tuned in for the monthly European Central Bank news conference as it fleshed out last month's easing measures.

ECB President Mario Draghi said the risks facing the euro zone economy meant interest rates will stay low for an extended period and detailed plans for a new, conditional tranche of ultra-cheap loans to banks that it hopes will lift the economy.

U.S. government bond yields - which move inversely to prices - also rose, climbing to 2.68 percent for the first time in two weeks as the prospect of rising U.S. interest rates dampened their appeal.

The contrast with the dovish ECB took the premium of 10-year treasuries over their German equivalent, the Bund, to its highest since 1999.

Oil, Gold Slip

In commodities, crude oil extended losses after falling the previous day on signs of more supply from Libya and Iraq.

Libya's acting prime minister Abdullah al-Thinni said the government had reached a deal with a rebel leader controlling oil ports to hand over a final two terminals that should end a blockade.

Iraqi Prime Minister Nuri al-Maliki also boosted supply hopes as he said parliament could form a new government in its next session after the first collapsed in discord.

Baghdad can ill afford a long delay as large swathes of the north and west fall under the control of an al Qaeda splinter group

Brent crude was back below $110.50 for the first time in over two weeks while safe-haven gold fell 1 percent to $1,313.55 an ounce as its biggest fall in over a month pulled it back from a 3-month high.

(By Marc Jones, Reporting by Marc Jones, editing by John Stonestreet/Ruth Pitchford)

 

For the latest MaritimeJobs, visit www.MaritimeJobs.com

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

BAE Systems Awarded Two Navy Contract Modifications

The US Department of Defense informs it has awarded separate contracts to BAE Systems in Jacksonville and in Norfolk for ship repairs and modifications as follows: 1.

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

Energy

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

FortisBC Set to Expand its Tilbury LNG Facility

FortisBC Energy Inc. today selected Bechtel Canada Co. (Bechtel) as the contractor for its Tilbury LNG Facility Expansion Project in Delta, B.C. (Project). The

US Crude Oil Exports Hit 15-year High

U.S. crude oil exports reached 288,000 barrels per day (bpd) in May, the highest levels since April 1999, data from the U.S. Energy Information Administration showed on Wednesday.

Fuels & Lubes

There’s Still Time for SHIPPINGInsight Award Entries

Entry submissions for the first SHIPPINGInsight Award are due Friday, Aug. 1, but organizers said they will continue to accept nominations through following week to provide some extra time.

MOL Ship Management Earns Energy/Enviromental Certifications

First company to receive ISO50001 certification from Nihon Kaiji Kyokai.   MOL Ship Management Co., Ltd. (MOLSHIP), a core ship management company in the corporate group headed by Mitsui O.

Kenya's Mombasa Port Traffic Up 13% in H1

Container traffic through Kenya's biggest port grew by 12.8 percent in the first six months of the year after new cargo handling infrastructure was built to shorten the turnaround time for ships.

News

Exxon Mobil Corporation Declares 3Q Dividend

The Board of Directors of Exxon Mobil Corporation yesterday declared a cash dividend of 69 cents per share on the Common Stock, payable on September 10, 2014 to

FortisBC Set to Expand its Tilbury LNG Facility

FortisBC Energy Inc. today selected Bechtel Canada Co. (Bechtel) as the contractor for its Tilbury LNG Facility Expansion Project in Delta, B.C. (Project). The

Port Manatee's 3 projects to get underway

Port Manatee has been awarded a $1,837,500 security grant, allowing the port to proceed with three significant projects. The award, the second-highest for any

Government Update

Growing American Shipping Bill Introduced by Garamendi

Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, informs ot the introduction of  H.

BOEM Extends O&G Lease Comment Period

The Bureau of Ocean Energy Management (BOEM) is extending the public comment period for the Request for Information (RFI) and Comments on the Preparation of the

China Evacuates Workers in Libya to Malta

China has evacuated several hundred workers from Libya and is taking them by ship to Malta, the head of the Malta Civil Service, Mario Cutajar, said on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Security Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1008 sec (10 req/sec)