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


Finance

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Australia Warns DCNS after Security Breach

Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines,

Energy

ABS Makes it Safer to ‘Walk to Work’

ABS announced the publication of The ABS Guide for Certification of Offshore Access Gangways. The new Guide addresses certification for safety systems used for “walk to work” (W2W) crew transfers.

Viking Grace Marks 1,000 LNG Bunkering Milestone

From the very beginning, the M/S Viking Grace – delivered in January 2013 – was an environmental milestone.   The vessel attracted global attention as an environmental

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Fuels & Lubes

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Viking Grace Marks 1,000 LNG Bunkering Milestone

From the very beginning, the M/S Viking Grace – delivered in January 2013 – was an environmental milestone.   The vessel attracted global attention as an environmental

News

White House: Iranian Ships' Actions in Gulf Increase Risk of Miscalculation

Actions by Iranian vessels in several encounters with U.S. warships in the Gulf this week are cause for concern and increase risks of miscalculation, the White House said on Friday.

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Government Update

White House: Iranian Ships' Actions in Gulf Increase Risk of Miscalculation

Actions by Iranian vessels in several encounters with U.S. warships in the Gulf this week are cause for concern and increase risks of miscalculation, the White House said on Friday.

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Iran Vessels Make 'High Speed Intercept' of US Ship

Four of Iran's Islamic Revolutionary Guard Corps (IRGC) vessels "harassed" a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1064 sec (9 req/sec)