The S&P 500 recorded a new high for a third consecutive day, even though it was reported that November’s Non-farm Payrolls fell well below expectations.
Figures released today by the U.S. Labor Department showed that payrolls increased by 245,000 jobs last month vs an expected tally of 469,000 jobs.
Not only did today’s number fail to meet expectations but was also considerably down from October’s NFP number of 610,000.
Overall, November’s numbers were the smallest gain since the jobs recovery started in May. As of writing the S&P 500 was up 0.61%.
Oil gains as OPEC+ reaches production agreement
After a week of talks, OPEC and its allies have finally come to an agreement on new production measures heading into the new year.
The cartel has agreed to reduce production by 7.2 million barrels per day, starting from next month, which is a difference of 500,000 barrels, from its current cuts of 7.7 million bpd.
Initially many had speculated that OPEC+, which includes Russia, would increase production greater in 2021, as a COVID-19 vaccine is now on its way to market, however the group is moving cautiously, and waiting to see if demand increases, before making further changes.
WTI Crude was up as much as 2% on the news.
GBP hits 2 years high as Brexit uncertainty grows
As the uncertainty surrounding a Brexit trade deal increases, markets responded in similar fashion, with Sterling reaching a 2 and a half year high against USD.
The news that some members of the British government believe that talks are “receding” sent GBPUSD to an intraday high of 1.3538, which saw rates reach their highest level since May 2018.
Some believe that a deal will eventually be reached, as both parties cannot afford the potential economic impact a no-deal will have, especially in the midst of the COVID-19 crisis.
The FTSE 100 was up close to 1%, reaching its highest point since March.
Quote of the day – “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.”Larry Hite
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Senior Market Analyst