Strong Private payrolls help boost U.S. stocks
Markets were mostly muted on Tuesday, as they awaited the first of 3 head-to-heads between President Trump and Joe Biden, however, Wednesday saw them slightly rise due to better than expected private payrolls.
According to the ADP report, payrolls rose by 749,000 jobs in September after rising 481,000 last month. This was better than the forecasted 650,000 in September, with gains spread across all industries.
The S&P 500 was up 0.78% on the news, with the NASDAQ gaining 0.89%. Alphabet was the biggest gainer at 1.4%.
German unemployment falls, as retail sales rise
Data released from Germany showed that retail sales in August rose much more than expected, while unemployment also dropped.
This news boosted hopes that consumer spending within Europe’s largest economy could help lead a strong recovery in the third quarter, following on from the coronavirus shock.
Sales came in at 3.7%, with the country’s unemployment rate falling to 6.3%. Regardless of the increase in retail sales, the DAX still fell as talks with the UK on a Brexit deal continue to create uncertainty.
FTSE falls on UK GDP data
Today it was confirmed that the UK GDP fell by the most on record, after declines between April and June.
This came as the Office for National Statistics revised earlier figures, which showed the drop as being over 20%. However, the British economy’s record contraction in the second quarter saw gross domestic product falling by 19.8%
Irrespective of the amendments, the economy still plunged into the largest recession since current records began after two successive quarters of falling GDP due to the coronavirus crisis.
The FTSE 100 declined by 0.53%
Quote of the day – “Why do you think unsuccessful traders are obsessed with market analysis? They crave the sense of certainty that analysis appears to give them. Although few would admit it, the truth is that the typical trader wants to be right on every single trade. He is desperately trying to create certainty where it just doesn’t exist.”Mark Douglas
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Senior Market Analyst