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U.S. indices lower, despite strong private payrolls
Following several days of gains, U.S. indices were lower on Wednesday, as markets failed to react to better than expected private payrolls data.
Data released by the ADP’s Nation Employment report showed that private payrolls had risen by 455,000 jobs in February.
💡A breakdown of these figures: Total U.S. Nonfarm Private Employment: 455,000 By Company Size – Small businesses: 90,000 1-19 employees 37,000 20-49 employees 53,000 – Medium businesses: 188,000 50-499 employees 188,000 – Large businesses: 177,000 500-999 employees 59,000 1,000+ employees 118,000 By Sector – Goods-producing: 79,000 Natural resources/mining 9,000 Construction 15,000 Manufacturing 54,000 – Service-providing: 377,000 Trade/transportation/utilities 49,000 Information 0 Financial activities 12,000 Professional/business services 61,000 – Professional/technical services 24,000 – Management of companies/enterprises 1,000 – Administrative/support services 36,000 Education/health services 72,000 – Health care/social assistance 62,000 – Education 11,000 Leisure/hospitality 161,000 Other services 21,000 |
This was marginally better than the 450,000 jobs markets had expected and comes as January’s number was also revised higher.
Despite this, markets continue to wait for further developments on peace talks with Russia and Ukraine, with uncertainty still putting investors on edge.
As of writing the NASDAQ and S&P 500 were down 0.42% and .043% respectively.
Oil prices surge, as crude inventories fall by over 3 million barrels
Oil prices rallied during today’s session, as it was reported that stockpiles of crude oil have fallen by more than expected.
Figures from the Energy Information Administration reported that stockpiles had dropped by 3.4 million barrels last week.
This was more than analysts’ forecasts for a drawdown of 1.02 million barrels and comes as markets expect OPEC to hold fire on any output changes.
source: tradingeconomics.com
According to some reports OPEC+ which includes Russia, is thought to be keen to keep current output levels as is.
OPEC Secretary General Mohammad Barkindo validated this, stating that members should try to, “to stay the course”.
WTI crude rose by close to 4% on the news, hitting a high of $108.75 per barrel.
DAX 30 drops, on fears of recession in Germany
Germany’s DAX 30 was lower on Wednesday, as the country’s council for economic experts warned that a recession could be near.
In a statement, the group warned that, “The high dependence on Russian energy supplies entails a considerable risk of lower economic output and even a recession with significantly higher inflation rates”.
This follow’s comment from German Chancellor Olaf Scholz who said that a ban on imports of Russian energy could have a negative impact on the nation.
Scholz stated that this, “would mean plunging our country and the whole of Europe into a recession.
The DAX 30 closed 1.45% lower following the reports.
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