"Yesterday's ADP payrolls figure came in sharply weaker at -32k, with the previous month revised down to -3k. The data emboldens calls for the Fed to ease in the months ahead, even if much of the weakness stems from an annual adjustment tied to BLS data. With the BLS expected to remain closed due to the government shutdown, traders are treating the ADP release as the main event in the likely absence of tomorrow's jobs report."
"A White House memo has warned that the economy loses around $15 billion in GDP for each week the government remains shut, a sizeable headwind if the deadlock lingers. For now, Vice President Vance has struck a confident tone, saying he does not expect a prolonged shutdown. But House Speaker Johnson has been less committal, remarking that "we all have different views" on how long it might last."
"European markets are pushing higher this morning, with the DAX and CAC each gaining more than 1% to lead the region. The dollar continues to soften after the payrolls release, helped along by a drop in the ISM manufacturing PMI's prices paid index to 61.9 from 63.7, while gold and silver are finding fresh momentum to the upside this morning."
European equities advanced, led by the DAX and CAC, supported by risk-on buying. ADP payrolls fell to -32k with the prior month revised to -3k, boosting expectations of Federal Reserve easing despite some weakness from an annual BLS adjustment. With the BLS likely closed amid the government shutdown, traders treated ADP as the primary jobs signal ahead of a postponed report. The dollar softened after the ISM manufacturing PMI prices-paid index dropped, while gold and silver rose. A White House memo warned of about $15 billion in GDP lost per week of shutdown, and political statements on duration remained mixed. Pharmaceuticals led gains after a Pfizer deal removing tariffs for lower drug prices.
Read at London Business News | Londonlovesbusiness.com
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