May 7, 2010
U.S. Adds More Jobs than Expected
This morning the U.S. government reported that more jobs were created last month than estimated. Economists’ guesses going into the report were for an increase of 180,000
jobs. The actual report showed an increase of 290,000 jobs. The initial reaction by traders was positive for the stock market while yields popped sending Treasury Bonds lower. This reaction lasted
for only minutes as traders quickly shifted their focus back to the sovereign debt concerns in the Euro Zone.
The Euro is trading higher overnight. This is helping to give global equity markets a boost, leading to a call of higher on the U.S. opening. Although the gains are mild
compared to the tremendous losses taken on Thursday, they nonetheless reflect that there are buyers in the markets today. Volatility remains high as measured by the VIX. This indicates that the stock
markets will be susceptible to violent swings throughout the day.
June Treasury Bonds which were the recipient of flight to safety buying on Thursday are trading …
