US: Strong jobs data should calm the markets – Nordea Markets
Anders Svendsen, analyst at Nordea Markets, suggests that the last week’s strong non-farm payrolls data of US is likely to calm markets a little bit.
“Even if the manufacturing sector seems to be heading for much slower growth momentum the much more important service sector will be held up in the near term by that many more people getting a job and wages growing at a faster pace.”
“However, the very strong increase in employment suggests that some temporary factors may also be a play. Moreover, the unemployment rate increased, indicating that the household survey was much less bright than the establishment survey.”
“Looking ahead, we expect nonfarm payrolls to slow modestly in the first half of 2019 to around 175k on average, still strong enough to push the unemployment rate lower and keep the Fed eager to deliver more hikes.”