U.S. Payroll Data and Passage of Infrastructure Bill Added Upbeat Sentiment to the Market
U.S payroll number higher than forecasted and congress passed long awaited infrastructure bill, however markets wary of higher reading on U.S. inflation numbers later this week
Asian equities are mixed with trader’s sentiment on upbeat after U.S. October payroll number and congressional passage of the infrastructure bill. However, the market is waiting for U.S. inflation reading later in the week.
The market cherished after October jobs report showed U.S. payrolls had beat forecast and added 531,000 jobs last month, according to Labor Department. Friday’s payroll number release also revised September and August figures upward.
The congress also passed long waited more than $1 trillion infrastructure bill which is now pending for President Joe Biden’s signature. The bill would provide funding for transportation, utilities and broadband among other infrastructure projects. The passage of the bill in the congress sent upbeat sentiment to the market.
Major indexes in the U.S. closed at record high on Friday. The Dow Jones jumped 203.72 points, the S&P 500 inched up by 0.4% and the Nasdaq Composite up by 0.2%.
Over the weekend China export data also beat forecast of October resulting in a record trade surplus. However, lower than expected import numbers reflects poor domestic demand.
The MSCI Asia ex Japan index dipped by 0.46% after few major indices pared gains.
Crisis in the labor market along with bottlenecked supply chains is expected to reflect higher reading for inflation data due on Wednesday. A higher reading could prompt Federal Reserves to reinitiate talk on rates hike.
The U.S. 10-year yield is at 1.465 today up by 85 basis point.