U.S. Average Hourly Earnings m/m inline at 0.3%. Non-Farm Employment Change at 134K vs expected 185K. Unemployment Rate at 3.7% vs expected 3.8%. Japanese Average Cash Earnings y/y at 0.9% vs expected 1.3%. U.S. Treasuries extended their weekly losses following the release of the jobs report, pushing yields higher across the curve. The 2-yr yield advanced one basis point to 2.88%, and the benchmark 10-yr yield jumped three basis points to 3.23%, extending its weekly gain to 16 basis points and marking its highest close since 2011. JPY remained bid against the Dollar on the back of continued risk-aversion in U.S. equity markets. USDJPY down -0.18%, $113.72.
German PPI m/m at 0.3% vs expected 0.2%. Euro up 0.08%, $1.1524. Headlines indicated that the EU is willing to offer the UK a “super-charged” free-trade deal. According to the report which cited EU officials, Brussels’ proposal will be presented to the UK news Wednesday. Not much detail was known, except that it covers between 30 to 40% of UK PM May’s demands. Seems unlikely that UK authorities will give up to most of the Chequers’ plan to agree with this upcoming idea, but in the meantime, market players believe that both parts will work hard to avoid a no-deal. Sterling up 0.79%, $1.3123.
Canadian Employment Change at 63.3K vs expected 25.0K. Unemployment Rate inline at 5.9%. USDCAD up 0.09%, $1.2937.
S&P 500 down -0.55%, 2,885.57. Nasdaq down -1.21%, 7,399.01. Nikkei down -0.58%, 23,821.50.
In corporate news, Costco (COST 218.82, -12.86) lost -5.6% despite reporting above-consensus earnings, and Tesla (TSLA 261.95, -19.88) dropped -7.1% after Elon Musk seemingly mocked the SEC in a late Thursday tweet, just days after agreeing to a settlement with the agency over securities fraud allegations stemming from his failed bid to take the company private.
