Weak US Payrolls Send Futures and Precious Metals Soaring

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US Index futures are soaring this morning, while the US Dollar and Treasury yields are falling. Traders appear to see a disappointing US nonfarm payrolls report as reducing the odds of an interest rate increase this year. Meanwhile, Canada’s employment numbers were very strong.

Precious Metals are soaring again today in response to the US employment news and US Dollar weakness. Crude Oil is quiet as traders continue to assess the situation in the Middle East.

US nonfarm payrolls unexpectedly declined by 23K in July, well below expectations for an increase of 80K and the previous increase of 20K. Canadian employment increased by 75.1K, significantly exceeding expectations of 15K and the previous increase of 18K.

NASDAQ futures are up 1.0%, while Dow Futures are up 0.4%.

Overseas, the Nikkei slipped 0.1%, while the Hang Seng gained 0.5%. In Europe, the DAX is up 1.0%, and the FTSE is up 0.7%.

In Commodities, Crude Oil is down 0.4% but remains above $75.00/bbl, while Brent Crude is down 0.8% but continues to trade above $80.00/bbl. Gasoline is up 0.2%, trading near $2.95/gallon. Gold has surged 2.7% to above $4,400/oz, and Silver is up 5.6%. Copper is down 0.6%, trading near $6.65/lb.

In Rates, the US 10-year Treasury note yield has fallen back towards 4.60%, while the US 30-year Treasury note yield has fallen below 5.20%. The US Dollar Index is down 0.5%. The Euro and Loonie are each up 0.5%, the Yen is up 0.8%, and Bitcoin is up 1.3%.

Looking ahead, China’s inflation data comes out this weekend.

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