The American ten-year yield climbed several basis points while the dollar strengthened. This surge came as the number of employed individuals increased by 256,000 in December, surpassing market expectations which were set at 165,000, according to Bloomberg. The figure for November was also revised to 212,000 from 227,000.
Unemployment in December stood at 4.1%, down from 4.2% in November. Analyst consensus had predicted a rate of 4.2%, as reported by Bloomberg. Additionally, hourly wages rose by 3.9% on an annual basis, slightly below the expected 4.0%. In November, the figure was 4.0%.
The OMXS30 index on the Stockholm Stock Exchange was down by 0.66%, compared to a decrease of 0.28% just before the data was released. This movement was reflected in the EUR/USD exchange rate, with the euro gaining strength at 1.0222, up from 1.0309 before the statistics were announced.
The yield on the ten-year US Treasury bond also saw an increase, trading at 4.78% compared to 4.70% prior to the release of the data. The previous day, the yield was at 4.68%. Despite the initial positive reaction in the US dollar and interest rates, some experts expressed caution regarding the impact on risk in the economy.
“Good news for the economy is not necessarily great news for risk assets,” noted Robert Oldstrand, a stock strategist at Swedbank. Similarly, SEB economist Robert Bergqvist highlighted the potential challenges posed by higher interest rates on the Federal Reserve’s rate trajectory.
Looking at the data for December 2024, the US unemployment rate was recorded at 4.1%, slightly below the consensus of 4.2%. The labor force participation rate remained stable at 62.5%, in line with expectations. These figures, sourced from Bloomberg, provide a snapshot of the labor market dynamics at the end of the year.
As economic indicators continue to fluctuate, market participants are closely monitoring the developments in employment, wages, and interest rates. The interplay between these factors will shape the trajectory of the economy in the coming months and influence investment decisions across various asset classes. Stay tuned for more updates on the evolving economic landscape and its implications for investors worldwide.