A stronger than expected US labor market report has brought
Federal Reserve taper talk back into the market as investors try to
predict when the US central bank will cut back on its $85 billion
per month spending plan.
US employers hired 204,000 new employees
, nearly twice the figure analysts were expecting. Since the Fed
has said the taper will be closely linked to US unemployment, many
saw the report as reason to believe the bank could start to pull
back as soon as December.
In other news around the markets:
US retailers are gearing up for what some analysts are expecting to
be the weakest holiday season since 2008. Since Thanksgiving falls
later than usual this year, Americans will have six fewer days to
shop which could cut into companies' coveted holiday sales. Sales
from this time of year typically make up about 30 percent of annual
A typhoon in the Philippines has killed an estimated 10,000
people and displaced a further 600,000. The storm brought down
between 70 and 80 percent of the structures in the Leyte province,
making rescue efforts much more difficult.
After high level talks between Western leaders and Iranian
officials failed to result in a conclusive agreement over Iran's
disputed nuclear program, US lawmakers revealed on Sunday that they
wanted to tighten sanctions on Iran in order to avoid giving up too
much if a deal is reached at the next round of talks. The two sides
are expected to meet again in 10 days at lower level talks, but
officials claim there is a good chance of an agreement. Starting on
Monday, the EU and US are expected to hold a second round of talks
to discuss a free trade agreement between the two regions. The two
sides will focus on coming up with a set of common regulations
which would make products made and tested in the EU ready for sale
in the US.
Asian markets were mixed to start off the week, the Japanese
NIKKEI rose 1.30 percent and the Hang Seng index gained 0.99
percent. However New Zealand's NZ 50 slipped 0.59 percent and
Australia's ASX 200 fell 0.25 percent.
European markets were quiet on Monday, the UK's FTSE was up 0.12
percent and the eurozone's STOXX 600 gained 0.10 percent. France's
CAC 40 was up 0.11 percent and the Spanish IBEX lost 0.21
Energy futures gained with Brent futures up 0.32 percent and WTI
futures up 0.24 percent. Precious metals also climbed with gold up
0.13 percent and silver up 0.34 percent. Industrial metals were
mostly higher with copper up 0.25 percent and tin up 0.68
Currency markets were quiet on Monday morning, the Euro
continued to trade at $1.33 and the pound slipped 0.07 percent
against the dollar. The yen gained 0.11 percent against the
dollar and the Australian dollar gained 0.02 percent against
Notable earnings released on Friday included:
Eldorado Gold Corporation (NYSE:
) reported third quarter EPS of $0.05, compared to last year's EPS
of $0.11 on revenue of $281.84 million. Cablevision Systems
) reported third quarter EPS of $0.22 on revenue of $1.57 billion,
compared to last year's loss of $0.01 on revenue of $1.69 billion.
Stocks moving in the Premarket included:
Facebook, Inc. (NASDAQ:
) gained 0.37 percent in premarket trade even after weak user data
made investors nervous about the company's future Groupon,
) rose 2.63 percent in premarket trade after slipping last week
following weaker than expected earnings.
Earnings reports expected on Monday include:
) is expected to report a third quarter loss of $0.47 on revenue of
$70.26 million, compared to last year's loss of $0.48 on revenue of
Monday will be a quiet day for economic data, with only a few
closely watched reports out including Italian industrial
production, Norwegian CPI, PPI and core inflation data and British
house price balance.
For a recap of Friday's market action click .
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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